High Tech

Closing supply chain's 'hall of mirrors'

January 23, 2018

Overview

Supply chains operate like a "hall of mirrors" with billions, if not trillions, of document copies (and copies of copies) duplicated between parties. The result? Enormous complexity. Tracking, reconciling and verifying this torrent of inventory, purchases, invoices, bills of lading, shipments and receipts is hugely challenging. But there’s a solution. With blockchain strategies in place, substantial cost and efficiency benefits are achievable. And problems with reconciliation, miscommunication and poor contract enforcement can evaporate.

How blockchain will transform and simplify the supply chain

We have closely examined the benefits that blockchain brings to the supply chain. In today’s digital marketplace, they’re far-reaching and already within reach. Supply Chain leaders must act now to capture opportunities from blockchain in core areas of operations:

Removing paperwork

By using blockchain to create tamper-proof "master ledgers" between trading parties.

Creating "smart contracts"

That check when new records are written, ensure there are no out of balance conditions, and remove the existence of ‘bad’ invoices.

Having a single system of record

Replicated across all partners to a transaction, which enables the impartial enforcement of contract terms.

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Why take action now?

Even basic application of blockchain technology in supply chains can deliver major cost and efficiency benefits—from connecting with suppliers and customers to enormous reductions in transaction volumes and irregularities. Shifting to one common blockchain journal of data can provide a massive opportunity for your enterprise, and what supply chain team would want to miss out on this?