Globalization has taken advantage of the supply chain network, thanks to which this network is becoming increasingly complex as raw materials come from various locations and are shipped to places hundreds of kilometers away. To meet these challenges, industries are moving towards the supply chain network. Blockchain gained importance only after the introduction of bitcoin, but soon this innovation will play a vital role in the supply chain market.
The supply chain is focused on distribution and organizations are working hard to adopt good distribution practices. Well, delivery can take place both upstream and downstream. Thus, upstream refers to suppliers that manufacture goods and services used in a company's operations such as raw materials while downstream refers to the distribution of products or services of a company to its customers. Therefore, both must be managed well on an individual level.
Complexity and solutions
The challenge faced in modern times is the ever-changing supply chain network and the increasing complexity with it. These complexities represent risks, which include goods that leave the required storage parameters or the risk of contamination.
Therefore the possible solutions, the industries have adopted is to address these risks with blockchain technology. Blockchain technology allows access to all companies in the supply network. When a transaction is registered, it is accessible to all parties involved, but no modification or manipulation is possible. Thus, product monitoring becomes convenient and all users are sensitized at the same time.
Another added benefit is the secure transmission of accurate information between users and the supply chain network. Blockchain allows procurement network managers to track inventory and the exchange of money from the initial transition to the final stage of the final product to the consumer. In this way, each link in the chain will be able to monitor each other the raw inventory, material, work in progress and the final product, thus allowing greater visibility and greater accountability. Suppliers will also be able to track and predict product demand based on inventory flow.