Managing supply chains- from sourcing to service- is complex and interconnected. It involves a number of stages, spans multiple geographic locations, and several invoices, and payments. The more stages are involved in the process, the more complex and opaque it becomes. In order to address the issue, Blockchain supply chain solutions have emerged as the game-changer. The technology has the potential to transform the supply chain and logistics industry with its immense capabilities.
According to a report, the global Blockchain technology in supply chain management was worth around $262.9 million in 2021 and is projected to reach $3153.7 million by 2028, at a CAGR of 51.3 percent between 2021-2028. The stat highlights the bright future of Blockchain in the supply chain. In this blog, we will delve into more knowing- Is there a need for Blockchain supply chain solutions?
The following are the key challenges in the existing supply chain industry that need to be addressed with a unique solution.
As we have discussed above, the supply chain is a complex and multifaceted network that involves a number of stages and multiple stakeholders. Tracking the movement of goods and identifying the loopholes throughout the traditional supply chain model is difficult. Not only this, but the lack of transparency leads to inefficiencies, increased costs, delays, and revenue loss.
Counterfeit products are a universal problem that poses a significant threat to many industries. Besides losing billions of dollars annually to counterfeit products, the risk to public health & safety is a major problem that needs to be addressed. The total amount of counterfeit goods sold each year is around $1.7 trillion to $4.5 trillion (estimates may vary), and is also responsible for 2.5 million lost jobs annually. The stat is evident of how serious the counterfeiting problem is in the supply chain.
When it comes to supply chain, particularly, logistics and inventory management involve a higher cost. Traditional supply chain transactions involve a number of intermediaries which somehow increases the transaction costs. Reducing the cost without affecting the efficiency and quality of the supply chain management is a key challenge for several organizations.
Streamlining supply chain operations is the priority of companies as inefficiency throughout the process can result in major revenue loss and waste. Low-tier suppliers can face massive bottlenecks and delays because of inefficient supply chain management. Reaching out to the Blockchain supply chain development company would be an ideal move to boost efficiency in supply chain management.
The data in traditional supply chains can easily be altered or manipulated at various points, leading to unauthorized changes to transaction records, or fraudulent activities. The traditional supply chain data can easily be modified which can result in a significant revenue loss and misuse by hacktivists.
With widespread use cases in several sectors, the impact of Blockchain supply chain software development is gaining more attention. Experience the untapped potential of Blockchain to tackle the long-standing issues including inefficiencies, lack of transactions and traceability, integrating the technology into the operations.
Blockchain supply chain solutions are well-renowned for providing maximum transparency. Blockchain is a decentralized, secure, and transparent ledger that enables real-time tracking and monitoring of goods throughout the supply chain. Such a level of transparency helps identify the bottlenecks and inefficiencies and at the same time, ensures compliance with regulations and industry standards. The greater transparency in the supply chain also builds trust among partners which further reduces the risk of disputes.
Increased traceability is another advantage of Blockchain supply chain software development. Blockchain allows you to create an immutable record of supply chain transactions, ranging from the raw material used in manufacturing to the final product. It prevents counterfeiting and maintains the product’s authenticity and safety. Product safety is critical in every industry, especially in food and pharmaceuticals. Blockchain supply chain solutions ensure the final product is authentic and safe to consume.
Blockchain helps streamline the supply chain operations, reduce the paperwork, and minimize the intermediaries’ needs which reduces the cost to a great extent and increases efficiency. Smart contracts are self-executing agreements that mention specific terms written into lines of code. By incorporating smart contracts into the supply chain, When smart contracts will be integrated into the supply chain, it will automate inventory management, payments, & other supply chain operations.
Besides reducing the cost, Blockchain also plays a crucial role in enhancing the efficiency of supply chain management. Blockchain supply chain solutions automate the processes through the use of smart contracts that reduces delays, bottlenecks, error, and other inefficiencies in the supply chain.
Blockchain is a decentralized, tamper-proof, and secure ledger that prevents fraud, hacking, and other security vulnerabilities in supply chain management. Blockchain supply chain solutions enable secure and transparent information sharing and conducting transactions among supply chain partners. The immutability feature reduces the risk of fraud or cyber-attacks. Besides, Blockchain supply chain solutions also build trust among industry partners and ensure supply chain integrity.
Blockchain improves supply chain management, overcoming the challenges manufacturers, distributors, or business owners face. No matter whether it is related to costs or efficiencies, security, or transparency, Blockchain supply chain software development can address the most pressing challenges facing the industry. If you want to incorporate the Blockchain into your existing supply chain management system, connect with Antier- a leading Blockchain supply chain development company.
Antier is a renowned name in the crypto space, specializing in creatine Blockchain supply chain solutions that enable greater transparency, traceability, and security in supply chain operations. Backed by talented Blockchain minds, our technical pre and post-implementation support can help you lead the market with streamlined supply chain operations.
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