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Driving Supply Chain Innovation with Blockchain Solutions

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oodles blockchain

Blockchain is an emerging technology that is gaining significant traction across industries due to its feature-rich characteristic. It establishes authenticated and verified data communication between each stakeholder in a supply chain without depending on a centralized authority. With blockchain supply chain solutions development supply chain managers can achieve transparency across a supply chain by verifying and storing data in a shared, distributed manner, in real-time.

Blockchain Technology | A Rundown

Blockchain is “a technology that enables people who don’t know each other to trust a shared record of events,” according to Bank of England. Let’s take a look at the essential aspects of the technology.

Characteristics

  • Inherently Traceable
  • Time-stamped
  • Censorship resistant
  • Distributed ledger
  • Near real-time
  • Potential value drivers
  • Transparency and material traceability
  • Lower administrative costs
  • Reduced risk of fraud and gray-market trading
  • Enhanced control of outsourced contract manufacturing

Scope

Connects each stakeholder in the supply chain for secure, transparent, and efficient information exchange

Additional Technology Support

RFID

Current ERP systems

Git and other distributed databases

Cloud-based solutions Technology function and characteristics

Essentially, Blockchain is a digitally distributed ledger or database of records, transactions, or executed events, shared across the participating parties. A consensus of participants in the system timestamps and verifies each transaction in this system.

The technology follows the distributed transaction verification method that promotes data integrity and transparency. This concept dubs it as an enabler of “trustless trust.” It means that parties in a network without trusting each other can participate in exchanges of value with absolute assurance.

Also, unlike centralized systems, Blockchain has no central point of failure as all participants get a copy of the state of the ledger. It makes the business applications and solutions built using it more durable than a centralized system.

Additionally, we can program Blockchain with embedded instructions like if-else and if-then statements for executing actions when parties in a transaction meet certain. These instructions are essentially programmed smart contracts solutions. A smart contract solution can link any information in a blockchain to consequences like transfer penalty fees when parties fail to meet agreed terms.

Blockchain Supply chain Solutions

Implementation of blockchain supply chain solutions can facilitate participants to securely record and share various details like price, date, location, quality, certification, and other relevant information using a single system. The availability of this information within a unified platform powered by blockchain establishes the traceability of material supply chain, reduce losses from counterfeiting and gray market, enhances visibility and compliance of outsourced contract manufacturing, and significantly boost an organization’s, regardless of the industry, position as a leader in responsible supply chain management.

Benefits of Blockchain for Supply Chain Solutions

Blockchain solutions can enable stakeholders to increase transparency, as well as reduce cost and risk across the management of the supply chain.

  • Increased traceability of material supply chain to ensure corporate standards are met
  • Lowered losses from counterfeit/gray market trading
  • Improved visibility and compliance over outsourced contract manufacturing
  • Reduce paperwork and administrative costs

 

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