Supply chain management is a large area that is complicated and has various challenges. Businesses in different industries have been striving hard on providing just-in-time safe delivery and supply chain transparency. Hence the need for enterprises to follow the best practices in the global supply chain has gained prominence.
The blockchain is a promising technology and has the potentials to transform the supply chain management by storing and managing the supply chain data and enable decentralized autonomous transactions. It helps enterprises to ensure customer trust and data security.
Blockchain in Supply Chain Management
A blockchain-based supply chain management can be useful as blockchain which is a distributed ledger provides a permanent record of data which includes the location, package, product, and food storage conditions too.
• Blockchain can offer services through the use of Internet of Things (IoT). Companies are creating innovative solutions that are adopting this technology to minimize the cost and improve the facilities.
• The implementation of blockchain technology is challenging for the industries as it is a bit complex, but as the innovation addresses plenty of issues in the IoT network, it’s worth all the efforts.
• The blockchain is offering a powerful tool to the companies to build and deploy IoT solutions, and also provides enhanced versatility, security, and efficiency.
The amalgamation of blockchain and IoT helps the industries ‘delivery speed and cost savings across a variety of applications.
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Blockchain and IoT for Supply Chain Management
IoT and Blockchain can transform the supply chain management. The transportation process works with multiple sensors which track things like location, delivery stages, food storage conditions and blockchain also resolves the issue of intermediaries.
Blockchain offers an immutable digital data record, where all the details regarding the IoT devices are recorded and saved in the history which helps the concerned authority to find any piece of information, for instance, any date of the product, its registration and when was it sold. Moreover, blockchain is built on cryptographic algorithms designed to prevent data distortion. These blocks are linked to the previous block, thereby making it difficult to substitute an intermediate block in the chain.
IoT can also leverage smart contracts which are an online agreement amid the parties, where the terms and conditions are written on the lines of code. Thus, companies receive an independent functioning of smart devices without any centralized authority. Also, be removing the paperwork across various situations, which includes cross-border shipping, transaction records, data flows, blockchain and IoT have also contributed in saving labor costs and ensures data protection.
Customers look forward to good transportation and fast delivery thereby forcing companies to enhance their supply chain traceability. Blockchain also offers cloud services which allow businesses to reduce the complexity required to integrate and maintain IoT solutions. Blockchain and IoT are promising technologies and are revamping the supply chain management by enhancing the security, speed, and efficiency across a wide range of applications and they also minimize fraudulent activities.