Five advantages of blockchain in supply chain
Five advantages of blockchain in supply chain
With blockchain , the sustainability and security of a product can be examined endto-end , providing reassurance – from raw material to finished product .
Here are five ways in which the technology can make supply chain work better :
1 . Zoned architecture This enables those in the value chain to react to , and comply with , countryspecific regulation
2 . Stronger sustainability By closing down illegal and unethical practices , Blockchain helps industry and governments act more sustainably . The tech brings traceability , which can reduce environmental transgressions such as illegally exported timber or the environmentally unsound palm oil trade .
3 . Better ESG compliance The European Commission ( EC ) is just one of many regional political bodies looking to design and develop territorywide blockchain capabilities , compliance with which will determine how business is conducted , and by whom .
4 . Increased efficiency Supply chains can be fragmented , leading to inefficiencies . Blockchain allows data to be used in such a way that visibility is greater between the various tiers of the supply chain .
5 . Stronger financial security Payments made via blockchain can be monitored by both parties , meaning suppliers are no longer at a disadvantage in the buying process while they wait for processing . Blockchain speeds up the process , giving the parties more control and making the supply chain more robust .
supplychaindigital . com 111