Supply chain
management is a complex process involving numerous stakeholders, ranging from
suppliers and manufacturers to distributors and retailers. Transparency and
traceability throughout the supply chain are critical for building trust among
all parties involved and ensuring safe and high-quality products.
However,
achieving this level of transparency can be difficult, especially in industries
where stakeholders lack trust. Here is where blockchain technology comes into
play.
In this
article, we will look at how blockchain can assist supply chain management in
transitioning from traceability to transparency.
Blockchain is a
decentralized digital ledger that securely and transparently records
transactions. Each block of data in a blockchain is linked to the previous
block, forming a chain of data that is difficult to tamper with or modify.
Because blockchain is decentralized, no single entity has control over the
data, making it a secure and transparent way to record transactions.
Blockchain’s
Role in Supply Chain Management
Providing
transparency and traceability is one of the most difficult challenges in supply
chain management. This is especially important in industries such as food and
pharmaceuticals, where product safety and quality are critical.
By providing a
secure and transparent way to record transactions and track products throughout
the supply chain, blockchain technology can assist supply chain management in
moving from traceability to transparency.
The ability to
track a product from its origin to its final destination is referred to as
traceability in the supply chain. This is accomplished by documenting each step
of the supply chain in a centralized database.
While
traceability provides valuable information about where a product has been, it
does not always provide information about the conditions under which the
product was manufactured or transported. This is where blockchain technology
can help significantly.
By recording
not only where a product has been but also the conditions under which it was
produced and transported, blockchain technology can help move supply chain
management from traceability to transparency.
Blockchain can,
for example, be used to record the temperature and humidity conditions of a
pharmaceutical shipment, providing valuable information about the conditions
under which the product was transported.
Furthermore, by
allowing stakeholders to access the same information in real-time,…
