Why Are Global Sourcing Companies Excited About Blockchain Technologies?

Many tech geeks say that blockchain will change the Internet. We believe blockchain will do more than just change the Internet, it will revolutionize global supply chain management, and we’re happy to say so. Here’s why. Blockchain enables companies to manage all kinds of transactions more securely and transparently. What does it mean for the supply chain industry? Some experts in the field say blockchain is the next best invention after the Internet, and we believe the technology will enable supply chains around the world to grow.

How blockchain technology will impact global supply chains

Imagine the possibilities if blockchain allowed us to record, monitor and confirm transactions with greater security, certainty and accuracy. Global supply chain management will evolve with the use of this technology. Think about the areas of the supply chain where pain points can occur: manufacturers, suppliers, carriers, warehouses, distributors, service providers, retailers and customers. Now think about how a technology like blockchain can alleviate or eliminate pain points from the manufacturer to the customer.

Blockchain would dramatically change the system to the point that every time an item changes hands, it can be permanently tracked and recorded on the chain. The item will have a digital data history from the manufacturer to the customer, a completely transparent series of transactions. Blockchain technology offers supply chain managers and the entire supply chain the opportunity to reduce the costs, transit times and human errors that currently plague many industries.

The Benefits of Blockchain

Let’s look at the general benefits of blockchain to better understand why this technology will permanently change supply chains around the world. Here are four of the most important benefits.

  • Transparency – Blockchain enhances the ability to record all physical touch points of a product from manufacturer to sale. This transparency builds trust and requires accountability.
  • Scalability – In a virtual world, any number of supply chain participants can participate in any number of touchpoints.
  • Security – Internal controls and audit systems can be eliminated with blockchain’s coding rules and impenetrable ledger.
  • Innovation – A decentralized architecture allows for the creation of new, unique and specialized uses of the technology.

The benefits of blockchain in global supply chain management

Many sourcing companies in the USA have started taking a close look at the technology, and blockchain could become a necessity for global supply chains. Now that you understand the general benefits of blockchain, let’s dive into the specific benefits related to the supply chain.

  • Records – The quantity and movement of items and assets such as products, trailers, pallets, containers, etc. between checkpoints or nodes in the supply chain can be easily recorded.
  • Tracking – Documents such as change orders, purchase orders, receipts, shipping notices and other trade-specific digital information are easily tracked from one entity to another.
  • Distribution and validation – Products, items and more can be easily identified as certified or validated by type or industry. For example, food products can be quickly verified as fair trade or organic without the barriers that currently slow down supply chains around the world.
  • Linking – Assign serial numbers, digital tags, bar codes, RFID, etc. to specific items or products to link between “blocks”.
  • Sharing – Streamline supply chain processes by sharing manufacturing, assembly and delivery information. Also, use the shared information to better understand, assist and improve relationships with partners and suppliers.

Need global supply chain management?

We do more than connect you with vetted suppliers, vendors and supply chain manufacturers. We are committed to the success of your supply chain and strive to make the process as easy as possible. Don’t know where to start or what needs to be asked? Contact a good procurement company in the USA today, and let them connect your supply chain and get it running at its best.

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