How is Blockchain used in Supply Chain?

“Supply Chain is like nature, it is all around us.” 

~ Dave Waters

 

Ways in which Blockchain is revolutionizing the Supply Chain

 

There are so many new innovations in the market that aim to simplify and streamline the whole supply chain process. Blockchain is the most successful of them. We commonly associate blockchain with bitcoins and crypto related concepts that we forget the other utilities of it. 

 

Supply chain is one of those areas where blockchain is revolutionizing the whole process. It has brought the cost efficiency and traceability and transparency that the industries needed. 

 

There are so many uses of blockchain outside the realm of the financial sector, example- supply chain management process. If a company is successful in improving the transparency of the supply chain process then it can do wonders and save a lot of cost. 

 

Tremendous business can be done with absolutely nil risk or minimal risk. The whole process of blockchain in supply chain is driven in 6 simple steps which are:

 

1. Develop

2. Plan

3. Source

4. Make

5. Deliver

6. Return

 

There are some primary advantages of using Blockchain in supply chain which include:

 

• It helps to increase the tracking and traceability of the overall supply chain process.

 

• It helps prevent gray market trading.

 

• Helps keep a check on the compliance related to outsourcing and manufacturing.

 

• Paperwork is reduced substantially.

 

Apart from these primary advantages there are some other non-primary advantages of using blockchain in the supply chain which companies get once they have implemented this technology.

 

• The reputation of the company increases because of transparency. Materials, workers and every type of process involved becomes so transparent that the faith of the customers increases. This improves the reputation.

 

• All types of public risk related to supply chain malpractices are also mitigated.

 

• Stakeholders engage themselves with the affairs of the company.

 

• Due to transparency the customers develop trust. It increases the credibility and the trust that the data shared with the public is genuine and not omitted.

 

Goods like diamonds, medicines etc are of high value and involve black marketing and smuggling. But with the help of blockchain any kind of doubtful activity is immediately traced and reported. Therefore, blockchain in the supply chain is an excellent way to make the whole system transparent.

 

Also Read | Benefit of Blockchain In SCM

 

Top 6 Companies that are leading in Blockchain in Supply Chain

 

"Many supply chains are perfectly suited to the needs that the business had 20 years ago."

-Jonathan Byrnes

 

Blockchain in the supply chain is a very trendy concept and many of the global companies have already implemented it. Given below are 6 of the top companies in the blockchain supply chain industries that are globally acknowledged and have implemented this system. 

 

Also, these companies have the highest revenues in the globe when we compare them to other companies in the similar sector.

 

1. Amazon

 

Founded In	1941
Country	Washington, United States
Revenue	US$386.06 Billion

 

Amazon is one of the most famous brands in the world. It has become a leading e-commerce provider. It has been using some latest technologies like cloud computing and artificial intelligence in its operations as well. 

 

Now talking about the use of blockchain in the supply chain- Amazon has managed its blockchain in such a manner that the users and the company have been connected through a blockchain. 

 

The solutions that blockchain has provided amazon has helped it see and check all the smallest details in the supply chain. Efficient tracking systems and tracing the whole production system through automation is the best advantage amazon has over others because of its efficiency and precision.

 

2. Microsoft

 

Founded In	1941
Country	Washington, United States
Revenue	US$386.06 Billion

 

Microsoft is a big tech company. It makes computer softwares, gadgets and offers services to its customers. A very famous application application of Microsoft called Azure is a cloud based system which helps in building, testing, deploying and managing the other applications of Microsoft. 

 

With the help of Azure a big consortium network is built. With the help of blockchain all the workflows are digitized and moving all tangible assets has become a lot easier in the supply chain. With the help of Azure blockchain a number of issues in the supply chain related to fraud, efficiency and data loss have been sorted.

 

Also Read | AI In Microsoft

 

3. Huawei

 

Founded In	1975
Country	New Mexico, United States
Revenue	US$143.02 Billion

 

Huawei is one of the biggest leaders in the technology and communication sector. It makes gadgets, consumer products and offers services as well. The blockchain system of Huawei is a great example of a system which is both cost effective and efficient to use. 

 

The system is fair, transparent and aims to reduce the cost of any risk management system if ever implemented. Now in order to make the system fair Huawei has shared ledgers, decentralized systems and tamper proof data.

 

4. Accenture

 

Founded In	1989
Country	Hamilton, Bermuda
Revenue	US$44.33.06 Billion

 

Accenture is a consultancy and service provider company and offers solutions to some of the leading issues related to technologies in the global companies. The blockchain system of Accenture offers an excellent immutable trial for audits. 

 

In audit the main thing is to get a fair view through authenticity and no duplications and Accenture offers you exactly that. All documentations across the supply chain system can be authenticated via its blockchain. 

 

Then the solution it offers helps in reducing delays, errors and then improves the transactions and speed.

 

5. IBM

 

Founded In	1911
Country	New York, United States
Revenue	US$76.2 Billion

 

International Business Machine Corporation in short IBM is one of the biggest cloud platforms. The blockchain of IBM helps the suppliers in the supply chain to exchange data and be visible across all the connected supply chains as well.

 

All the protected data can be shared in this chain through encryptions and permissions. Once the business requirements are met an automatic smart contract is prepared in the blockchain. With the help of smart contracts the user can take timely actions and the visibility is also enhanced.

 

6. Oracle

 

Founded In	1977
Country	California, United States
Revenue	US$39.07 Billion

 

Oracle is the biggest DBM company. It offers both goods and services. One of its services is that it provides a supply chain with blockchain to the big companies. With the help of it, companies can prepare distributed ledgers and enter into smart contacts. 

 

The whole transaction becomes transparent and efficient. The supply chain with blockchain of Oracle consists of- Blockchain cloud, transportation management, SCM, IoT cloud and others.

 

Also Read | Blockchain in Food Industry: Advantages and Implementation

 

Different Industries Using Blockchain in Supply Chain

 

"The real competition is between supply chains, not companies." 

-Martin Christopher

 

Banking is not the only industry in which everything is becoming automated and streamlined. There are many other sectors in which blockchain is being used to enhance and improve the supply chains. 

 

Given below are 4 sectors using blockchain in supply chain which have successfully used this technology and witnessed growth.

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Different Industries Using Blockchain in Supply Chain

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1. Food and Agro

 

In food, agro, fishing as well as animal husbandry the use of blockchain can do wonders for the supply chain. There are small sellers, medium sellers and big merchants. There must be a level of trust between all of these otherwise no party will be ready to work with the other. 

 

Without collaboration this sector will suffer therefore, a strong supply chain is very important in this segment as well. Since, the number of sellers are huge, a feeling of competition is always present with a trust factor between all the suppliers this trust can be maintained throughout.

 

2. Pharmaceuticals

 

Pharmaceutical sector is not a FMCG sector. Here the goods do not move very fast. It needs to have smart contracts and fast ledgers for efficiency. Even though the pharma sector is innovating and using the latest technologies, they still lack one thing i.e. proper supply chain network. 

 

To ensure better and regulated production, remove fake products and duplicacy and improve security they need to have blockchain technology in their supply chain. It will help them trace all the medicines right after manufacturing and to all the places and sellers it reaches. 

 

The pharma sector is widespread and a blockchain ledger has the capacity to deal with all such issues.
 

3. Manufacturing

 

Manufacturing of automobiles is a huge process. It needs all types of spares and technologies and then the automobile has to be assembled and tested and then the final product is ready. All these steps need to be interconnected and coordinated. 

 

Therefore, the supply chain system has to be strong. Tracking the ownership is another area in which blockchain can help. All counterfeits can be eliminated through a strong blockchain system. 

 

The tech used in this sector has the potential to bring a change in both positive and negative ways. Therefore, proper coordination between the manufacturer and seller is important which only blockchain can offer.

 

4. Mining

 

Mining is one of those areas where blockchain is used in the supply chain. The main reason is that in this industry we need proper coordination and cooperation of the workers. 

 

There are so many intermediaries involved in mining that without having a proper supply chain this industry will submerge. Blockchain will help in tracking metals and intimate the workers about its movement from the mine to the manufacturer or the supplier. 

 

Therefore, the overall traceability of the product through different stages in the supply chain process will increase.
 

Also Read | Blockchain in Aviation Industry

 

Blockchain in the supply chain has given numerous advantages to the companies. Not only it helps in keeping the track of prices but also helps in developing a fair and transparent system so that the operations are smooth, accountable and acceptable to the users. 

 

All the bulk data that was difficult to transfer or process is now being effectively treated and turned to useful information. Most importantly, with blockchain companies can encrypt the useful information in the blockchain and give access to only those who need it. Thus, blockchain has definitely changed the whole supply chain system now.