Blockchain Based Services
"Blockchain, the technology behind Bitcoin & Ethereum”
This is what exactly comes to our minds when we hear the word Blockchain - isn’t it?
Although this is how it initially appeared, it is no longer limited to cryptocurrencies or the financial sector, rather, it has a wide range of applications in various business processes, one of which is supply chain management. Blockchain for supply chain can greatly enhance product quality and enable faster delivery of goods as well as improve coordination between supply chain partners. Not just that, it also ensures high security across all supply chain processes and optimizes business efficiency.
Well, this was just a tiny glimpse of the benefits of blockchain technology in supply chain management. To know more about it and get a better understanding, here’s a 360 degree view of blockchain for supply chain. Check out!
What is Blockchain for Supply Chain?
Supply chain management includes a variety of complex processes, such as raw material sourcing, finished goods manufacturing, distribution, and many more alike - all of which can take place in one or more Blockchain transactions. These Blockchain transactions are then stored in blocks, which are verified by the authorized users within the supply chain. These blocks are then added to previously verified blocks using cryptography, forming a chain-like structure, and distributed across the blockchain network, making each transactional data highly accessible to network participants with proper permissions. Thus, allows all the authorized network participants to see the same information at the same time and provides complete transparency across the entire supply chain process.
Blockchain for Supply Chain - Architecture
What are the Challenges Faced in Supply Chain Management & How to Overcome them?
It goes without saying that effective supply chain management can benefit your business in a variety of ways, including cash flow, customer satisfaction, product quality, and much more. However, establishing an effective supply chain is not as simple as it sounds. So, in order to assist you in achieving an effective supply chain for your business, let’s have a look at some of the prime challenges of supply chain management and ways to overcome them.
Supply Chain Management Pain Points and Solutions:
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Data Management Issues
Tons of data are being generated from various supply chain management processes and it's no secret. These data are then stored in offline databases or individual record systems which are shared with the supply chain participants only on request. This results in communication gaps among supply chain participants and opens up endless opportunities for data theft & loss of data, thereby harming business’s reputation and bottom-line.
And to overcome this issue, Blockchain Technology can come in handy. Blockchain basically records all of the data generated from the supply chain processes in its decentralized ledger system with a date & time stamp which cannot be changed/ tampered with afterwards and distributes it across its network. Thus, proactively shares the data with the intended people without the involvement of any intermediary and eliminates the chances of data loss & fraud.
- Inability to Meet Customer Demands
Let's face it : customer demands and their purchasing habits are constantly changing, and keeping up with them is no easy task. This means you’ll have to keep making changes into your operational processes and strategies in order to meet customer demands and if you fail to do so, you’ll end up losing their confidence. Thus, resulting in lower customer satisfaction.
And that is where Blockchain comes in. Blockchain, through distributed AI & ML, tracks customer spending data & purchasing behavior and provides real-time insights on the same by analyzing it. Thus, helps you identify the current buying trends among customers and aligns your business processes with it, seamlessly.
- Quality Control & Defects
Product quality plays a critical role in maintaining your business’s reputation, so it’s highly important for you to provide high-quality products to your customers in order to satisfy them & enhance your bottom line. However, manually tracking the product at every point along its journey in the supply chain becomes extremely difficult, which can result in lost goods, counterfeiting, and fraud.
And to overcome such issues, Blockchain can be just what you need. Blockchain, through its audit trails, monitors and provides real-time insights on products and assets throughout the supply chain journey. This aids in the tracing of items in transit and the prevention of issues such as theft, detection of tainted goods, quality falsification, and much more.
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Foreign Transaction Costs
When exporting an item across borders, even minor changes in your item can cause significant changes in foreign exchange rates, increasing your costs considerably while managing your supply chain. Furthermore, the international transactional cost when using a bank is also extremely high, which can quickly add up to expenses and reduce your profit margins.
And, to address such issues, Blockchain offers cross-border payments that securely transfers payments between an infinite number of bank ledgers and eliminates the need of an intermediary. Not just that, it also provides a detailed guideline on the foreign exchange rates which you can easily refer to while exporting a product internationally. Thus, helps in reducing the operational costs and improving the bottom line.
Benefits of Blockchain in Supply Chain Management?
We all are aware of the fact that Blockchain brings visible changes to industries in terms of security & transparency.
But, is that all? Clearly, not...
So, to know more about what Blockchain can do for your business, here are the top benefits of Blockchain technology.
Effective Traceability
Enhanced Tradeability
Real-Time Monitoring
Optimized Data Processing
High ROI
Blockchain for Supply Chain - Use Cases
Our portfolio of blockchain for supply chain has diverse use cases with an unified objective - to thicken the profit-line while minimizing time & manual effort requirements across end-to-end supply chain.
Take a sneak peak at our key supply chain use cases in our blockchain development journey so far:
Inventory Management
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1.Keeps track of goods in transit and records data on product movement throughout its journey.
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2.Monitors the inventory levels and alerts when stock is low or when it needs to be liquidated.
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3.Uses artificial intelligence & machine learning to identify which product sells more and provides real-time insights on the same.
Risk Management
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1.Creates smart contracts for supplier & distributor agreements and settlements.
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2.Analyzes industrial asset health via ML and provides condition monitoring reports to identify developing faults in machinery.
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3.Records and monitors supplier data to prevent legal & reputational risks.
Compliance Management
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1.Continuously monitors & protects data as well as checks them against government guidelines to ensure up-to-date compliance management.
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2.Automates data collection & compliance reporting
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3.Maintains a highly secure data and time stamped audit log to track supply chain transactions & eliminate discrepancies.
Logistics Management
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1.Tracks and provides real-time data on freight movements, ensuring better delivery management.
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2.Monitors & analyzes freight performance history via ML
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3.Authenticates supplier & carrier documents & data via cryptography
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4.Provides real-time insights on driver behavior via Electronic logged Devices.
Cold Chain Traceability
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1.Automates quality checking at each stage of the product cycle
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2.Monitors & analyzes product condition in storage via AI & ML
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3.Analyzes risks associated with the end-to-end cold chain management process and predicts probable precautions to bypass that.
Finance Management
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1.Supports zero knowledge proof technology that allows verification of financial data without disclosure.
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2.Enables peer-to-peer transactions (P2P), which eliminates the need of middlemen.
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3.Provides data immutability, which ensures that data cannot be tampered with/deleted once it has been recorded in the system. Thus improves data reliability.
Blockchain in Supply Chain Management - Key Features
Features play an important role in deciding the success of any piece of dedicated software and blockchain in supply chain management isn’t an exception either. So, on that note, let’s have a look at the essential features of blockchain which can help you make the most of your supply chain.
From “sourcing raw materials” to “manufacturing goods” to “fulfilling orders” & “processing payments”, blockchain's distributed ledger enables all participants to track & trace all supply chain activities in real time. Furthermore, blockchain, through AI & ML, also analyzes supply chain activities and generates analytical reports that can be used to identify flaws across the end-to-end process and optimize the overall supply chain system.
Smart contracts on blockchain aim to unify a set of business processes and its potential across almost every vertical is proven. From top-notch customer experience through convenient collaboration to smart contract backed digital currency for significant time & cost reduction and much more - the sky's the limit if you think about the business opportunities.
Every supply chain transaction that occurs among system participants is automatically recorded with a time & date stamp in the distributed ledger, making it virtually impossible to tamper with/delete data. These records are then auto-shared with the participants, allowing them to access data at the same time, seamlessly. Thus, improves & secures record management.
Blockchain makes use of consensus mechanisms such as “proof of work” & “proof of stake” to verify & validate data as well as identify anomalies. Thus, prevents malicious parties from validating bad transactions as well as removes the probability of double spends.
Blockchain provides each of the network participants with an unique digital signature to sign on digitally generated documents, which cannot be forged. Thus, enables the supply chain participants to retain their ownership & authenticity.
Blockchain for Supply Chain - Techstack
Blockchain Frameworks (Contd...)
Blockchain Frameworks
Blockchain Framework and Networks
Blockchain Cloud Services
Smart Contract Programming Languages
Front-end Programming Languages
Javascript Frameworks (Contd...)
Javascript Frameworks
DevOps (Contd...)
Containerization
DevOps (Contd...)
Automation
DevOps
Automation
Why does Developing your Blockchain Software Solution with BinaryFolks make for a Wise Choice?
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Eye For Details
Questions Galore (Until Your Requirement & Our Understanding are mirror copies!)
Insight-Rich Scope Enhancement
Intense Domain Expertise
Close-knit feedback loop
Conclusion
Empowering businesses with authentic proof of ownership and licensing - that's the core goal of blockchain in supply chain management. From authenticating ownership from the past through licensing procedures of choice across industries of all kinds. Not just that, blockchain can also be used for precise license service offerings through smart contract enabled payments.
So it's high time you welcome the consensus factor in your business diminishing any transactional dispute along the chain with BinaryFolks core team of blockchain developers!
FAQs
1. Speeding up goods delivery
2. Optimizing operational cost
3. Improving traceability
4. Easing up stakeholder, buyer & seller
1. Empower convenient & connected communication across supply chain steps
2. Maintaining process transparency to ensure reliability, security and speed all at once.
3. Create seamless platforms to provide real-time free capacity