Technologies such as blockchain (crypto) are opening up incredible new opportunities for bringing about greater transparency and other improvements to supply chain management.
Not only does it have the potential to considerably drive down administrative costs, but it also promises to greatly improve traceability.
History And Outlook
The earliest cryptocurrency, Bitcoin, brought about near-global experimentation within the financial services sector.
For example, in 2015, OMX Group Inc. and NASDAQ partnered with blockchain startup Chain to test crypto technology for the trading of ordinary shares in the Nasdaq Private Market. What’s more, many major UK banks continue to work on their own concepts by implementing cryptocurrency technology.
This surge in interest and popularity has led to many companies now exploring the use of blockchain technology outside of the financial services sector.
Within the context of the supply chain industry, crypto has the potential to bring about immense value by reducing risk, bettering efficiency, and even increasing transparency.
The Potential Benefits
Potential benefits for the supply chain include:
- Doing away with unnecessary paperwork and administrative fees and expenses
- Solidifying the meeting of corporate standards by increasing the traceability of the material supply chain
- Better compliance in terms of outsourcing manufacturing contracts
- Reduced risk of losses brought about by grey market business and trading
- Better engagement with stakeholders
- Increased credibility and trust due to better transparency
The ability to accurately track the supply chain end-to-end is crucial. With the help of crypto technology, organizations can now create a completely decentralised record of all transactions. This will improve their ability to track an asset from the point of production to that of final delivery.
Especially when dealing with goods of a high value such as pharmaceutical drugs, diamonds, etc., blockchain tech can play a massive role in reducing fraud and theft.
What’s more, since full transparency can lead to a massive reduction in counterfeit products, companies will be in a position to instill new confidence in their end-market customers.
What blockchain can do is provide all the parties within a supply chain with equal access to shared information. This could go a long way toward reducing miscommunication and even the loss of data during transfer processes.
Supply chain providers are heavily reliant on accurate administration processes and on-time financial auditing.
Crypto technology can reduce the many costs associated with audits and remove the need and resources associated with manual credit and compliance checks.
Companies working in the supply chain industry should keep an eye on what their competitors are doing – especially those interested in the implementation of blockchain technology. Crypto guides can help greatly here too as they offer invaluable information and insight into the sector.
Once key stakeholders start to make use of the technology, it will become much easier for others to join in and enjoy the same benefits.
It is crucial not to fall behind on the latest developments to avoid falling out of touch with relevant new technology. Companies would do well to stay abreast of whatever transpires within the context of crypto tech applications.