Ten benefits blockchain brings to supply chains

Blockchain technology makes supply chains and sourcing more transparent, secure and efficient, and also reduces the risk of unknown ESG transgressions

Supply chain advantage of blockchain: 10. Increases security

Blockchain tech prevents important regulations being bypassed through its rogour in closing loopholes. Examples include protection against data tampering, and the creation of ‘ghost employees’. Blockchain can create a transparent audit trail of actions that cannot be manipulated.

Supply chain advantage of blockchain: 9. Sustainability 

By closing down illegal and unethical practices, Blockchain helps industry and governments act more sustainably. The tech brings unparalleled traceability which can help reduce environment transgressions such as illegally exported timber, or environmentally unsound palm oil trade..

Supply chain advantage of blockchain: 8. Objectivity

Blockchain tech makes decisions based on objective data. This eliminates human input that is based on ulterior motives like maximising profits. For example, the decision to fell or not to fell an individual tree will be based on verified data, rather than by distorting important - and more expensive - practices such as environmentally sound felling.

Supply chain advantage of blockchain: 7. Transparency

With blockchain, the sustainability and security of a product can be examined from end-to-end, providing reassurance - from raw material to finished product. 

Supply chain advantage of blockchain: 6. Cross-border compliance.

Zoned architecture enables those in the value chain to react to, and comply with, country-specific regulation.

Supply chain advantage of blockchain: 5. Ease of adoption. 5. The pressure to move to net zero is immense, and blockchain is a way to speed up the process of becoming more sustainable. This includes the rate at which businesses can enact change, as it streamlines the route to wider sustainability.

Supply chain advantage of blockchain: 4. Consumer confidence

Blockchain enables companies to identify the provenance of raw materials, and whether the supply of a product has violated ESG guidelines - so protecting businesses from reputational damage. 

Supply chain advantage of blockchain: Political compliance. 3. The European Commission (EC) is just one of many regional political bodies looking to design and develop territory-wide blockchain capabilities, compliance with which will determine how business is conducted, and by whom.

Supply chain advantage of blockchain: 2. Increased efficiency.

Supply chains can be fragmented, leading to inefficiencies. Blockchain allows data to be used in such a way that visibility is greater between the various tiers of the supply chain.

Supply chain advantage of blockchain: 1. Financial security

Payments made via blockchain can can be monitored by both parties, meaning suppliers are no longer at a disadvantage in the buying process while they wait for processing. Blockchain speeds up the process, giving the parties more control and making the supply chain more robust.

Share

Featured Articles

GlobalWafers pauses US chips plant over Congress inaction

World’s third-largest semiconductor-wafer manufacturer GlobalWafers 'pauses plans for new US plant' until Congress makes $52bn available through CHIPS Act

Capgemini in cybersecurity warning on smart factories

Report from multinational consulting firm Capgemini shows Industry 4.0 tech is leaving smart factories open to cyberattack, & that action urgently needed

St Guys NHS Trust procurement head on health supply chains

Procurement & Supply Chain LIVE: The Risk & Resilience Conference welcomed Guy's & St Thomas NHS Trust Procurement Director David Lawson as a speaker

Global logistics round-up: air, sea, road and rail news

Logistics

Asia holds key to future success, McKinsey tells CEOs

Digital Supply Chain

Dynamic data key to unlocking supplier value - TealBook CEO

Procurement