If there is one thing that is fast changing is technology, as there are always new innovations in the world of technology. However, there is a new concept which is emerging known as block chain technology and I am pretty sure if you mention this term to most people you might get a blank stare since you may be speaking of an unfamiliar topic.
These kind of technology is what drives crypto currencies such as Bitcoin and not so many people are aware of this. Nevertheless, this is about to change since block chain technology has the ability to bring change to everything.
What exactly do you understand by Supply Chain?
This process connects people, resources, companies, activities and technology used during the product development and its sale. Supply chain management can be defined as the administration of information, materials and finances as they are transferred from the supplier to the manufacturer to the wholesaler to the retailer then finally to the consumer.
The Definition of Block chain
This is a process where several computers are connected to a network and once a transaction is carried out, they settle on agreement on which transactions are valid then later added to the record of transactions and once that is done, it gets linked the previous transaction.
Block chain’s Potential to Revolutionize the Supply Chain
When Supply Chain was developed around 200 years ago, it had the aim to improve visibility and goods control as they got transferred from one point to another. But as time went by it became less supportive to the modern production and supply cycles.
Fortunately, the introduction of block chain has a potential to bring a transformation in how goods are produced, marketed, purchased and supplied. Using the block chain technology, the transfer of goods is registered on the ledger and each transaction identifies the individuals involved, together with the product’s price, date, quality, location, product’s state and any other information applicable.
It enables every product to be easily traced to its producer and back to the raw material used in making it. Due to the fact that the ledger’s structure is not centralized, there is no way anyone can claim to own it or exploit the data for their own interests.it is also not easy to compromise it as the transactions have a nature based on cryptography.
Advantages of Using Block chain in Supply Chain
There is more transparency due to its shared database. There is a sense accountability and trust between parties as they are responsible of uploading information and data concerning their products. Also, since block chain is developed using totally secure blocks, it enhances security as every block is a copy of the chronologically stored document which are linked to previous blocks.
Blockchain technology always has the customer’s interests at heart. Businessmen can always check on the block chain databases to see how the production of the goods are faring on.
Through the use of labor union sheets, clothing brands will be able to transparently give block chain access to their customers.
It can process complex data to come up with accurate and applicable solutions. This will not only enable prediction by users, but will also allow them to locate lugs present in the chain of supply. Its analytics are very useful in companies especially the ones which are interested in economizing the chain of supply. Through block chain technology you also are able to eliminate middlemen. You can there after download information directly and instantly after signing on the block chain. This can streamline communication.
It is totally digital. This will consequently reduce work done by the administration. As a result, everything will be on the spot. It also is global. This technology is very compatible and can therefore support several worldwide communications and partnerships.
Disadvantages of Block chain technology.
Block chain technology has been developed recently. Most of the companies are still very skeptical about it. It will take some time for it to command trust in the global market. Secondly, block chain is global and will eventually be forced it to yield to several international laws put in place by trade blocs.
When used to by few users, block chain can be very expensive. It will only be economical if many companies embrace it in their supply chains. Block chain programming is also very technical. Companies will either have to carry out block chain training extensively or involve a third party to do the work.
Block chain Technology is gaining popularity in the food supply chain.
Large companies in the world including Nestle and Walmart are currently investing heavily in block chain technology. This is in an effort to change how they distribute food globally. The Food Safety Modernization Act obliges companies to account for the traceability of their products.
This requires companies to provide information on where their food came from and to whom it was distributed to. This calls for records. Through block chain, they will be able to do away with bulky paper work yet store more useful information digitally.
Blockchain is the way to go. Just as the invention of electricity changed everything, block chain will revolutionize the world of finance. Globalization will be realized soon enough. In this world where everything is becoming digital, block chain technology is the next big thing!
Look up for me information in https://www.iqsdirectory.com/resources/how-blockchain-is-improving-the-global-supply-chain/ and be enlightened further on how using block chain technology affects global supply chain.