A simplified explanation of Blockchain Supply Chain Management

 Looking for a simple explanation of supply chain management on blockchain ? And what can the blockchain do in a supply chain management system, in other words, how do you know that the shirt you wear, the drinks you drink and the food you buy from the market are safe, safe and not counterfeit?


A simplified explanation of Blockchain Supply Chain Management


The answer is that you don't know it, you just trust. You trust that there is no effective way to find answers to these questions. Either you sacrifice and use the products or you prefer to dispense with them.


But what if you no longer need to compromise or give up buying and enjoying the things you want? This is while ensuring safety and security! And the original 100% suitable product. This can be effectively achieved through a revolutionary technology called blockchain. Benefiting from blockchain supply chain management.

 

Blockchain supply chain management

Blockchain technology has been introduced into the world and our economic reality via the leading  cryptocurrency, Bitcoin . Although it all began with the Bitcoin blockchain, the use and application of blockchain is not limited to financial transactions only. Rather, this technology can extend to areas such as Supply Chain Management (SCM or Supply Chain Management) for various commodities and products.


This is the topic of the next lines, which discuss how to use blockchain in Supply Chain Management. But before that let's take a simple overview of supply chain (or supply chain) management in reality.


What is Supply Chain Management (SCM)?

In commerce, supply chain management, i.e. managing the flow of goods and services, involves the movement and storage of raw materials, goods under the production step, raw materials, and finished goods from the point of origin to the point of consumption.


Supply chain refers to the connected network made up of individuals, organizations, resources, activities and technologies involved in making and selling a product or service. The supply chain begins with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the final product or service to the final consumer.


Proper implementation of supply chain management can lead to:


  • Increase revenue
  • Cut costs
  • Quality improvement
  • Increase Sales
  • Accelerate production, distribution and sales...

The blockchain supply chain

Supply chain management on blockchain is the new thing in the market.

Let's start with an example. Suppose you want a rare, expensive and important drug from the pharmacy and while checking the product details, you read “Store the medicine in a dry and cool place below 20 ° C, in case of storage under different conditions it is not suitable for use”.

The blockchain supply chain


The pharmacist has taken the necessary precautions because he has suitable equipment in the pharmacy, but how do you know that during transportation or transit, the dispenser has taken all precautions? You simply don't know, and you just have to trust the process, and then you compromise and buy it. But what if the drug loses its effect due to misuse?

Well, blockchain can help you avoid this problem. Let's say you have tiny sensors in your medication package that record everything about it, right from leaving the manufacturing unit until you get your hands on it. This data is regularly updated on a shared, censored blockchain registry. This way, you can simply use your phone to scan drug details to check if it is not being kept in the desired environment at any given time.


 
As a result of the integration of the Internet of Things with the blockchain, one can verify the product and trust the pharmacist or the process is no longer required. This, of course, increases sales and also provides useful data to the manufacturer in order to optimize the transfer process and also help in continuously verifying the distributor's contract using the data obtained during the transfer.

This was a simple example of a supply chain element on a blockchain, but there are many more complex applications as well as simple implementations of the same.

Another example of improving the supply chain on a blockchain is Everledger . Everledger has created a blockchain-assisted diamond source protocol that can be incorporated into the diamond industry as a standard. Let us give this criterion the name “Everleder Satisfied”. Now, once you see a dealer selling diamonds with the "Everleder Satisfied" brand, you can use your phone and scan the diamond to see its complete history before it gets to your hands.


Conclusion: Blockchain and cryptocurrency supply chain

Although we talked mainly about the transparent side of the blockchain-based supply chain in this article, in fact, there are many uses for this technology.


 
Among the practical problems you can solve with blockchain-based supply chain management:

  • Traceability
  • Contract execution and management
  • Managing damages and disadvantages
  • Counterfeiting Control
  • Supply Chain Audit
Add to that, blockchain supply chain management is multiplying at breakneck speed. The cryptocurrency space has embraced a good number of supply chain management institutions for various uses, including:


Blockchain will not solve all supply chain problems, but it will solve the majority of them. If blockchain, artificial intelligence, smart contracts, and IoT-like technologies are combined efficiently, solutions to all supply chain management problems can be found.

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