Can Blockchain Resolve Challenges Related to Product Transparency?
In recent years, many industries have considered blockchain technology to enhance the business chain’s security and limpidity net levels. However, considering today’s global economy, it is the accurate time that businesses should focus on achieving equity at every pyramid level of the supply chain—platforms like Immediate Edge trading system leverage top-notch trading tools and analysis to provide better insights into bitcoin trading to beginners. From raw material to the production level to distribution, blockchain can help trace all stages of a product.
Blockchain is now named a disruptive technology of this decade because it provides a new extent of trust between business partners and lowers transaction costs; blockchain has become very popular. Regarding supply chain management, blockchain technology offers a connecting link to solve the complications subjected to product manufacturing and its transparency. For example, the ownership of an exact product is passed down the line with responsibility, also named a chain of custody, and incurs the transfer of title.
Once a particular item departs from one of the production facilities, it arrives at another production facility, and this is known as process transferring. Whenever an individual purchases a physical product, the ownership of that product is transferred from the company to the consumer. The original merely retains the ownership title of a product until the end consumer buys it from any particular store or e-commerce website.
Supply chain management is one of the precise actions with thousands of checks and balances. To determine that products are of the highest quality, they must pass every test and inspection. In case distinct organizations and companies from different nations are involved, issues most likely occur when managing the supply chain. For example, suppose one of the organizations needs to utilize the appropriate amount of raw material for a particular item. The quality of the product will fall, and it will not pass the quality check, further decreasing productivity.
What Losses Do Companies Usually Face when They Don’t Have Any Transparency?
There are numerous ways in which companies might need more product transparency. The utilization of counterfeit goods and products that do not the quality check is one of the significant losses that companies can face without product transparency. Whenever a customer purchases an item that is not up to the market what was advertised, this type of advertisement falls under the category of false advertisement. With the help of word of mouth, the reputation of that product or company decreases. One significant loss is the high cost of making the product. The high cost of product manufacturing can be due to thousands of reasons, one of which is a lack of transparency in the production line.
is Blockchain Helpful in Product Tracing?
Undeniably blockchain first came into the limelight due to bitcoin, as people thought it was a standard technology that backs the world’s most famous cryptocurrency. However, when experts discovered blockchain, it was found that it is beneficial not only for cryptocurrencies but also for numerous other industries. For example, blockchain turned out to be the most powerful tool for managing the supply chain and bringing transparency to a company’s production line.
Rather than just providing transparency to the production line, blockchain also disintermediates third parties in the supply chain so that businesses can play on common ground. By offering a record of ownership and even the product’s origin, blockchain has a massive use case in investigating the value chains of different businesses and pointing out any counterfeiting activity. Blockchain creates an entirely valid and permanent database of every exchange in the value chain. For example, if there is a change in the recipe of a food product, then it will be updated on the blockchain, and every member of the supply chain will get notified of the change in the recipe.
What if Every Member of The Supply Chain Uses Blockchain?
If every supply chain member uses blockchain, it can do wonders in product tracing, as it will diminish numerous loopholes in the business value chain. However, adopting blockchain for everyone in the supply chain is not easy as it sounds, as only some have the capital to implicate this technology in their business. Moreover, there are still numerous regulation challenges regarding cryptocurrency and blockchain adoption. The technology promises that any individual can look at any item’s production line. Blockchain can assist in pointing out anything that has been tampered with along the way. It gives the end consumers a lot more confidence in the product and correspondingly increases the reputation of the company that manufactured it.
Jessica is engaged in brand exposure at LandscapeInsight. She brings forth content that helps both the reader and brands based on research and trends.