Supply chains are not confined to the traditional OEM and supplier networks anymore. They have evolved into a huge ecosystem that has product variants passing via multiple channels with everyone endeavoring to work seamlessly.
A single business can deal with several manufacturers with all of them using identical supplier networks and feeding a wide distribution model range from online consignments to conventional retail stores.
The operations are also more dynamic now in supply chains making the product lifecycle shorter and with more intense ramp up and down times. With the introduction of block chain into this dynamic, supply chains stand to gain a lot.
Block chain capabilities
In spite of advanced supply chain managements applied by companies, the basic management concept has undergone very little change. All this is set to change with block chain introduction. How can companies benefit from block chain?
- With the decentralized block chain approach companies can gain an integrated global perspective and rebuild a robust supply chain management.
- You can avoid the presence of intermediary to deal with the complicated negotiations with various business transactions.
- You can avoid the intricate setting up of complex rules to ensure proper handling of confidential business information while using an intermediary.
- When you use block chains, youcan synchronize all important data and share it directly with business partners without intermediaries.
- Block chains have intensive cross checking and redundancy making them a reliable and secure financial solution.
Block chain helps connect even the remotest part of your supply chain network. It integrates your entire business governance, including the processes and transactions, into a core network. Suppliers and buyers can transact more efficiently with the trustworthy model of blockchain technology. With its high scalability and technological advantage, block chain can transform the entire supply chain management sphere.
Many businesses such as IBM, Walmart and supply chain management software developer like Syncfab have embraced block chain technology to enhance efficiency and reduce the risks normally associated with management of supply chain.
Tweaking supply chain efficiency
When block chain becomes part of the supply chain, you can do the inventory effectively with no single inventory piece existing twice in a place. In short, the product movement from manufacturing hub to end customer will be updated constantly anywhere and to everyone involved. Traceability becomes streamlined.
And the traceability does not end within the company. You can also track what your partners buy and with the block chain powered solution, you can calculate the volume from the total purchasing. Thus you can do this without breaching privacy of the individual volume of every company involved.
Block chain in a supply chain network can turn the supply chain into smart systems where supply streams are simulated virtually. Automation becomes a reality with integration of all physical processes. The entire supply chain features complete transparency and turns into an agile network. Whatever data present with your company can be distributed to supply chain members resulting in better collaboration, efficiency and productivity. Companies with underutilized capabilities and restricted marketing budgets stand to benefit hugely from this fusion.