How Is Blockchain Technology Used in Supply Chains and What Are the Benefits?

Quite often, new technologies will be introduced that help businesses in many ways. Whether they help make marketing easier, lower production costs, or make it easier to reach a larger customer base, technology can be introduced into many elements of different businesses to help make things more efficient. An example of this is blockchain technology, which is a database or ledger of transactions that allows for the secure recording and sharing of data.

Looking into whether or not to employ blockchain technology to benefit your supply chain? Read on for more information on how blockchain can benefit your business’s supply chain and why you should look into using the technology yourself.

Benefit One: Transparency Within the Network

One of the clearest benefits of using blockchain technology for your supply chain is the ease with which you can access—if given permission—all ledger activity. This can be helpful to businesses who have outsourced sellers or clients who prefer to see what is happening and when, and as the one with the technology, you can control who all has access to it as well to continue to keep the data safe and secure. With the blockchain’s technology, you can also increase the traceability of the supply chain activity, making it easier for you as a business owner to know where all aspects of the supply chain currently sit.

Benefit Two: Reduced Administration Costs

One of the greatest benefits of blockchain technology in your supply chain is how it can help lower administrative costs. With less paperwork and an integrated system in your supply chain to keep track of your economic data, there is less need for administrative duties as the blockchain will keep track of the data for you.

Benefit Three: Lower Possible Instances of Loss

With blockchain technology in your supply chain, there is less of a chance of counterfeiting and gray market trading happening. Keep your customers and everyone involved in your business’s data safe, and make certain your customers get your business’ amazing services and products instead of possible fakes. This is very important for systems with marketplaces and has been implemented by other larger businesses, such as Amazon. Modern supply chains require modern technology to thrive, and blockchains are the perfect solution to such a problem.

To Summarize

Technology is constantly evolving, and businesses can use new technologies to become more productive and focus more on getting their services and products to their customers than bookkeeping through using blockchain technology for the supply chain. Smaller businesses can keep an eye on how larger businesses are using blockchain technology to see how it can benefit their own business, and begin experimenting with implementing it into their own supply chain.

Want more information on blockchain technology and other technologies businesses can use to improve their profits and overall business models? Then subscribe to Muraly’s blogs today, and reach out to me through my website or my social media.

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