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Blockchain is a technology in which investors from all industries find the potential to overcome current challenges such as security, transparency and storage, and in the same way, supply chain management also takes this into account. Theoretically, technology seems to be of great use with the fundamental benefits it brings with it that have been outlined below.
• The distributed blockchain ledger enables each of the supply chain partners to access the transactions recorded in the chain, improving the ability to verify and verify the supply chain. In addition, supply chain and goods validation becomes easier for sellers and customers due to blockchain transparency. The immutability function does not allow changes in the stored data making the blockchain a reliable memory.
• Every time a new transaction is executed, it is automatically registered in the chain that disables redundancy and the time to wait for partners to provide details, thereby improving logistics and also eliminating transactional loss.
• Smart contracts automatically execute agreements between two parties based on the contract language embedded in the programming code. Whenever a party completes its agreed actions, payments are processed automatically and all transactions are updated to save time and avoid late payments.
• Blockchain technology is compatible with various data collection technologies such as IoT, as data is stored directly in the ledger and all users within the chain network have access to it.
• The secure transfer of data in real time is another feature of the blockchain that is valued among supply chain entities. The distributed ledger not only allows data transfer but also eliminates the concept of rule over data from the supply chain, which means that stored data is not owned by a single entity or involves third parties for storage, improving Overall efficiency of the chain.
The advantages mentioned above may require immediate investment and the adoption of technology, but also some constraints. Data is critical for all organizations to analyze the current market and predict future trends that make companies hesitate to adopt blockchain and share their data. In the management of the supply chain, if the transactions are visible to all the entities of the network, the details concerning the coating and the transactions will be disclosed and this becomes the main obstacle in the adoption of the blockchain. Although developers have created applications that share selective data with entities, they must be more persuasive for organizations to break down data silos and reunite for an advanced supply chain management system.
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