Supply Chain Management is an important way to track goods between departments in real time, which can be a huge advantage. Despite this, there are numerous challenges in the supply chain that these management systems face due to the daily increase in the complexity involved.
Imagine if, every time there was a change in ownership of a particular product, the transaction could be documented, creating an endless history of product movements, from production to point of sale, which will definitely reduce delays, additional costs and the human errors that today plague the transactions and help protect fraudulent acts in asset management.
As discussed at the beginning of these series, blockchain technology opens up opportunities to unlock many capabilities with the use of smart contracts. the contracts, being self-executed contracts with the terms of the agreement between buyer and seller written directly in lines of code that exist through a decentralized and distributed network of computers (called nodes), allow to make reliable transactions and agreements between two or more unknown parts without the need for intermediaries, or a central authority.
Blockchain technology unlocks people's capabilities and cooperates with bodies to transparently track all types of transactions, including those that occur along the supply chain.
Most times, supply chain managers experience increasing challenges, making it difficult to follow an effective supply chain approach. The following are some of the key supply chain challenges that include:
Partner Relationship Management
The first factor for successful supply chain relationship management is the performance measurement of a supply chain partner. In an environment where tracking capacity is controlled, where unfavorable regulations prevail, the ability to maintain a good relationship with partners does much to build and maintain an efficient supply chain.
Understanding the strengths of supply chain partners is the area where mutual benefits are likely to be found. It is important to create, understand and follow agreed standards based on trust, to better understand current performance and opportunities for improvement. Having two different methods to measure and communicate performance and results wastes time and effort. Rely on the system put in place to achieve consistent results and better supplier / partner relationships.
Using smart contracts to build the interaction system between you and your partners, you enjoy the trustless property of blockchain technology in bridging the trustee.
Another very important aspect of supply chain management is providing the right product in the right quantity at the right place at the right time. Research shows that most production defects caused by information asymmetry are in many cases due to the breakdown of the link between the main administrations and customers.
The blockchain solves this problem by improving Customer Experience Management (CEM). Companies like IBM and Civic are working creatively on systems to store customer identity information on the blockchain, with encrypted protected data that customers can reveal to their choice.
Monitoring and transfer of ownership of resources
In the chain logistics, the unceasing consensus of all parties with the other parts. These actors usually use completely different information tracking systems, leading to significant challenges for the optimization of the shipping process.
Currently, every part of the chain buys goods, adds value and sells these assets to the next actor in the chain. The relative transfer of ownership is often still recorded on paper and fraud remains a persistent risk. A special blockchain solution for tracking goods along the supply chain addresses the main challenges and significantly reduces costs
Payments from automotive suppliers
The immutability of blockchain technology enables the transfer of funds anywhere in the world without fear of manipulation. Unlike traditional banking methods, the peer-to-peer system allows direct transfer between payer and payee. Moreover, the rapid confirmation of the payment of the blockchain makes the transfer of funds in a few minutes, compared to the days for the automatic payments of the clearing houses. Bitcoin transfers in particular also offer much lower commissions
An excellent example is a production company that pays cryptocurrency with the Australian vehicle manufacturer, Tomcar. Tomcar uses bitcoins to pay suppliers. Since the use of cryptocurrency for payment, one of the main advantages found is cost reduction. While bitcoin has no boundaries by nature, some national governments consider it a way for companies to boycott the use of fiat currencies and a way for them to make an investment. This means that governments impose taxes on some of the companies that deal with cryptocurrencies.
Most reputable companies in the world are using the benefits of blockchain to solve supply chain management problems. One of the key milestones reached so far is the way Walmart uses blockchain in its food security solutions. The partnership between Walmart and IBM leverages blockchain technology development software to track products across the supply chain, from farm to consumer.
Another company worthy of emulation is Stratumn. Stratumn is known for developing a data synchronization system that performs trusted workflows, which synchronize data collected from multiple sources during the generation of a control trail that can be used to ensure data integrity and data integrity. compliance with regulations. The shipping solution developed by Stratuum is a reliable workflow based on blockchain implementation. The developed system allows shipping partners to increase interoperability between all parties, leading to cost reductions and efficient goods tracking.