The applications of Blockchain in logistics and supply chain
Blockchain technology is creating a massive impact across many different industries out there in the world. The impact created by blockchain on logistics and supply chain holds a prominent place out of them. From inventory tracking to conducting audits and payments, blockchain technology has got the potential to revolutionize the entire industry.
What exactly is blockchain?
Before we understand how the blockchain in logistics work, it is important to have a clear understanding on what blockchain is. According to definition, blockchain is a distributed database, which holds digital data records or events, so that they are tamper resistant. People will be able to access the blockchain, add new data, and inspect existing data. However, they don’t have the permission to change or delete data that exists within the Blockchain. This can give life to a public and a permanent information trail in the long run.
Many people confuse Bitcoin with blockchain. You need to figure out that Bitcoin is only the beginning of blockchain technology. You can find many applications of blockchain and it can easily be scaled according to different industries.
The impact created by blockchain in logistics
Now you have a basic understanding of what blockchain is all about. With that in mind, you can take a look at how blockchain is creating an impact in the supply chain and logistics industries.
With the help of blockchain technology, you will be able to make more secure transactions. On the other hand, there is high possibility for you to ensure the transparency of all transactions that you do. This creates an ideal platform for the applications of blockchain in transportations, supply chain and logistics.
In every single moment where a product changes hands, the transaction needs to be documented. This will belong to the permanent history of the product. All the steps from manufacturing of a product up to the point of sale should be documented and recorded accordingly. This can reduce the expenses as well as time delays that can take place due to human errors.
We can see many examples that showcase how big players have started using blockchain in logistics and supply chain. According to them, there is a possibility to expand blockchain technology to create a universal supply chain operating system. Then it can provide a large number of benefits to the supply chain and logistics industries in the long run.
With the help of blockchain technology, there is a possibility to record the transfer and quantity of assets. In here, the assets include containers, trailers, pallets and many more, which people often find it as a difficult task to track and manage. You will be able to overcome the pain associated with the process and improve efficiency with the help of Blockchain technology.
It is also possible to use Blockchain technology to track the receipts, purchase orders, shipment notifications, change orders and all other types of trade related documents in an effective manner. If there is a need to verify or assign documents and properties of the physical products, blockchain technology can provide an excellent assistance to get the work done.
Another prominent benefit that you can find in Blockchain technology is the ability to link physical goods along with series numbers, digital tags such as RFID and bar codes. You will also be able to share useful and essential information related to assembly, manufacturing, delivery of freights and maintenance of the products with vendors and suppliers. All you have to do is to implement blockchain technology and receive the benefits that come along with it.
Is blockchain implementation worth to consider?
Now you have a clear idea about how to use blockchain in logistics and supply chain. Now you must be wondering whether it is worthy to take a look at it and go forward with it.
You can receive an enhanced level of transparency after the blockchain implementation. That’s because you are properly documenting the overall journey of a product throughout the supply chain process. Whenever you come across the need to get specific information, you are provided with the chance to do it.
Blockchain technology also come along with an increased level of scalability. You will be able to have any number of participants in the blockchain and you can allow them to access from any number of touchpoints. Most importantly, blockchain technology can provide you with improved security. You will be storing all information within an inedible and a shared ledger, which has codified rules. This can eliminate the need to have regular audits by external processes and systems.
To experience all these benefits and move forward with innovation, you are strongly encouraged to think about implementing blockchain in the supply chain and logistics businesss that you manage.