How Blockchain Technology Can Change the Supply Chain Management
Blockchain technology in the technology industry is
attracting a lot of attention. Although it is not a new technology, the recent
rise of cryptocurrency has put the blockchain in the spotlight. The majority of the consensus is currently interested in the value and future of various
cryptocurrencies development that has recently unexpectedly flooded the technological
space by exploiting the benefits of blockchain development, but some visionaries have a
completely different perspective and goals.
These visionaries are not very interested in cryptocurrency
but in technology. Around the world, people are seeing the true potential of blockchain technology and are designing different ways to take advantage of, and benefit from, this new but mined technology. Supply chain management is one of these areas where the
Blockchain will certainly dominate space and change the industry.
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| Blockchain app development company in Qatar |
The difficulty with present supply chain management systems
1. Too
much-centralized information.
The main problem of the current system is the centralization
of all the data associated with it. This may seem very practical, but when
performing an inspection or monitoring, the system provides a wealth of digital
data and very little relevant information.
At the time of production, the information can be stored
digitally in an organization, but once the shipment is launched, the company
does not have the necessary terminals to search for its product. Products have
their own digital identity, but when shipped, the product as an entity is now
considered a shipment.
The different shipping agents have their shipping data,
which adds more digital information about the shipment. A multitude of data is
present throughout the process, but they implicitly do not add any traceable
relevance.
2. The game
of mediators or agents - No transparency on the different shipments
Intermediary involvement is always perceived with a
skeptical view, regardless of their benefits or process. At present, the only
way to bring all actors and entities together on a consensus to agree on valid
shared data, such as the consignee of the cargo, who is responsible for it, was
to have an entity neutral that can process the data. And report all
transactions made in the system.
The current system is entertaining limited users with roles
to play to access the particular data type that renders the system opaque at
each stage of the movement of the shipment. The end-user may not have any idea
of initializing the entire shipping process, its starting point or even
jumps. The same is true for the initialization user, who may not have the
slightest idea of the delivery process in the case where several shipping
agents are involved.
This leads to a tedious process to follow in case of discrepancies
that may occur during the shipping process. In addition, a security breach can
have a domino effect and result in huge losses. The higher the number of jumps,
the lower the overall transparency.
Blockchain to disrupt the entire
opaque system
The main advantage of the blockchain is the decentralization
of all data. All transactions can be stored and managed on different network
nodes that are updated in real-time. Transaction data is secured on the network
with powerful advanced encryption and access provided only to the relevant
entities.
Each transaction node provides evidence of how the goods
were purchased, their compliance with the regulations, all the legal work
associated with the transaction and when and how they are shipped from where
they are shipped.
Removing
agents
Blockchains enable business ecosystems that deal with
suppliers, manufacturers, distributors, partners, and end-users to share and
agree on critical information. By implementing the blockchain, they can do so
without having to name a neutral entity to handle all the complex calculations
related to trading, validating transactions according to the rules, before
transmitting critical business information. Instead of having a central neutral
entity, block strings synchronize all data and transactions on the network, and
each participant checks the work and calculations of others.
Efficient transactions in real-time & No chance for mistakes
In the regular system, each time the shipment reaches the
destination, it must be manually updated. These are the key points where an
error can occur or even if the details of the shipment are not updated at the
right time, the shipment can be seen simultaneously in two different places.
This is a major problem when several shipping agents are involved in their own
discrete and opaque systems.
With the blockchain, all connections are modernized in
real-time, all players will have access to the most advanced transactions,
reducing the situation in which a shipment exists in two separate locations.
The implementation of the Blockchain with the help of
advanced automatic QR code tracking or bar code can update the transaction
nodes for each real-time shipment and all players will be updated instantly
without any margin error.
Secure
One of the main points of every system is security, whether
financial services or any other service for which transactions play a major
role. With conventional systems, where all the data is stored and stored in a
single place or on a server, it is extremely dangerous for someone to tamper
with transactional data, which can affect current transactions and make them
useless or a problem.
With a distributed system, where all transactions are
handled on thousands of nodes, modifying a few nodes has no impact on the system
because each node validates the transactions of each. In the event of a
discrepancy in the updated records on a node, the system would isolate that
node and not allow it to make any changes to the system. Over time, this node
can be corrected and will be synchronized with the system. It will also allow
system administrators to track the disruptive node and take the necessary
action. The ability to isolate and track temperate nodes provides a
significant security upgrade over the conventional system used to manage the
supply chain.
Real-time engagement
The key to successful supply chain management is to maintain
strong and transparent end-to-end communication. With the blockchain,
transparency can be added to prove how the product was designed at the source,
how it was handled, respected the regulations reliably and in real-time.
Transparent and robust handling of all transactions and communications with
complete traceability in minutes.
Conclusion
The blockchain in supply chain management will prove itself
as a game-changer, benefiting all entities, from the source to the destination
agent. There is still a long way to go, but industry pioneers are constantly
looking for ways to address the vulnerabilities and inefficiencies of today's
systems.
About
Fusion Informatics
Fusion Informatics, leading blockchain development company Qatar,
We provide the on-demand blockchain services like private blockchain, Ethereum
development, Hyper ledger development, smart contract, solidity, Cryptocurrency wallet development, exchanges, and supply chain management. We are well aware of the
significance of Blockchain as a Service and its persuasive capability towards
the advancement of the future.
Fusion Informatics includes a group of specialists who
strive to overlook challenges in technology. We are especially concerned about
the needs of clients throughout the development process. We are the spearhead
for a variety of industries in curating BaaS that will help companies. We are
extremely motivated and dedicated to the needs of satisfying clients through
our solutions. Also, Fusion Informatics is providing Artificial Intelligence development Services in Qatar,
provides Data Science, Machine Learning, Internet of Things, Blockchain, Cloud,
Enterprise Mobility, & Business Process Automation solutions &
services.
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