Blockchain has turned out to be need of the hour for supply chain management as it acts as a ledger or record book which records the data of transactions (like amount, date and time of transaction) and rather than saving it centrally, it duplicates its copies to multiple systems around the globe, making it untraceable. As blockchains replicate the record, every client involved in the transaction receives the same copy, making the transaction smoother and satisfying. Decentralized recording of the ledger in blockchain makes the process a whole lot transparent, with every party being able to keep a check on the records.
When discussing blockchain for logistics companies, transactions are not the only record that need maintenance. Multiple records of shipment, delivery, warehousing, and supply of product demand maintenance as well. For a smooth flow of goods and services, there are few things which are important. It requires efficient movement and storage facilities for raw materials and updated inventories. This entire process is known as supply chain management which involves detailed planning, execution, and monitoring of each decisive step to ensure effortless functioning from the point of origin to the point of consumption. Information gets stored in blocks of data that are “chained” together which helps as a solution for logistics. Using data from a blockchain, the network members can check the block of the transaction, creating a transparent and efficient system for managing all the documents and transactions involved in the logistics and supply chain process.
The trucking industry, for example, uses the blockchain for supply chain management readily due to its reliability. The blockchain encryption provides safety from threats such as theft, ransomware, corruption, premium fees and provides real-time tracking.
Many might think that the system, being in the public domain, is prone to manipulation. The truth, however, is otherwise. The blockchain solution for logistics companies copies the ledger to millions of systems around the globe, so if someone tries to exploit the algorithm, he must change the algorithm of encryption in every system it is copied on. That is not physically possible, hence, securing the records of your supply chain management from every end.
While multiple forms of blockchain algorithm exists as a solution to logistic companies’ bookmaking (public blockchain, private blockchain, and hybrid blockchain), there still exist some complications in using it. But one fact is clearly established that blockchain can transform supply chain industries. While more and more companies are adopting blockchain solutions, many are yet to do the same.