Blockchain for Supply Chain Transparency

Enhanced Transparency and Visibility

Blockchain’s distributed ledger provides all participants in the supply chain with access to the same information, thereby reducing information asymmetry and enhancing transparency.

This shared visibility helps prevent unethical sourcing, shipping delays, and inadequate storage or distribution.

Improved Efficiency and Trust

By utilising blockchain, supply chains can see improved efficiency through faster transactions and reduced need for intermediaries.

Trust is bolstered among all stakeholders due to the immutable nature of blockchain records, ensuring that data once entered cannot be altered fraudulently.

The Role of AI and ML in Modernising EDI

Artificial Intelligence (AI) enhances EDI systems by automating complex data processing tasks, such as order processing and invoice reconciliation, thereby reducing manual errors and improving operational efficiency.

AI’s predictive analytics capabilities enable the forecasting of supply chain disruptions before they occur, allowing businesses to take preemptive actions.

Machine Learning (ML), a subset of AI, further refines this process by analysing historical data patterns to improve the accuracy of future predictions.

This capability is crucial for optimising logistics operations, ensuring timely deliveries, and minimising costs, thus making supply chains more resilient and responsive.

Counteracting Counterfeit Goods

In industries like pharmaceuticals, blockchain can be instrumental in combating the distribution of counterfeit medicines by enabling the tracking of medications throughout the supply chain with individual serial numbers.

This capability not only helps in identifying points where counterfeit products could enter but also aids in efficient recall of medications, ensuring patient safety.

Streamlining Payments

Blockchain enables more efficient payment systems within supply chains.

Smart contracts can automate payments upon fulfillment of contractual conditions, reducing the time and costs associated with traditional payment processes.

Increasing Data Transparency

While blockchain inherently offers full transparency, adjustments can be made to balance between transparency needs and the confidentiality of sensitive data.

This balance ensures that while stakeholders can access necessary data for trust and collaboration, the confidentiality of processes and sensitive information is maintained

Certification and Chain of Custody

Blockchain provides a secure platform for the certification of products such as organic or fair trade items.

It allows for the verification of certifications and an uninterrupted chain of custody from raw materials to end sale, enhancing consumer trust in product authenticity and ethical production practices.

Conclusion

Despite these benefits, the adoption of blockchain in supply chains also faces challenges, including the need for significant technological and operational adjustments, the requirement for stakeholder buy-in, and concerns about data privacy and confidentiality.
However, the ongoing development and implementation of blockchain projects in supply chain management by leading companies highlight its potential to address some of the most pressing issues in supply chain transparency and efficiency.

References

Deloitte United States. (2024). Using Blockchain to Drive Supply Chain Transparency.
https://www2.deloitte.com/us/en/pages/operations/articles/blockchain-supply-chain-innovation.html

IBM. (2024). Blockchain for Supply Chain Solutions.
https://www.ibm.com/blockchain-supply-chain

Amazon AWS. (2024). Blockchain for Supply Chain: Track and Trace.
https://aws.amazon.com/blockchain/blockchain-for-supply-chain-track-and-trace/

Built In. (2024). Blockchain in the Supply Chain.
https://builtin.com/blockchain/blockchain-in-supply-chain

MDPI. (2024). Blockchain Integration with Supply Chain: Overview on Data Transparency.
https://www.mdpi.com/2305-6290/5/3/46

Provenance. (2024). Blockchain: the solution for transparency in product supply chains.
https://www.provenance.org/news-insights/blockchain-the-solution-for-transparency-in-product-supply-chains