How a Blockchain Can Add Value To a Supply Chain and Build Customer Trust
What if you could build a new business model for collaborating more efficiently with your partners? A blockchain is a new type of database. Today, companies and businesses around the world are having strong walls around their data and hence, sharing those data can be a very costly proposition, especially with the security protocols in place. Using a blockchain, one can easily create a reliable network which allows the distribution and sharing of data.
For beginners, blockchain is a new kind of database! It is very secure and completely leak proof! Instead of a central management, the entire structure of the blockchain is distributed. The distribution spreads between multiple parties. Each party has its own copy of the database which can be used to verify sovereignty and conduct transparent audits. The parties can trace the data which simplifies the entire process. This ecosystem builds a trust network especially in supply chains where it is important to establish quality work practices and trace a product’s history through back calculations.
Blockchain has found adaptation in several manufacturing industries where blockchain is used to store
- Raw material information
- Stock information
- Production data
- Vendor information distribution information
- Finished product data
- Buyer/seller agreements
The next big step or the next important phase of the distribution network involves the logistics and delivery. In case the products are part of an e-commerce ecosystem, then the shipments have to be tracked till it reaches the customers. Blockchain takes responsibility of tracking product delivery shipments to the end users. In case a dispute arises with a particular product, the entire production history can be back traced using the blockchain. These advantages make it one of the most potent platforms for the manufacturing industry.