How is blockchain technology used in supply chain management?

To more effectively trace activities along the supply chain, interested parties can access price, date, origin, quality, certification, destination and other relevant information using blockchain.

Traceability, as used in the supply chain industry, is the ability to identify previous and current inventory locations and a record of product custody. This involves tracking products as they go through a complicated process, from raw materials to merchants and customers, after passing through many geographies.

Traceability is one of the key benefits of blockchain-powered supply chain innovations. As the blockchain consists of decentralized open source ledgers recording data, which can be replicated between users, transactions occur in real time.

As a result, blockchain can build a smarter and more secure supply chain since it enables product tracking through a robust audit trail with near-simultaneous visibility.

By connecting supply chain networks through a decentralized system, blockchain has the potential to enable frictionless movement between suppliers and manufacturers.

In addition, producers and distributors can securely record information such as the nutritional value of items, the origin and quality of products, and the presence of allergens using a blockchain network collaborative. Additionally, having access to a product's history gives shoppers more confidence that the items they are buying are from ethical producers, making supply chains sustainable.

On the contrary, if a health issue or non-compliance with safety standards is discovered, necessary action can be taken against the manufacturer based on the traceability details stored on the distributed ledger.