Blockchain enables new possibilities for Supply Chain
The supply chain is a complicated but well-figured source of developing revenue. After the outbreak of Covid-19, every sector got jeopardized as human-to-human contact got stopped. But the technology sector opened its door wide enough to let everyone in. And the panacea for that is Blockchain.
What is supply chain?
Supply chain is the distribution of specific products to the buyer by forming a network between the company and suppliers. The process of supply chain involves fulfilling growing consumer demands, multiple channels to market, international complexities, and many other factors. A supply chain has the responsibility to hold a multitude of changes, international locations, hundreds of invoices and payments, have multiple parties involved, and extend over a long period.
At the time of the Covid-19, when everyone switched to the online mode of living their lives, the supply chain became extremely difficult due to the stuffing workload. The supply chain was heaped with multiple times its usual work as people took the online market to fulfill their demands.
Challenges faced by supply chain during the pandemic
Supply chain is suffering to cope with its general cycle of increasing sales, reduce cost and complexity of manufacturing processes, decrease fraud, and accelerate production and distribution due to sudden external and internal pressures. The pressure involves increased complexity, the volatility of demand, and a changing retail market.
Transparency plays a vital role in the supply chain as consumers go to companies that provide transparency to the source of their products even when it comes at a high cost. The transparent supply chain increases trust and satisfaction in customers, along with an increase in sales.
When the world is facing a pandemic, manufacturing houses were on a standstill due to ceased production. To add up to this trouble, the process of transporting was also blocked. These two changes brought the supply chain to a broken stage.
Supply chains that could adapt to new changing trends in sales and platforms attract customers more. Customers look for a shopping experience at various channels as per their needs. To subsist with this is the supply chain that could speed up the process and adapt to situations and customers demand real quick.
By referring to all the transformations, the supply chain has gone through comes an immediate solution. Blockchain technology could play a vital role in addressing all these challenges and fulfill the customers at the same time.
Blockchain overhauls supply chain challenges
By applying blockchain to the supply chain, it aids benefit by forming a history for product modification, documentation of transaction from manufacturing to sales. This will permit anyone who has the authority to trace transactions if necessary.
A survey concluded with 84% of respondents saying they are actively involved with blockchain, and Gartner forecasts that blockchain will generate an annual business value of US $ 3 trillion by 2030. Blockchain reduces cost, increases speed, and reach to customers by merging with the supply chain.
Automation of data in blockchain to form a network and keep close track of analysis will help the integration of blockchain technologies.
Blockchain is an evolving source. By adding that to the supply chain to maintain good business involves getting educated with new updates in the blockchain market. Keeping up with the trend is an easy way to control technology and gain profit through it.
The impact of Covid-19 has made business companies accelerating with the supply chain to embrace developing technologies like blockchain to stay resilient and active. By going hand-in-hand with technology even after the pandemic vacates, will lead to unprecedented heights.