Market condition is becoming extremely dynamic and demanding which is resulting in a challenging competitive environment. To adapt to this dynamic environment, supply chains have become increasingly contingent on collaboration, integration, flexibility, and trust between stakeholders. That’s why the importance of new technological applications in supply chains have increased more. To improve the supply chain, technology like blockchain should be implemented. It has established itself as the most necessary technology in today’s competitive environment.
Companies should adopt blockchain technology for transforming market conditions and demands in today’s dynamic business environment. Companies have been using Information Technology for optimization in the supply chain process for many years. Earlier Electronic Data Interchange (EDI) was used in companies for communication infrastructure, but later Radio Frequency Identification (RFID) and Internet of Things (IoT) came into the picture and companies started using that to ensure supply chain agility and visibility. However, many technologies are used to make the supply chain more effective but till now the issues about transparency, flexibility, and trust are not completely solved. Which causes many issues such as lack of security, traceability, document identification and verification. Additionally, blockchain technology can increase alliance between network members with possible benefits that include reduced costs and improved efficiency. In the globalising world, competition has extended across the complete supply chain, not just on a company basis. Therefore, supply chain members need to reorganize themselves to balance their organizations’ responsiveness with the market changes by increasing their flexibility. In today’s economic environment, firms outsource some of their business processes for supply chain flexibility, which often results in the loss of control and visibility of various logistics operations. Thanks to digital technologies, the visibility of integrated transportation and logistics systems will be reached at all goods delivery stages, from manufacturers to end-users. Firms need to share information directly to be instantly applied to each firm in the chain to offer supply chain flexibility. Various information is needed to make sure that the chain can act. Thus, information transferred from one organization to another should be helpful and instantaneously available to other partners in the chain. Blockchain technology is suited to assist customers by facilitating tracking and tracing the different stages of an order’s production to delivery and adjusting quickly. The applications brought by blockchain technology can only be realized at specific contact points in the network with all relevant parties’ acknowledgement. Therefore, data security can be regulated for all supply chain transactions. Blockchain can increase supply chain visibility and enable real-time data sharing on the network. Thus, it can strengthen supply chain flexibility strategies by decreasing the number of stakeholders affected by an outage. Blockchain can rapidly combine all supply chain processes. Blockchain technology can improve predictions and manage demand, leading to a more realistic supply and inventory management which will increase transparency, flexibility, and trust in supply chains.
Blockchain came to the attention of the tech world for its role in cryptocurrency, but right now it is used by many industries due to its security and transparency. Supply chain management is another use case where it is being recognized as a new and effective solution. As total visibility and verifiable accuracy become increasingly valuable properties in the modern world, blockchain will continue to grow in its role as a ledger.
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