Author: Kella Pacquiao, Philippines
Since crypto and blockchain technology step into reality, it unlocks the impossibilities that it could make into the supply business.
A clever mix of distributed ledger technology and blockchain is should be enough to make this happen.
What Blockchain is for
Supply chain is a procedure in which businesses use to produce goods and shipped them overseas and domestically for their buyers. Manufacturers, wholesalers, and retailers can use this to store their data in a secure and locked internal database.
This comes in handy when the receiver encounters an issue such as late shipment, chargeback, or canceling the order. With the supply chain, the sender doesn’t have to manually scan and look at the system data and trace it to the paper trails or any acknowledgments for verification.
But this time consuming and an inefficient process could be avoided.
An industry-wide supply chain management system is beneficial to encrypt the record. Every transaction is transparent and both parties can monitor the status of the products in the supply chain from its manufacturing until it is delivered to the retail customer.
It aims to ensure the safety and security of delivering the merchandise of retail and distribution center. It could also be a way for retailers to ensure the authenticity of the product, and if the manufacturer is authorized or not.
If the whole process is recorded in the blockchain and everyone involves in the transaction can see through it, it allows information to be carried through the chain much faster and more accurate.
It also allows trigger actions automatically such as payments of invoices with ease.
Technology is changing everyone’s lives today faster and more than we could imagine. Still, companies are looking for different methods and approaches to make it easier for both parties. Yet manually checking of papers and approving invoices are still prominent in financial estates.
The use of this new technology as an alternative to traditional currencies is slowly being accepted by many in the supply chain.
Despite the attractive perks of what this could bring to the table, important players in the industry still won’t take the leap into the crypto market because of its volatile nature.