Blockchain technology has emerged as a transformative force in supply chain management, offering unparalleled potential to enhance transparency and security throughout the entire process. At its core, blockchain is a decentralized, distributed ledger technology that enables the recording and verification of transactions across a network of computers. Unlike traditional databases, which are centrally controlled, blockchain operates on a peer-to-peer network, where every participant has access to the same data in real-time, and any changes must be validated by consensus.
One of the key advantages of blockchain in supply chain management is its ability to provide transparency at every stage of the process. By recording each transaction or event on a block, which is then linked to previous blocks in a chronological chain, blockchain creates an immutable record of all activities. This means that once data is entered into the blockchain, it cannot be altered or tampered with retroactively, ensuring a high level of integrity and trust in the information. Enhanced transparency enables stakeholders to track the movement of goods from their point of origin to the final destination with unprecedented visibility. This transparency is particularly valuable in industries where traceability and authenticity are critical, such as food and pharmaceuticals. For example, in the food industry, blockchain can be used to trace the journey of a product from the farm to the table, providing consumers with detailed information about its source, production methods, and handling conditions. This not only helps to prevent fraud and counterfeit products but also allows for more effective quality control and recalls.
Moreover, blockchain technology facilitates seamless collaboration and information sharing among supply chain partners. By establishing a single, shared source of truth, blockchain eliminates the need for separate, siloed databases and manual reconciliation processes. Instead, all parties involved in the supply chain can access real-time data on a decentralized platform, enabling faster decision-making and more efficient coordination of activities. This transparency and collaboration can significantly reduce delays, errors, and disputes, leading to cost savings and improved customer satisfaction.In addition to enhancing transparency, blockchain also offers significant security benefits for supply chain management. The decentralized nature of blockchain means that data is distributed across multiple nodes in the network, making it highly resistant to tampering and cyber-attacks. Each block in the blockchain is encrypted and linked to the previous block using cryptographic hash functions, creating a secure and tamper-evident record of transactions. Furthermore, blockchain's consensus mechanisms, such as proof of work or proof of stake, ensure that all transactions are verified and validated by the network participants before being added to the blockchain.
Blockchain Technology in Supply Chain Management: Enhancing Transparency and Security
1. NIHAR RRANJAN ROUT
R DINESH RAO
MANAS KUMAR BEHERA
JYOTI PRAKASH DASH
BIITM BHUBANESWAR
2.
3.
4.
5.
6.
7.
8.
9. Example-(Walmart With DLT Labs)
-To help it, Walmart Canada turned to DLT Labs, a leader in developing and
deploying innovative enterprise solutions using distributed ledger technology.
-A short time later, Bison Transport, one of Walmart Canada’s carriers, joined the
team charged with developing a network.
-A pilot version, which initially just involved Walmart Canada and Bison Transport,
went live in January 2019 after being exhaustively tested. It was successful, and in
March 2021, the network, known as DL Freight, was rolled out to the 69 other
carriers.
-The system continuously gathers information at every step — from the tender
offer from the carrier to the proof of delivery and the approval of payment.
-This information is automatically captured and synchronized in real-time and is
visible only to the parties involved in the transaction.
-By all accounts the system has been a tremendous success. Prior to DL Freight
over 70% of invoices were disputed. Today less than 1% of invoices have
discrepancies, and these disputes are easily flagged and quickly resolved. Gone
are the days of payments taking weeks or months; carriers are now getting paid
