The pandemic and other contributing factors have created global supply chain disruptions. Many grocery store shelves are close to empty. A record number of container ships have been sitting at the Port of Los Angeles in recent weeks. These ships hold goods and supplies needed for the economy to stay afloat. The holiday season is approaching which means stores will need more supplies than any other time of year. There needs to be an adjustment in how the supply chain functions so that this sort of crisis does not happen again. There are many places for improvement and new technologies that could help. Using blockchain technology is a new development that has the potential to improve the supply chain of many industries.
Blockchain is a decentralized digital ledger that cannot be changed and is shared among many computers to record transactions. It has been mainly adopted for the use of cryptocurrencies, but recently it has become the base for many new innovations. Some see it as a way to make supply chains more efficient and less vulnerable to disruptions. One of the biggest benefits to using blockchain would be the transparency of the supply chain. All users would have access to the same information all at the same time which makes assets trackable at all stages until it is delivered as the final product. Besides giving companies great insight into their assets and needs for their supply chain, it also allows transparency to customers who may be concerned about where materials are coming from. A lot of customers now want sustainable and properly sourced products and adopting blockchain technology for transparency could help a company’s image.
There are also other advantages to using blockchain. The transparency can also help with counterfeit trading and other fraudulent transactions. Better research can be done on where more materials are needed or what could be cut. There would most likely be less errors in data about each step of the supply chain. Less paperwork and administrative work would be necessary because it is all recorded and unchanged on the blockchain. This can all improve quality and reduce costs.
Uses for blockchain technology has been growing over the past several years, and its use in supply chains may be next. Changes need to be made to strengthen supply chains from more disruptions. Blockchain may be one of the best innovations to improve supply chains and give companies greater insight into making them more resilient and efficient.