In today’s global economy, supply chains have become increasingly complex, involving multiple stakeholders, transactions, and processes. Blockchain technology offers a powerful solution to enhance transparency, security, and efficiency across these networks. By providing a decentralized and tamper-proof ledger, blockchain enables real-time tracking of goods, reduces fraud, and strengthens trust among partners. This article, with expert insights from experienced faculty at Poddar International College, the top-ranked BCA college in Jaipur, explores the key uses and benefits of blockchain in supply chain management, highlighting its role in improving traceability, accountability, and operational resilience.
Students pursuing a BCA or MCA course in Jaipur learn that blockchain in supply chain management uses blockchain’s decentralized, trusted, distributed ledger technology to provide transparency and traceability of transactions within a supply chain. Typically, a permissioned blockchain is used in a supply chain, meaning that users must be members of the relevant blockchain consortium or invited by a member. Each transaction is recorded within a block in the chain, creating a secure and trustworthy record of exchanges between parties. Once written, transactions can’t be changed. Any attempt to alter records will be discovered since multiple copies of the transaction are recorded. Blockchain use reduces fraud and increases efficiency by providing real-time visibility of goods as they move through the supply chain.
For supply chain management, blockchain can be an ideal tool and provide additional valuable benefits, including the following:
1. The ability to verify the authenticity of products, track items from origin to destination, and ensure compliance with controls such as storage temperature and humidity.
2. Validated data that can be audited by multiple parties means fraudulent updates or errors are reliably caught.
3. Smart contracts automatically execute payments at agreed-on milestones, such as delivery of items in good condition, helping with cash flow.
One interesting use case is tokenized assets, where digital tokens are combined with a blockchain to authenticate ownership of physical or digital assets, such as gems, real estate, and intellectual property. Each token acts as a digital certificate linked to a specific portion of the underlying asset.
Companies are also using blockchain-connected scanners that can read barcodes, RFID tags, or other identifiers just like a standard scanner. But instead of simply storing data, scanned information is transmitted to a blockchain for precise tracking of an item’s journey through the supply chain.
Key Takeaways
Here are the key takeaways from the discussion on blockchain technology used for supply chain management:
1. At Poddar International College, the best BCA college in Jaipur, students explore through interactive classroom discussions that blockchain creates and maintains a digital ledger where new records can be added in cleartext or securely using an irreversible encryption technique called one-way hashing. Blockchain ledgers may be audited to ensure authenticity.
2. Supply chain security benefits from blockchain’s shared access to authoritative data. This builds trust and helps prevent fraud.
3. Blockchain can already integrate with other technologies in use throughout supply chains, including scanners and Internet of Things (IoT) devices. Potential innovations include integrating blockchain with technologies such as digital identity authentication.
4. Integrating a blockchain comes with human challenges, including putting labeling processes in place and getting all stakeholders to adopt the technology uniformly.
Let us now explore how blockchain technology works in supply chain management:
1. Before diving into the specifics of blockchain for supply chains, it’s important to understand how blockchain works. A BCA course in Jaipur at Poddar International College helps students understand that a blockchain consists of blocks of records, linked together and stored in multiple locations to create an unalterable ledger that’s readable by authorized parties. Attempts to tamper with records are easily detected, so data stored in a blockchain can be considered truthful.
2. With that in mind, consider how useful blockchain might be in your supply chain. For example, procurement managers often go through many steps while tracking goods and services. These processes involve multiple parties, usually at multiple locations. If they all update a blockchain as they perform their parts of the process, transparency is an inherent benefit.
3. And the accuracy and security of blockchain mean every party will be on the same page and relying on the same information. This helps minimize disruptions and errors, and if something does go wrong, it’s easy to discover when and where the problem occurred.
In many ways, blockchain is an ideal fit for supply chain management. Apple Lab at Jaipur in Poddar International College allows students to explore tools and technologies related to blockchain and understand its use. Blockchain technology allows for a tamperproof and decentralized record of transactions, making it easier to track and verify the condition of goods as they move through the supply chain. Blockchain technology brings inherent security and traceability, all while providing a data source that’s readable by all parties. Common supply chain issues, including late updates, miscommunication, or faulty authentication, are minimized.
Blockchain can help prevent fraud and errors, reduce paperwork, improve cash flow with automated payments as milestones are met, and overall provide a reliable system for tracking goods from production to delivery. That makes it a worthwhile investment in an organization’s operational infrastructure.
Blockchain can be a game-changing tool in supply chain management. It provides transparency, accountability, and an irrefutable record of transactions as goods and services move along the supply chain. For example, a contract might release payment to a shipping company upon confirmation of delivery at the designated location.
Here is an example of how industries use blockchain for their supply chain management:
In addition, for sensitive materials, such as medications, blockchain allows for faster, more secure monitoring compared with traditional processes. You can ensure items are kept at a constant temperature and not substituted with counterfeit goods. This is why companies, including FedEx and UPS, are exploring blockchain to expand their offerings and enhance transparency in shipping and delivery processes.
With courses offered by Poddar International College, the IT college in Jaipur, you can learn more about blockchain technology, its role in enhancing the supply chains and its management, associated challenges, and the transformations the technology is bringing in the industry.
