Blockchain Technology for Supply Chain Management: Enhancing Transparency and Efficiency

Abstract

The innovation of blockchain technologies into supply chain management is incremental by nature, attending to waste aspects and issues that are very old within SCM. As such, this reflection seeks to highlight the multifaceted benefits of blockchain in enhancing simplicity, traceability, security, and efficiency within supply chains. Blockchain provides a decentralized, permanent system of record that allows trust and honesty between partners; all valuable information is recorded in an imperishable way. Moreover, intelligent contracts mechanize some forms involved in supply chains, such as the processing of payments and inventory management, which reduces to a large extent not only regulatory costs but also human error. The high level of security measures is ensured by blockchain’s ability to encrypt this data and thus ensure information availability in case of sophisticated cyber threats. Such improvement in security reduces extortion and tampering, providing a more secure supply chain. This innovation further simplifies the administrative compliance, providing an accessible, verifiable record of each exchange. Not only this, but it also offers a way to verify whether material sources and technical support standards meet prevailing standards, thereby promoting brand identity to customers for the brand marked on a product and enhancing customer trust in a brand.