Why is Blockchain important in supply chain management?
Blockchain technology can be leveraged to decentralize trust in supply chains and bring measurable benefits and transparency of data across the public and private sectors, while at the same time encourage consumer participation in the supply chain.
The distributed database holds records of digital certifications or events in a way that makes them tamper-resistant. While many users may access, inspect, or add to the data, they can’t change or delete it.
Ocean freight accounts for roughly 90% of goods traded globally. Surprisingly, ocean transportation is currently highly dependent on paperwork that has not been securely digitized. Shipping information usually travels through numerous companies and contractors, any one of which can cause a delay.
Since a blockchain is an immutable ledger, changes in possession and ownership of goods as they move from their producer to their point of retail could be entered into the ledger instantaneously and permanently.
The application of blockchain technology to supply chain management could reduce errors, delays, and fraud, improve inventory management, and identify and resolve issues faster. This will help sellers, intermediaries, and consumers.