The Benefits of Blockchain in Supply Chain Management
What is a supply chain management system?
Supply chain management is a system of managing various activities necessary to produce and deliver goods and services to customers. SCM ensures that overall production from its initial stage to delivering the final goods to the customer is done in an efficient manner. SCM includes every such activity which turns raw material into finished goods until it satisfies the customer’s requirement.
Why Is Supply Chain Management Important?
Numerous advantages encourage the adoption of SCM in commercial organisations. The following list highlights some of SCM's significance:
- Provide mechanism for end user benefits: SCM offers a methodical way for the entire process to be carried out. It also enables flow synchronisation, which makes it easier to carry out the task in accordance with the flow and eliminates the issue of task confusion.
- Minimise cost: SCM offers a variety of cost-cutting techniques that help a company develop. One can determine the newest trends that are in demand and the things that are causing the loss, for instance, by continuously monitoring or keeping track of each item. As a result, one can lower the price and make the necessary modifications.
- Minimise waste: SCM helps in minimising waste by reducing excess and outdated products.
- Timely delivery: SCM ensures that goods and services are delivered to the customer promptly and efficiently. On-time delivery is a prerequisite for any business.
- Increases firm's profit: By knowing the latest trends to invest in and reducing supply chain costs, it can result in an increase in the firm's profit.
- Customer satisfaction: Customer satisfaction is increased through SCM's provision of high-quality goods in the precise quantities that customers requested at the appropriate times, as well as after-sale services.
- Building relationship between supplier and organisation: Building relationships between businesses and suppliers will enable ideas and information to be shared, which will aid in the development of strategies, the improvement of processes, and the reduction of costs.
What Does A Supply Chain Manager Do?
The supply chain is managed by a supply chain manager, who is in charge of an organisation’s supply chain from raw materials to production. Effective supply chain management requires careful planning, efficient processes, and effective communication and collaboration among all parties involved. Hence, the supply chain manager makes it possible.
The process is overseen and coordinated by the supply chain manager to enable the transformation of raw materials into completed goods and delivery to the client. They monitor the stock of the company. They make sure that there aren't any hazards in the future, and if there are, they deal with them. To make sure that activities adhere to quality standards, they are in constant contact with suppliers and vendors. Thus, it can be claimed that supply chain management assesses the product over its full life cycle.
What Are The Benefits Of Blockchain In Supply Chain Management?
Blockchain technology can help improve supply chain management in several ways, such as by reducing fraud, increasing transparency, and providing traceability features to track the movement of goods and materials. Blockchain is a distributed, decentralised public ledger that enables the recording of transactions on numerous computers in such a way that the record can never be changed. Blockchain enables businesses to store and share data securely. The following are some advantages that blockchain offers to increase the effectiveness of supply chain management:
- Transparency: Blockchain technology allows you to track all types of transactions securely and transparently. One can even trace the history of the product right back to its origin. By using a decentralised ledger, blockchain can help improve transparency. Hence, blockchain technology resolves the issue of transparency in supply chain management.
- Traceability: In blockchain technology, transactions are always up-to-date. So companies can ask for the product’s status and location at any point in time.
- Efficiency: Blockchain makes the transactions efficient by allowing companies to complete their transactions without a third party which reduces the risk of fraud. Hence it increases trust, security, and transparency.
Blockchain Techlead @ GlobalVox || Web3 || Solidity || Hyperledger || ReactJs || NodeJs