Supply chain management is now essential component in the functioning of a business. Upgrading its efficiency leads to an upswing in business productivity and profits. Understanding the need for advancement in the sector, enterprises strive to enhance its efficiency through technologies. Internet of Things (IoT) and Blockchain are two newly flourished techs that are being looked up to for bearing the responsibility. Both technologies have showcased the capabilities that can inject automation and agility to supply chains realm.
End-to-End Real-Time Visibility
Entailment of many entities in the global supply chain makes visibility an endeavor. Currently, companies have their own data to respond supply chain disruptions but require other parties’ information as well for better response. IoT combined with blockchain can forge a framework in which IoT devices tracking the status of goods, automatically feed in the data in real-time in the distributed ledger. Entities across the network will be allowed to access this data for use. Blockchain’s will ledger record data automatically from sensors with immutability; disabling parties to tamper or enter wrong information. Overall, forging of a robust, transparent, automatic, and agile framework will take place injecting transparency and trust in the network.
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Rejigging Global Financing
Global transaction procedures are time-consuming and intricate because of the multiple levels and entities entailed. A combination of the mentioned technologies can useful for agile movement of goods cross-borders, resulting in secure, efficient, and cheaper transactions to prevent frauds through distributed ledger that is immutable. Smart contracts—a feature of blockchain—are computer programs where the terms of an agreement between two parties can be stored digitally. Payments and other transaction can be automatically executed through these contracts when a certain condition is fulfilled. IoT devices monitoring goods status can work in tandem with smart contracts to completely automate the process.
Sectors like food and pharmaceuticals have to maintain strict regulations during the supply chain to ensure that the product standards and quality last till the endpoint. IoT devices already are serving the purpose of monitoring these regulations and storing the data in the server. But the fingers point on the reliability of data for being tamper proof. Blockchain clearly patches the pitfall as the ledger is immutable and automatically records transaction data, allowing supply chain entities to prove their compliance with regulations.