How Will Blockchain Transform the Supply Chain and Logistics Industry

Firstly, starting with blockchains, it is a system for all transactions made in bitcoin or any other cryptocurrency. They are maintained over a network of computers and are linked to a peer-to-peer network.

With a massive change in technology, blockchain is now being adopted in many sectors all across the world. Be it finance, healthcare industry, supply and logistics industry, travel and tourism industry, real estate industry, etc. The count is increasing each and every day gaining a major part in every industry. With new innovations, the use of blockchains has changed over the past few years.

Blockchain development in India is on the verge of rising as the scope is huge technologically and India is having unbelievable changes in the technological sector. Many more projects are going to land in and create competition in the market. At the same time, Indians need to embrace the future based on blockchain completely which will be different and better.

If we talk globally in accordance with surveys, out of a hundred only 5-10 companies are using cryptocurrencies and around 40-50 companies might have just heard about them. Now when we come to India a negligible number of people might know about cryptocurrencies and trade. Though, the awareness rate is increasing as many start-ups related to blockchain and cryptocurrencies have recently jumped into the market.

Though the use of cryptocurrencies is banned in India but it has numerous other utilities and India is in the revolutionizing phase adapting it each and every day.

Here are some features of blockchains to make it a favorable decision:

• Blockchain technology is cost-effective as it cuts the maintenance cost and also eventually eliminates the cost of middlemen.

• Blockchain is a reliable platform as compared to other platforms for data security. It also provides high-end data and each and every transaction is secured.

• Transactions recorded on blockchains are highly traceable and transparent and this, in turn, reduces all the risks of frauds.

• Through blockchains, individuals can process cross-border transactions quickly and this saves a lot of time.

• No alteration of records can be done on the platform of blockchains and this eliminates data manipulation and corruption.

Blockchains in the supply and logistics industry can enhance effectiveness and transparency. It can impact everything from the warehouse to the delivery and the payment part. For the logistics industry, blockchain is creating transparency of all available documents and transactions which is ultimately increasing the efficiency, agility, and innovation of supply chains.

Here’s how blockchain can have a great impact on the supply chain and logistics process:

• Blockchains can help in recording the quantity and transfer of products available.

• Blockchains can help in tracking change orders, buy orders, trade the documents and receipts from the blockchain ledger.

• Blockchains help in linking physical products to bar codes, RFID or serial numbers and help to store them on the blockchain platform.

• Blockchains help in sharing information about processing or manufacturing process, delivery, assembly and maintenance of products with vendors and suppliers transparently on the blockchain.

By implementing blockchain in the supply chain, one definitely gets to know who they are dealing with, where the product has been sourced from, who processed or manufactured it, and if the payment is fair or not as a proper ledger record is maintained.

Benefits which are offered by the implementation of blockchains in supply chain and logistics:

1) Great tracking facilities:

In modern times, many big organizations and multinational companies don’t have any backstories of the products as there is no traceability of the product and this, in turn, results in higher cost and affects the relations with consumers which in turn impacts the brand reputation.

Competing in modern times, blockchain supply solutions, provenance tracking, data sharing, and data storing have become more effective and simpler. All the transactions available on the platform of blockchains cannot be changed or removed. so, it makes it easy for the consumers to trace the history and origin of the product.

2) Cost Reduction:

Here’s the second benefit. Blockchains allow tracking of products at an easy pace and involvement of middlemen in elimination which ultimately reduces the cost of moving items.

Removing intermediaries from the process definitely prevents extra costs, frauds and reduces the chances of product duplicity. Financial intermediaries can also be eliminated using blockchain technology as the payments between the supply chain parties can be directly processed. So, financial intermediaries like banks are of no use as an intermediary.

3) Increased transparency:

The immutable ledger available on the platforms of blockchain prevents the tampering of information as it cannot be altered and the point of origin can also be tracked. Enhanced visibility also signifies that manufacturers can verify the inventory to prevent counterfeit trade.

4) Trust Building:

Parties involved in the supply chain have to trust each other in order to maintain the credibility and authenticity of a product. So, it’s all about trust and blockchains definitely work on the basis of trust too as it is a reliable platform.

We at Monkhub assist you in developing blockchains. For more details feel free to reach us at https://www.monkhub.com/ or contact us at +91 9090080015.