Abstract
With block chain technology and other technologies like AI can solve most of the supply chain management week points and make it more reliable. The”cryptocurrency” technology is alsoused by some supply chains such as VeChain,Waltonchain – Clothing Supply Chain, Ambrosus Food & Medicine Supply Chain, Modum – Pharma Supply Chain etc.The power of a block chain enabled–supply chain is that through block chains, companies gain a real-time digital ledger of transactions and movements for all participants in their supply chain network. Better visibility into procurement, more accurate and reliable data for analytics, and increased trust among all participants in our supply chain network are some of the benefits of adding block chain to our infrastructure.Integrating block chain into your supply chain doesn’t need to be very much complex.
Keywords: A block chain, a supply chain, digital ledger etc.
Introduction
In a supply chain products take a journey to the consumer. But there are a number of intermediaries involved in the process such as suppliers, shipping forwarders and carriers, customs clearing agents etc. In this process block-chain technology can provide the way to immutable storage of data that can reduce the necessity of third parties. This is helpful for businesses and consumers in a supply chain management.
How to use block chain technology
A supply chain works with products. But the products are not always reliable. Although we have no way but to trust companies and use the product. We may take another product as an alternative. Block chain technology is used in financial transactions of bitcoins. But it can be extended to supply chain management areas. As we know that a supply chain starts with a raw material and ends with finished products handed over to the consumer, block chain technology can help to inform the customer the way it reached to him, especially for costly and sensitive items. If a medicine package includes a microchip sensor (IOT chip) that recorded every environment from the departure from manufacturing unit until it is reached at consumer’s hand. And if the data is regularly updated on a shared and censorship resistant block chain ledger. This way it can be verified by a phone if the medicine was not in the required environment. With the merger of IOT with a smarter ledger i.e., block chain one can verify the sensitive product, rather than trust the seller.
Diaomond supply chain management
Everledger is using the block chain technology to handover their diamonds in a trusted and credible way.As for example, if we see a tag like “everledger satisfied”, we can use our phone to scan IOT chip for diamond history that someone is purchasing. With blockchain technology, other technologies like AI can solve most of the supply chain management week points and make it more reliable. The cryptocurrency technology is also used by some supply chains such as VeChain,Waltonchain – Clothing Supply Chain, Ambrosus – Food & Medicine Supply Chain, Modum – Pharma Supply Chain etc. [1] VeChain has one of the most impressive partnership list in the crypto industry. The network has partnered with DNV GL for certification, PWC for audit and advisory, Kuehne & Nagel for supply chain and logistics, the Chinese Tobacco Industry, and BitOcean and Fanghuwang for financial services. VeChain was launched in 2016 with functional smart contracts.[2]
The power of block chain enabled supply chain.
The power of a block chain-enabled supply chain is that through block chains, companies gain a real-time digital ledger of transactions and movements for all participants in their supply chain network. But don’t let the simplicity of the tool overshadow how transformation-able it is. With block chains, through the ability to track and manage resources at the ecosystem level, the payoff should be much greater accuracy and, from there, better forecasts, and the need for less inventory to maintain the same service level. It is putting a stop to the rogues Block chains give these supply chain networks the chance to create one shared truth without one all-powerful, centralized intermediary.[3]
Better visibility
Better visibility into procurement, more accurate and reliable data for analytics, and increased trust among all participants in your supply chain network are some of the benefits of adding block chain to your infrastructure. Integrating block chain into your supply chain doesn’t need to be complex . It’s important to clarify that the block chain isn’t merely a prerequisite piece of software to buy. It’s actually the opposite: a solution to your current fragmented infrastructure.[3]
Conclusion
A supply chain starts with a raw material and ends up with a product serving to the customer. In the middle there are many intermediaries. We usually trust the product and the company who produce the product or services.Block chain can eliminate the trust factor without actually knowing the real situation. The main purpose of using block chain is it’s security.
