Using Blockchain Technology To Manage Supply Chains

Due to its inherent transparency and security features, blockchain technology has emerged as a quite adequate solution to manage supply chains. In this video, we explain how everything works and how smart contracts are involved in the entire supply chain management process.

HOWEVER, blockchain will  NOT REVOLUTIONIZE supply chain on its own. It requires additional technologies and comprehensive process change. 


how smart contracts can transform supply

chains let’s imagine you decide to

purchase a new computer however in this

case let’s also imagine you’re concerned

about the working conditions in the

factory where the computer was assembled

or maybe you have a concern about the

quality of a specific component inside

the computer right now there’s no easy

way to check where your computer came

from and how it got made the complex web

of relationships that provide the

materials manufacture the components

assemble the parts and deliver the

computer to market is known as the

supply chain hundreds of years ago

supply chains were fairly simple minds

and farms provided natural resources to

skilled craftsman like blacksmiths and

tailors who then created and sold

finished products today’s supply chains

are much more complicated fragmented and

difficult to understand hundreds or even

thousands of suppliers all around the

world contribute to make and ship the

computer you just purchased most of the

time the various companies don’t know

about each other and as a consumer you

likely don’t know anything about how

where when what under what conditions

your computer was made this isn’t just a

problem for consumers today’s supply

chains are so complex that even Apple

Dell or HP has difficulty tracking how

their computers get made

smart contracts could make supply chain

management simpler and more transparent

the idea is to create a single source of

information about products in a supply

chain bar a global ledger each component

would have its own entry on the

blockchain that gets tracked over time

both liest companies could then update

the status of a component in real time

the end result is once you receive your

computer you could track every component

back to its manufacturer theoretically

you could trace the supply chain all the

way back to the mines where the raw

materials came from companies can also

use the blockchain supply chain as a

single source of truth for their

products they can manage and monitor

risks within the supply chain ensure

quality of delivered parts and track

delivery status of all this additionally

companies can use smart contracts to

manage and pay for supply chains

autonomously for example a chip

manufacturer could be paid immediately

upon testing of each individual chip at

the assembly facility this would reduce

the need for large contract invoices and

the back-and-forth of refund requests

for faulty components those same smart

contracts could assist with shipping and

logistics tracking valuable products as

they travel around the world

using blockchain companies can finally

have a complete picture of their

products at every stage in the supply

chain bringing transparency to the

production process while reducing the

cost of manufactured goods