What Is Blockchain’s Significance In The Supply Chain
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What Is Blockchain’s Significance In The Supply
 Chain
Blockchain technology and supply chain management is a kind of dynamic duo. 
Blockchain provides a lot of advantages in every field. The demand for 
blockchain professionals is increasing day by day. There are various ways in 
which blockchain technology is beneficial for the supply chain industry. Today, 
several organizations are purchasing blockchain innovation for their day to day 
operations.
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 One of the latest technologies to affect supply chain management is blockchain. 
There are many websites that provide blockchain courses. Here in this blog, we 
will discuss how blockchain is influential in the supply chain process.
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What Is Blockchain Technology?
Blockchain is basically a chain of interconnected blocks. Each chain of blocks is 
connected with the previous block through hash functions. These hash functions 
are based on cryptographic techniques. Hence, it is almost impossible to make 
any alterations in the entire structure of data. It is a stamped series of fixed 
records of information that is handled by a cluster of machines. This technology is 
based on a distributed ledger technique. The digital assets in blockchain are 
distributed in nature instead of transferred or copied. It provides real-time access.
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What Is supply Chain Management?
The management of the supply chain consists of combined planning and 
implementation of processes within the chain. The product goes through a lot of 
mediators or processes such as people, information, organizations, resources, 
and activities. These procedures comprise capital flow, information flow, and 
material flow. .
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The conduction of information flow, service flow, and goods flow consist of the 
storage of buildings, raw ingredients and finished products from one point to 
another point. This flow of conduction is known as the supply chain. Supply chain 
management enhances the quality of the end product and increases the sales 
target.
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Importance Of Blockchain In Supply Chain
As the production procedure becomes more complicated, the supply chain 
becomes more inefficient. There are several problems associated with complex 
supply chain processes.
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●  The main risk of running a complicated supply chain procedure is corruption
●  It becomes difficult to track the manufacturing process
● Cost is one of the major problems with the traditional supply chain process. 
There are four types of costs included in the complex supply chain. These are 
quality costs, transportation costs, procurement costs and inventory costs.
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The traditional system of supply chain processes is outdated. This is where 
blockchain technology comes in. The three characteristics of blockchain platform 
that will change the process of a traditional outdated supply chain are listed as 
below
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●
 Immutable
● Decentralized in nature
● Transparency
Hence, blockchain plays a crucial role in the process of supply chain 
management.
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How Blockchain Will Transform The Supply 
Chain Sector?
The main issue with traditional supply chains is that all the procurement managers 
and distributors become their own group of information. There is no guarantee of 
authentic data in the old supply chain process.
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However, blockchain technology breaks down this concept of own group 
information. The three characteristics of blockchain make an ideal mechanism to 
use for disruption of the supply chain sector. The changes made in transactions 
are documented in the blockchain. This will generate a real-time history from the 
production process to sale of the end product. Hence it decreases human errors 
and time delays.
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Blockchain innovation can enhance the following operations of supply chain 
management:
●  Real-time tracking of all orders like change orders, purchase orders, trade 
details and receipt details.
● Blockchain can connect several physical orders to barcodes and serial 
identifications.
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●  This technology can keep the real-time recording of the product details such 
as quantity and transfer of items.
● Blockchain can reduce the overall cost of the product by real-time tracking in 
supply chain management.
● Blockchain can ensure the verification process of the product’s certification.
 
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●  This technology can keep the real-time recording of the product details such 
as quantity and transfer of items.
● Blockchain can reduce the overall cost of the product by real-time tracking in 
supply chain management.
● Blockchain can ensure the verification process of the product’s certification.
 
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Summary
We hope that this article helped you to find the answers you were looking for. It is 
concluded that the supply chain process and blockchain innovation were 
assembled for each other. All the defects of the traditional supply chain process 
can be solved with the implementation of blockchain.
If you want to learn more about top blockchain online Degree, you can check 
out the Blockchain Council website.
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Blockchain Council Certifications
You can check out our certifications, and kick start your career in the Blockchain 
space today.
● Certified Blockchain Expert
● Certified Blockchain Developer
● Certified Smart Contract Developer
● Certified Solidity Developer
● Certified Ethereum Developer
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THANK YOU!
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You can mail us at
[email protected]
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