Impact of Blockchain Technology on Supply Chain Management.
Generational wealth could have been built long time ago if the world had experienced Technological advancements,
In quote, "BLOCKCHAIN TECHNOLOGY".
Blockchain Technology is a decentralised and secure way of storing data that is managed by a network of computers known as nodes.
The data is stored in blocks that are linked together in a chain, forming a tamper proof and transparent records of transactions.
Lately, blockchain technology has been associated with just cryptocurrency alone but fortunately,
Industries ranging from finance, supply chain management, healthcare and voting systems are leveraging blockchain technology to improve security, transparency and efficiency in their operations.
What is Supply Chain Management?
Supply chain management is the process of planning, coordinating and overseeing the flow of goods, services, information, and finances from the raw material stage to the final delivery of the product then to the consumer.
The codes of activities which takes place in Supply chain management includes:
➝Planning.
This involves forecasting demand, setting production schedule and determining the amount of goods to meet customers needs efficiently.
➝Sourcing.
This entails negotiating contracts, building relationships, finding and selecting suppliers to ensure reliable and cost effective supply of materials or services.
➝Procurement.
This is the process of purchasing goods and services from suppliers, ensuring timely delivery and quality control.
➝Production.
Transforming raw material into finished product, managing manufacturing processes and optimising production efficiency.
➝Logistics.
This involves managing the transportation, storage and distribution of goods and services from suppliers to consumers, including warehouse management, inventory control and fulfilment operations.
➝Inventory management.
Monitoring and controlling of stock out, reduced carrying cost and optimising supply chain efficiency.
➝Collaborations.
This involves working closely with suppliers, partners and other stakeholders to coordinate activities, share information and improve overall supply chain performance.
EFFECT OF BLOCKCHAIN TECHNOLOGY ON SUPPLY CHAIN MANAGEMENT.
Blockchain Technology has the potential to tremendously enhance supply chain management by Improving:
➝Transparency: Blockchain Technology allows real time tracking of goods as they move through the supply chain,
each transaction is recorded on a blockchain, providing a transparent and immutable record of the product's journey from manufacturer to consumer.
➝Traceability: With blockchain, each product can be assigned a unique digital identifier that is recorded on the blockchain,
This allows for easy and accurate tracking of products, enabling quick identification of any issues or recalls.
➝Enhanced efficiency: By digitising and automating Many of the the manual processes involved in supply chain management, blockchain technology can help streamline operations and reduce cost,
Smart contract, a self executing agreement stored on the blockchain can automate tasks such as payment processing, verification of authenticity and compliance audit.
Real world examples of companies using Blockchain Technology for supply chain management.
- Walmart✓
- International Business Machine✓IBM.
- Unilever✓
- De Beers✓
- Bumble Bee Fords✓
