Supply Chain Management (SCM) is a complex and demand-driven network. The SCM companies’ most challenging problem is the lack of a proper scrutinizing tool to properly track the end-to-end discernibility. The SCM network is complex right from the stage of procuring raw materials to making the deliveries of finished products.
When in a network which includes lots of steps that lacks proper monitoring, there is nothing better than Blockchain that can eradicate the adversities SCM faces.
What is the suggestion that Blockchain puts forth in the SCM network? Electronic Data Exchange (EDI) is one factor that SCM largely relies on. Even though EDI can perform numerous tasks, it is having a hard time in processing data from multiple sources and on boarding new partners with different data configurations. This trauma with EDI has been dramatically reduced with the introduction of Blockchain.
Paul Brody, Global Innovation Leader, Blockchain at EY said, “The value proposition of Blockchain is the ability to manage complex, multi-party business transactions.” He also said,”The core logic of Blockchains means no piece of inventory can exist in the same place twice. Move a product from finished goods too in transit, and that transaction status will be updated for everyone, everywhere within minutes, with full traceability back to the point of origin.”
Anything recorder in Blockchain technology is not alterable and in the SCM field there will be solid record of each of the assets, thus making the elements of the logistics and SCM network a much easier one to maintain.