4 Ways Blockchain Technology Impacts Supply Chain Managementhttps://specright.com/wp-content/uploads/2020/09/iStock-1005771302-2-1024x696.jpg 1024 696 Specright Specright https://specright.com/wp-content/uploads/2020/09/iStock-1005771302-2-1024x696.jpg
Many companies have infused digital technologies into their supply chain management systems. From centralized data in Enterprise Planning Resource software to digital shipping systems and RFID scanning, internal intelligence has arguably never been greater.
However, companies are still limited in visibility when it comes to tracking products and components throughout the supply chain. Disparate systems and a lack of insight outside of the organization creates knowledge gaps and inefficiencies that complicate supply chain management.
As more companies and consumers are pushing for greater transparency, blockchain is providing a solution for untangling the communication threads throughout the supply chain. Here’s a closer look at blockchain and supply chain management.
1. Procurement Visibility and Savings
Blockchain’s model as a single thread of data offers companies a powerful competitive advantage in terms of procurement and securing volume discounts. With blockchain, ledgers are updated in real time, allowing you to see, at a glance theglance, the volume of a particular product, regardless of who initiated the purchase.
This visibility allows you to take advantage of volume discounts without disclosing actual volume data to other subsidiaries. Also, it removes the traditional manual approach to auditing orders to find volume discount opportunities.
2. Improved Traceability
End-to-end traceability is also more easily achieved with blockchain technology. By digitizing assets and creating a decentralized record of transactions that is linked at every touchpoint, organizations can trace a product’s journey from production to delivery, and every step in between. That data includes important sustainability information, as well as source and freshness data.
Businesses and consumers alike can benefit from this greater level of transparency. As consumers are putting more pressure on businesses to source ingredients or products from ethical and trustworthy sources, companies can better deliver on their commitment to quality and ethics with data-backed proof. Information is also readily available for sustainability claims and traceable for product recall needs.
3. Data Integrity
Data is the holy grail of effective supply chain management. Companies rely on data to gauge demand, place orders, and control costs, especially when products or materials can vary by vendor or location. When companies end up with too much inventory, it can cost them as much as 20-40% of its value per year just to hold onto it.
Master data management with blockchain technology ensures the highest level of integrity. Once an entry is created, it cannot be changed without also affecting all subsequent ledger entries. Companies can spend less time validating data and trust they have the most up-to-date information.
4. Reduced Paperwork and Admin Costs
With greater supply chain transparency, companies can organically reduce the tedious administrative costs associated with paper trails, research initiatives and data input. Assets are digitally tracked in real time, allowing companies to conduct faster, more effective audits without extensive manual labor. Exact information is also readily available for budgeting efforts and new product or product extension opportunities.
Specright’s Impact on Supply Chain Management
Specright’s data management platform leverages blockchain technology and all of its advantages to bring more value to supply chain management. By increasing visibility at the spec level and encompassing all moving parts of the supply chain, companies can improve the speed and results of their decision making and gain greater peace of mind.