How Blockchain Will Transform the Logistics & Supply Chain Industry?
Documentation problems, transparency issues, and goods traceability complications in the supply chain and logistics industry can be solved by using a modern technology-based system.
Logistics and supply chain is the world’s biggest industry that connects every country of the globe. Thus, managing such a big industry needs extraordinary methods and ways beyond paper and pen-based trails.
Related to the very product, a supply chain covers tens of phases & hundreds of stages relating to different stakeholders, various geographical locations, and dozens of payment systems and invoices.
Hence, we need a fully automated supply chain because it is a crucial part of every business and company. On the other hand, with the growing and stiff competition, we can’t rely on the previous methods.
Instead, we need a sophisticated supply chain management system for the needs of all consumers. Supply chains are now more complex, larger, and interconnected!
Blockchain supply chain solutions are the only method that can transform this industry.
In this article, we are going to tell you about the blockchain transformation in the supply chain and logistics industry.
Can Blockchain In Logistics And Supply Chain Solve These Issues?
Most of the companies that are part of the logistics and supply chain hesitate to share data about their supply processes. Therefore, the visibility of each chain lurks under shadows.
Today, the majority of supply chain and logistics through practice standard process still faces the problem in tracking and viewing components while the supply chain is in action.
Along with blockchain, big data allows every business to optimize data and save money.
Most of the world’s countries use pen and paper-based methods rather than using digital systems to remain in the industry of logistics. Moreover, if a country is using a digital system to manage logistics and supply chain, then it is probably an outdated system.
I mean that the digital legacy systems and pen-paper system, both are slow, have errors in them. Thus, i is time to support modern, digital systems, i.e, blockchain in the
supply chain and logistics industry.
"Lack of Traceability, Documentation and Regulatory Compliance, Counterfeits, and High Costs are the main issues behind the failure of a supply chain."
The above-mentioned problems don’t help the decision-makers as they don’t have actual information for making accurate decisions.
That’s the reason why the supply chain and logistics management look fragmented and cause extra investments of money. In any case, the lead generation is also low; means profit loss.
However, all these problems are easily addressable or mitigable simply by implementing the blockchain and modern technology systems. The new tech systems are designed to give businesses, clients, and customers better transparency and accountability.
Furthermore, the new system saves time, money, and accurately records, store data.
Therefore, we are saying that the top blockchain technology applications from USA in your supply chain and logistics can resolve the issues you are facing!
How Blockchain In Supply Chain & Logistics Affect Business?
Before we try making you understand the blockchain’s role in supply chain and logistics, let’s first discuss what blockchain technology means?
Remember that the blockchain’s use is not restricted to a cryptocurrency like Bitcoin.
The blockchain is a distributed digital ledger network that potentially keeps a record or log of all transactions in a more secure way. Always remember that the blockchain’s use is not only limited to cryptocurrency like Bitcoin!
You can use blockchain for the information exchange, contracts/agreements building, data/product tracking, and payment.
Every single transaction is recorded in a block and multiple copies of the same data are distributed over multiple network nodes while maintaining transparency and data security the first priority. All the blocks are linked with each other, offering high security.
Changing one block disturbs the network of the block; thus, making it difficult for hackers and cybercriminals to corrupt the blockchain.
As you know that the supply chain and logistics industry is full of ample amounts of data, the blockchain can be the best way to save the data cost-effectively and in less time. Also, it would keep the data fully secure without causing any data-related hacks.
Furthermore, the blockchain enhances transparency, increases the supply chains’ efficiency, and smooths the process of delivery and payment. Let’s understand it in more simple words!
Every time a product (ordered or stored in warehouses) changes its location within the supply chain, all the transactions related to that product are easily documented using the timestamps.
Timestamps data maintains the product’s full history: from product manufacturing to its sale.
“Now, imagine if such a process is maintained by the pen-paper method or software-based digital input system method. As a result, there are time delays, cost increase, human errors, and more delivery time.”
But, the blockchain eliminates all these problems to zero and positively carry forward the logistic and supply chain industry.
Impact Of Blockchain In Logistic Industry & Supply Chain
- Blockchain easily records the product quantity and its transfer in/between supply chains.
- Blockchain network tracks the orders, shipment notifications, documents, and receipts.
- Blockchain easily links products to RFIDs, barcodes, serial numbers, etc..
- Blockchain makes processing & manufacturing information processes, delivery information, and maintenance of products more transparent.
- If you use the blockchain solution for the supply chain, then the data sharing, product tracking, becomes effective.
- Blockchain helps in reducing the cost of moving products/items.
- Blockchain prevents information and data tampering and keeps transparency between vendors, manufacturers, retailers, customers, etc.
- Enhances visibility in the supply chain with the timestamping.
- Blockchain networks can also track assets and handle complex asset transfers.
- Blockchain is flexible, robust, scalable, secure, and a support system to the current supply chain & logistical network.
We can now say that blockchain business solutions along with the existing technologies when integrated for this industry would create a more responsive system that can easily track every product, its data, its transaction history, etc. at any point in the time of its travel.
ZRIX has already started using blockchain technology for increasing the productivity of its clients’ business in the supply chain and logistics industry. If you are also looking to automate your business in this industry, then contact us soon.
We are a top blockchain development services company in USA that uses technologies like AI, data handling, IoT, machine learning, and application development to transform the methods of moving goods including easy tracking capabilities.
Forget all the challenges and issues of your business in this industry, and start using blockchain now!