Even today, whether it’s building a network or dealing with products, it’s extremely complicated to mention supply chain management. Depending on the product, the supply chain can cover hundreds of levels, many international locations, and a large stack of invoices that cover many windows and are likely to wait a few months to process. Due to the complexity and turbidity of the current supply chain, there are many speculations on the market that indicate how blockchain technology will rebuild the supply chain and logistics industry.
Let us explore how the unique technology of the blockchain will help and influence the supply chain.
How does the blockchain help the supply chain?
The most well-known blockchain application was virtual currency and bitcoin, but the decentralized bookkeeping technology of the blockchain made people believe that this technology is ideal for currency trading, currency exchange, contracts, tracking and account transactions. Each transaction is recorded in a different block and sent to a different server (computer), so it is extremely transparent. This is extremely reliable because each block is connected to each other. In this decentralized blockchain world, there is no central authority in any administrative center, which brings efficiency. Ultimately, blockchain can improve the efficiency and transparency of the supply chain and positively impact warehousing, shipping, and payment arrangements. Supply chain has a crucial impact on many things, and block “chain” is a solution that can provide this “chain”.
The most critical help in the supply chain that the blockchain can provide is authenticity and integrity. This technology gives a consensus that the same units in a chain will not have any simulations and need to argue back and forth. All users on the same chain can identify the ownership of the product.
Cases of today’s supply chain application blockchain
Since the blockchain allows people to freely use traditional banking services without having to enter the bank, this function can also be applied to a globalized supply chain. This is how Australian car manufacturer Tomcar uses Bitcoin to lend to them.
With regard to food, having a reliable record to track the source of the product is critical. Therefore, Wal-Mart uses blockchain technology to record pork from China. The record records the source, processing, preservation and taste dates of the meat. Blockchain technology is used in Unilever, Nestle, Tyson Foods and Dole Foods.
The transparency of the blockchain is to let consumers know that they are helping the company’s environmental management and sustainable manufacturing, but all these benefits will return to consumers. This is where Provenance hopes that the transparent record of the blockchain will serve humanity.
Diamond giant De Beers uses decentralized ledger technology to trace the source of the ore and keep it in the hands of filial consumers. This will ensure that the company avoids disputes and blood diamond speculation and ensures the source of ore purchased by consumers.
Taipei startup Odin Ding uses blockchain technology to maintain the authenticity of the pork supply chain. The QR code on the pork is traceable to the source of origin.
Many companies that use supply chains see blockchain technology to increase efficiency and reduce costs. Many companies that join the ranks of blockchain applications are optimistic about the potential of blockchains and the potential for flipping supply chains and logistics.
Trescon held the World Blockchain Summit in Banqiao, New Taipei City on April 25-26 . Government agencies and industry figures will attend the sharing blockchain to help Taiwan.