Blockchain is a distributed ledger shared among many people in a network without an intermediary. The entries in the ledger cannot be modified. One Example of the use of such technology is crypto currency such as Bitcoin. When it comes to Supply Chain and logistics, Blockchains are becoming synonymous with transparency and visibility. The new technology will revolutionize how companies expand while maintaining compliance
Supply chain involves material flow, information flow and capital flow. Supply chain is about managing the flow of goods, services, storage and movement of raw materials, product manufacturing and shipping of Goods.
One of the benefits of using blockchain in supply chain Management is it’s allowing the data to be more inter-operable so that the information and data can be shared with manufacturers suppliers and “shipping companies” easily.
Transparency in Blockchain helps reduce delays and avoid goods from being stuck in the supply chain.
Using Blockchain offers more stalability through which a database can be accessed from multiple locations worldwide. This in essence ensures that all the participants in the supply chain from manufacturers to freight Forwarders are always connected and there are no limits on the number of entries.
Benefits of using block chain in the supply chain Industry:
- Advanced inventory management
- Enhanced transparency
- Minimizing Courier Costs.
- The Ability to identify issues faster
- Keep vendors and customers honest
- Faster tracking of shipments
- Establish provenance
Logistics and Blockchain in a nutshell
The new Technology will empower Freight Forwarding companies with an incorruptible resource. As the companies expand, companies will grow more connected and contract adherence will be the norm.
“Contract Logistics Companies” stand to benefit the most from the new technology by having more transparency to the supply chain network and from the speed of recording transactions.
Blockchains will become the standard for technology use in shipping. It will give all the parties involved in a shipment the ability to access and record information such s the shipment booking, bill of lading, customs clearance and even delivery to final customer. All happening in real time. Since events cannot be edited after entry, this will ensure accuracy and timelessness.
Maintaining a supply chain with all its elements is a tedious task for small businesses, the interconnectivity of the different elements becomes more inefficient when a business grows. Block chain is a game changer when it comes to SCM