Blockchain is a system of recording information in a way that makes it very difficult to hack or change the data. In recent times we have seen the rise of blockchain impacting the supply chain industry. As a better-automated alternative to centralised databases, blockchain can solve many of the supply chain industry’s problems. To learn more about how blockchain is disrupting supply chains, continue reading.
One key way that blockchain is disrupting supply chains is through fraud prevention. In the world of luxury goods, fraud is abundant, as we see an influx of counterfeit products, from clothes to wine. However, blockchain can prevent this fraud from happening. Sensors and RDIF tags can track the production of luxury items, such as clothes, shoes and handbags, to ensure their branding is real. This could be especially useful with the rise of online second-hand designer items stores, as sellers can prove the authenticity of their products.
Blockchain can improve the industry by reducing costs. By tracking the product in real-time the overall cost of moving items is reduced. Blockchains speed up administrative processes in systems which guarantees the security of transactions, while also reducing extra costs. Cryptocurrencies can be used as payment by customers instead of EDI. Furthermore, accurate record-keeping reduces the risk of losing products.
Many businesses want their products to have a stamp of ethical approval, giving their customers peace of mind about where the product came from. Blockchain can track the journey from a product’s origin, such as a farm, to where the product ends up. This can also improve trust between manufacturers and suppliers. A manufacturer should be able to depend on its supplier to ensure high factory safety standards. Trust is also a vital part of regulatory compliance which the secure record-keeping of blockchain can help maintain.
If you need to simplify your supply chain, then Vasanda can help. We can bridge the gap between your supply chain and commerce processes, helping you to add significant value to your supply chain. For more information, contact us today.