The supply chain industry is ripe for disruption and innovation, and blockchain technology is at the forefront of this transformation. As a secure, decentralized, and transparent ledger, blockchain has the potential to revolutionize the way we manage supply chain operations. From enhancing traceability and visibility to streamlining payments and logistics, there are numerous use cases for blockchain in it. In this article, we will explore some of the most promising use cases and their potential benefits.
Here are the use cases :
Supply chain Finance
Blockchain technology has become a hot topic in supply chain finance, as it offers more efficient invoice processing and secure transactions. The use of smart contracts can trigger immediate payments upon product delivery, making transactions more transparent and efficient. For instance, ERC-721 and ERC-115 are two popular blockchain standards that provide unique digital assets and enable digital ownership transfer.
Supply chain logistics can be a complex web of intermediaries, leading to friction and delays. By using blockchain technology, transactions can be verified and recorded autonomously, reducing the need for third-party entities. DHL suggests that blockchain can remove an entire layer of complexity from global supply chains.
Blockchain technology also has the potential to revolutionize supplier payments by providing fast, secure, and low-cost international payment processing services. With the use of encrypted distributed ledgers, trusted real-time verification of transactions is possible without intermediaries such as correspondent banks and clearing houses. For example, Bext360 is using blockchain technology to boost supply-chain productivity within the coffee industry by tracking all elements of the coffee trade, from farmer to consumer, and ensuring immediate payment to the farmers using cryptocurrencies.
Cold Chain Traceability
The use of blockchain and IoT sensors can also enhance cold chain traceability in food and pharmaceutical supply chains. By recording temperature, humidity, vibration, and other environmental metrics in a blockchain, smart contracts can be applied to ensure automatic redress if any readings go out of range. Walmart has successfully used blockchain technology to track the provenance and condition of pork products coming from China, and now requires its spinach and lettuce suppliers to use the technology.
Food safety is another area where blockchain can make a significant impact. By providing transparency of all product movements and statuses, blockchain within supply chain tracking can reduce the time it takes to identify and remove the source of foodborne illness. Companies like Nestle, Walmart, and Unilever are using blockchain to improve distribution network visibility and reduce the economic and reputational cost of recalls.
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