Blockchain’s appliances when operating the supply chain
In the Supply Chain, the Blockchain technology allows to verify information throughout the life cycle of products between parties on Blockchain technology. In this article, Lina Network offers readers more specialized knowledge about the application of Blockchain technology when operated in the supply chain.
What is the Supply Chain?
The Supply Chain includes all enterprises involved in manufacturers, transportation and sale of products to meet directly or indirectly the consumers’ demands. Supply chain includes not only manufacturers and suppliers, but also logistics companies, retailers and its customers.
Supply Chain’s issues after Covid-19
The rapid spread of the Covid-19 pandemic paralyzed the entire global supply chain. Companies, multinational corporations are seriously facing supply shortages because the government has issued orders to limit trade between countries in order to minimize the spread of the virus.
Today’s supply chain contains complex interwoven relationships. Once there is a sudden disruption to this supply chain network, it will create a serious impact on both manufacturers, consumers in particular and the economy in general.
According to PwC’s report “Post-Covid-19: A sustainable strategy for a future supply chain“, the Covid-19 epidemic partly shows that the current supply chain situation is vulnerable to impact faults that spreadly between countries. In order to have a more solid strategy for the future, supply chain operations need a transition to a more active and comprehensive model, avoiding dependence on only one market. In fact, although only 14 out of 13 autonomous regions of China are affected by Covid-19, this has directly disrupted much of the world’s supply chain, with China accounting for 80% of the total goods’ volume exported worldwide.
Seeing the rise of online shopping, the supply chain also needs to proactively catch up with the world’s trends in the period of establishing a new normal situation by applying technology of the times into operations and supply chain management.
Blockchain’s appliance in Supply chain management
Blockchain is a technology that stores information in a one-way block chain, where all data changes are recorded in real time.
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Blockchain technology solves the lack of transparency as well as interconnection of parties, etc. of the supply chain thanks to its outstanding features.
The traceability of the supply chain
Each product that moves from one location to another will be recorded on a transparent and public ledger. When there is a sudden fraud occurring, the trackback process starts identifying the warehouse that products belong to, the date that product is shipped, the manufactures as well as the distributors, etc. All of the above information is also verified and moderated by multi different management parties to standardize the process of the entire supply chain.
The Blockchain technology also supports managing real time, which allows manufacturers when traceback fraud products to know the shipment and easily manage the status of the product.
In addition, when the product reaches the end user, Blockchain technology also allows consumers to verify information, trace the product’s origin information in detail and transparently through QR codes that are attached on the product.
Blockchain’s appliances in food traceability
Blockchain’s appliances in food traceability is considered as one of outstanding features of this technology. The planting information will be recorded when being raw materials to completed products. This information will be all integrated on one QR Code so that consumers can access all of that information.
In accompanying that, when fraud occurs and one package of product can not be delivered or returned due to the inability to prove the origin, the manufacturer can trace back the fraud at which stage to check.
Transport process control
To operate globally the supply chains, shipments need to be shipped on time or within estimated shipping times. At the same time, participants need to know complete information about each shipment’s data. That is when the real-time monitoring and management functions of Blockchain technology are promoted to minimize the possibility of frauds or risks as much as possible.
Learn more about Blockchain’s appliances in agriculture with Lina FarmTrust.