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Blockchain for Supply Chain: Uses and Benefits

What is a blockchain and why is it useful for supply chains? When it comes to supply chain management, the blockchain can be a cutting-edge way to streamline all the moving parts, while also coordinating with multiple points of contact. The benefits of blockchain for supply chain management include improvements to security, visibility, accessibility, as well as transparency.

Why blockchain for supply chain

Before diving into the specifics of blockchain for supply chain, it’s first important to understand how the blockchain works. Simply put, blockchain consists of blocks of records on a ledger, which is audited publicly. As a result of this public record, if someone tries to tamper with, hack, or alter the ledger, it’s caught very quickly. This means that the data stored in blockchain is accessible as a single source of truth.

With that in mind, consider how effective blockchain might be when it comes to the supply chain process. For example, a procurement manager often goes through many steps and processes in trying to get a job done, which can involve multiple parties and employees, along with various locations. One single error in this intricate chain of events can often spell disaster for the entire chain.

But if you consider the accuracy and security of blockchain, every party is on the same page and relying on the same information. This helps to minimize disruptions and errors, and if something does go wrong, it can be addressed quickly.

Benefits of blockchain for supply chain

With this knowledge, we can explore in greater detail how the blockchain’s specific features can benefit supply chain management.

  • Single source of truth

    Many supply chain management solutions rely on dated technology that presents opportunities for lag time, human error, and other major problems. But the blockchain acts as a single source of truth where parties at the beginning, middle, and end can ensure that they are in sync and using the most up-to-the-minute information.
  • Verified transactions

    In blockchain for supply chain management, there is no need to use third parties, like banking institutions, to verify transactions. Because a single source of truth exists, data is not only secure, but visible to every party.
  • Traceability with permanence

    Because blockchain ledgers are permanent and unchanging, when it comes to supply chain management, any issues within the chain can be easily traced back to a single point.
  • Supply chain accuracy

    Because human error is virtually eliminated in the blockchain for supply chain management, records and everyday actions are simplified and mistakes in data are minimal.
  • Quick updates

    With any supply chain management solution, speed is one of the top priorities. And it’s the single source of truth, the blockchain is a great way to make sure updates happen quickly and smoothly. The fewer mistakes made along the way, the faster the entire process goes, resulting in the business saving more money.
track and trace for supply chain

Enterprise blockchain for supply chain management

Oracle has innovative tools to help your organization integrate the blockchain and make the most out of your supply chain management solution. Find out how Oracle can support bringing the blockchain into your supply chain process.