The distributed ledger technology promises to establish a democratic structure in business supply chains with complete provenance over the entire system. The distributed ledger technology or blockchain technology comes with a world of new possibilities for the participants, especially with complete traceability and connectivity. The continuous source of truth prevails which is equally shared between the participants of the supply chain. There are certain aspects of the supply chains which have emerged as pain areas. Today, supply chain concepts are changing quickly and some of the areas
Reduce or eliminate fraud and errors – With blockchain, the chances of error are minimal and the chances of fraud are almost zero! Indeed, blockchain comes up with solutions that completely verify the users within the network and prevent nonparticipants from working within the ecosystem. The near-perfect identity verification from the end of blockchain protected supply chains ensures that there are no instances of identification thefts.
Improve inventory management – Enhance inventory management life cycle using the most advanced inventory management solutions. Along with speed and accuracy, there are a series of steps that get modified within an established value chain. The term value chain has significance owing to the amount of value it adds to a concerned supply chain. All components of the inventory can be controlled democratically by all participants in the network involving suppliers, transporters, warehouses, loaders, supervisors, quality analysts, and retailers.
Minimize courier costs – The courier costs get reduced significantly when the blockchain-powered electronic transfer models ensure hassle-free transferring of paper bills of lading. The successful issuance of bills of lading by the freight and forwarding companies are just the beginning of the new era of decentralization of supply chains.
Reduce delays from paperwork – The same point has been discussed above and the major advantage of blockchain decentralized networks lies in its ability to minimize the paper works. The minimization of paperwork leverages the speed of transactions from days and weeks to hours. Some transactions can also got verified within minutes resulting in quicker transactions.
Increase consumer and partner trust – The blockchain enhances the personal level of trust between the participants of the supply chain. It is in good trust that good businesses thrive in competitive business environments.