8 Ways Blockchain Can Help the Supply Chain

In the world of business, the supply chain is the lifeline to the outside world. The supply chain is what ensures the product getting to market in a timely fashion. Without a dependable supply chain, there would be no product on your grocery shelves when you shop. The entire economy which is dependent upon the exchange of goods and services would come to a grinding halt.

Every few years, there are always improvements to the supply chain in some form. Whether it is due to improved business practices, new laws enacted, or technological breakthroughs, the results are the same. The Internet has been a welcome addition and improvement to the supply chain in the last 20 years with virtually all business being conducted wholly or in part online. The Internet and the rapidly changing landscape of modern computers have delivered the latest improvement to the supply chain and that’s blockchain. Blockchain has delivered in so many ways to improve the supply chain process through various means and we’ll look at them below.

In the days of old, paying suppliers was an onerous task which required banks and wire transfers. Especially if the recipient was in a different country and used different currencies. Exchange rates had to be factored in and sometimes transfers took a week or longer depending on a multitude of things.

With Blockchain, companies can now transfer funds globally no matter where they happen to be or where the recipient is. All of this is done without the use of banks as the Blockchain process ensures complete security and confirmation of funds and confirms every step of the process digitally. Tomcar, an Australia-based vehicle manufacturer, uses this process to pay a portion of its suppliers via BitCoin, a blockchain-based cryptocurrency that is widely used worldwide.

The Blockchain process extends to the food industry with the ability to track items individually from the source. Walmart uses this process in many different types of food including Pork sourced from China. In a recent e-coli health scare, Walmart was able to track shipments of produce directly from its origination point and pull that product from the shelves until the true source of the contamination could be verified. Other major companies such as Tyson, Dole, Nestle, and Unilever also utilize the blockchain to keep tabs on their products in much the same way.

This ties in a little with the food safety angle above as it always entails a tracking process. This is more for the consumer’s benefit as consumers can track the production process and know where their products are sourced from. This is key for products that could be sourced unethically and may cause consternation from the consumer base.