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Blockchain Transforming The Supply Chain and Logistic Industry

Author: Mobiloitte Tech
by Mobiloitte Tech
Posted: Dec 08, 2018

What is Blockchain?

Blockchain Technology in today’s world is the most popular and the rapidly growing technology with the emergence of Bitcoin. The framework behind Bitcoin is Blockchain which records the transactions securely and transparently. The transactions which take place are tamper-proof i.e no other person can do any changes in it. Bitcoin uses the Proof-of-work (PoW) protocol for validating transactions. Ethereum uses Proof-of-Stake (PoS) protocol. Every industry is hoping the next generation of Blockchain will use Proof of Involvement and Integrity for tamper-proof transactions.

Blockchain has many practical applications in various industries like accounting sector, healthcare management, financial service industry, identity management, and supply chain management as well.

What is Supply chain management?

The main role of supply chain management is to optimize the flow of goods and services from the suppliers to the retailers. They ensure quality, quantity and the timeliness of delivery. These managers have to face several challenges because each company in the supply chain has its own values and motives. If a retailer provides something which should be kept away from water, the retailer must ensure that the product should always be kept away from water. Carelessness from the supplier side may result in a great loss for the retailer. Managing a global supply chain involving overcoming challenges like new governmental rules, changes in consumer demands, shortages and thefts and many more. Supply chain frauds occur when goods are stolen or counterfeited. Fraud can occur at any point along supply chain which makes difficult to track the sources of fraud. Blockchain technology may be able to solve some of these modern-day supply problems.

How can Blockchain improve supply chains?

A permanent record of transactions:- Comparing to traditional, centralized systems, Blockchain is unique because of it’s an ability to record verified transactions from several nodes. Let us consider C1 and C2 be two companies when C1 receives an order from C2, blockchain automatically invoices C1 less any damaged goods. When this payment is made blockchain records the complete transaction data automatically which can be tracked in future.

Production and Shipments:- As the goods move from one place to another there should be a proper tracking of the goods. They should also know the stage of production along with the precise date of arrival.

Fast-Track Goods through customs:- There should be proper checking of goods while coming into the country. No illegal products should come to the country. Customs officers should ensure this, This is a long process with lots of paperwork but due to blockchain custom officers nowadays can do the paperwork more easily and effectively.

Verifying Product Source:- Blockchain helps the customs officers and the consumers in verifying the source of the product more easily as it is the most important part of any product to have a verified source.

Reducing frauds & counterfeit:- As a result of greater product traceability, Blockchain technology will help in reducing the supply chain frauds. Talking about counterfeit the companies can easily trace who had to access the product and will also be able to check the tampering status.

Blockchain helps many industries in getting more advanced and secured, It is also helping the supply chain is getting more advanced and secured.Mobiloitte, one of the best and top class blockchain app development company provides many new and innovative ideas to the clients so that they can implement those ideas in their business and can perform well in their business sector.

About the Author

I am a technical writer who writes about many technologies. Mobiloitte one of the best Chatbot development company develops various types of chatbots which are relevant for the use of clients and customers.

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Author: Mobiloitte Tech

Mobiloitte Tech

Member since: Oct 31, 2018
Published articles: 3

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