In business, there are no boundaries. The supply chain industry works effortlessly to ensure customers receive their products and goods. Additionally, all this is done to increase the profits and reduce wastage. To connect and conduct such operations globally, global supply chain management is needed. Moreover, to enhance efficiency and transparency, companies adopt blockchain technology. What is it and what does it entail?
What is Blockchain?
Blockchain is a technology that makes it impossible to alter the history of any digital asset. Furthermore, it encourages transparency wherever it is applied, even in a business. The benefit of blockchain technology is that the digital asset in question is decentralized and can be accessed. Moreover, there is the distribution of the assets. They are neither copied nor transferred. Therefore, this technology reduces risks, fraud and enhances transparency in a business. With a blockchain, a company can share data safely, securely, and in a way that cannot be tampered with or altered.
Importance of Blockchain in a Supply Chain
When a company or business adopts blockchain technology, some benefits can be realized. The following are some of the importance of a blockchain in the business;
- Blockchain eliminates fraud- this technology has a public ledger system that allows and enhances transparency. Additionally, the technology makes it easier to track the history behind the ownership of certain products. Therefore, there are no cases reported of fraudsters or robberies whenever a business adopts this technology.
- Blockchain helps in tracking- when there are orders made or purchased, a Blockchain can help track all that. Furthermore, the technology can help you track receipts, shipment notifications, or whenever there is an order that the client wants to be changed.
- Blockchain helps in contract dealings- a business that uses blockchain technology can have quality services and goods that are constantly available. This is a result of the entire purchasing process being automated. Moreover, there is some authenticity in the process.
8 Blockchain Startups Disrupting the Supply Chain Industry
The world is continually becoming techy with new technological inventions and innovations. The supply chain industry is not left behind either. There are blockchain startups that have been introduced in the global supply chain management that have caused a change in the sector. It is no longer time to carry the production and distribution processes manually as some decades ago. Below are 8 blockchain startups that any global supply chain management in the industry can look out for;
The supply chain is a very complex system. This is because there are numerous parties involved, such as vendors, stakeholders, suppliers, and other intermediaries. Therefore, there can be a lack of transparency in the whole process of logistics. To address this issue, blockchain startups have come in handy to make transactions easier. A perfect example of such a start-up is the Canadian RoadLaunch. It developed Factr which offers audit and settlement across different borders. Additionally, their platform integrates with a digital wallet to ensure they offer a solution to the supply chain. The digital documents and financial history provided make it possible to trace transactions and enhance transparency too.
At times, counterfeit products are not easily detected since there are many parties involved in the process of global supply chain management. To help curb this problem, Bonafi, a startup based in the US has its Crypto- Tag and a mobile app integrated with blockchain technology. The advantage of the tag is that it can be manipulated into any kind of material. Therefore, whenever a product passes through the supply chain, there is additional data recorded through the tags and onto the blockchain. When the products get to the consumers and other retailers, they are scanned to verify how authentic they are.
This German startup has a blockchain platform that provides a tracking system for cargo transportation. The customers use the tracking system to see the condition of their shipments and wherever their shipments are. Therefore, any stop or manipulation made to the shipment is tracked and recorded in the blockchain. In this way, goods can be monitored and tracked virtually.
#4. Tango Trade
This startup was founded in 2018 and has a blockchain platform that allows importers to get financing at a very low cost. Moreover, it assures the suppliers worldwide that their payment will be made. In this way, Tango Trade makes it possible for organizations and companies to serve their customers better. Moreover, they integrate data management solutions that are more secure.
The British startup connects the supply chain with blockchain technology. It ensures smart contracts so that a lot of paperwork during transactions is done away with. In the end, the payments made throughout the process are secured. Moreover, it is designed in a way that enables automation when approving documents to prevent mistrust. Additionally, this smart contract system secures all the transactions and ensures information is well passed across.
This platform ensures smart contracts in the supply chain. It uses blockchain to enhance efficiency in the processes involved in the supply chain. Also, the platform has every step of the processes in the supply chain recorded. In this way, there is improved transparency in the operations and communication, and dissemination of information is made easier.
In the supply chain, ensuring the safety and security of the parties involved is key. To provide a solution, Skuchain, a software company, uses blockchain to provide platforms where there are collaboration incentives while maintaining the security of the participants. Moreover, they do not compromise the intellectual property of the parties involved. Besides, Skuchain has developed a technology that allows the collaboration of participants without exposing their intellectual property.
SyncFab is a platform that allows for purchasing and tracking of orders. It is secured by blockchain to help in tracking customer orders. When this is done, there is transparency assured.
Blockchain has a huge difference in the supply chain industry. The importance of this technology range from tracking the processes involved in the global supply chain management, eliminating fraud to ensuring smart transactions. Therefore, any company should incorporate blockchain in its processes. What’s more, many startups offer this tech invention.