Blockchain is an immutable ledger, a mandate necessary for improving supply chain security with its complex tiers of operations. There is always a concern about data theft, exploitative behaviors, and compromised sensitive information. The supply chain requires enhanced data integrity to win the trust of stakeholders and consumers. There is a tremendous possibility of improving efficiency and tracking.

The value of a supply chain retailer increases significantly with the adoption of blockchain, be it public, private, or hybrid. This adoption brings traceability, transparency, and accountability, effectively combating counterfeiting, illegal activities, wrong labeling, and fraud. Blockchain technology has demonstrated its authority in cross-border logistics and overall logistics management. The shared IT infrastructure enhances security and transparency, enabling cost-cutting in the supply chain infrastructure.

Blockchain Integration Enhances Supply Chain Optimization

Blockchain’s decentralized nature is a game-changer, offering unmatched transparency and traceability to the supply chain. Every transaction is meticulously documented, there is a clear record of change in ownership, and an auditable track of all activities. This technology surpasses all its counterparts by providing authentic and uncorrupted information about items, a feature that sets it apart and makes it a superior choice.

Brands offering seafood are often challenged for printing the wrong dates on the packaging. Blockchain documents the exact day and date of procurement from the unit, making the supply chain of seafood products fraud-free, with real-time visibility. Some of the tangible benefits of blockchain in supply chain optimization are—

• Improves Efficiency- In the traditional supply chain model, there are too many manual entries and record keeping. This affects the credibility of the supply chain, but blockchain integration gives a decentralized and transparent ledger with real-time visibility and accessibility by all the concerned parties. Blockchain has smart contracts that allow automated features with a defined set of rules and policies for intelligent automatic activation of supply chain operations. Like automatic payment settlements, verification compliance, and prompt actions booted into the system by the situation. This reduces errors and expedites the whole process of order fulfillment. For example, when a seafood cargo reaches a destination, the date and time feature is automatically activated; this reduces delays and other administrative work.
• Improves Trust- Blockchain authentication increases user security and hence trust. It verifies user identity before accessing resources connected with digital currency or transactions. Any supply chain contains a vast trial network comprising logistics, inventory management, warehouse, order delivery, and several other stakeholders responsible for the completion of the process. They all demand transparency in operations and visibility to curtail fraud and inefficiency, which are known for slowing down the process. IoT in the Supply Chain, paired with blockchain technology, time-stamps each transaction and creates an auditable trail of impenetrable events. This shared tamper-proof network increases trust among the stakeholders and other participants.
• Reduce Risks- The supply chain encounters significant risk factors in cross-border logistics for distribution, sourcing, and transportation. Blockchain supports tracking and verifying at every step through a distributed ledger. The controlled access to information eliminates risks involved with cross-border logistics, such as policies, any unauthorized changes or tampering with data, or any impending transportation delays due to changes in rules and regulations. For example, the Food Industry, which requires visibility and traceability, benefits a lot from blockchain. Information about the freshness of leafy products can be uploaded as pictures and dates. This reduces the chance of fraud or tampering with information.
• Enhances Collaboration—The Supply chain has multiple operations, and several parties are involved, such as manufacturers, dealers, suppliers, packers, 3PLs, and more. The decentralized network helps with collaborating with all the participants. For example, blockchain allows real-time visibility and tracking of inventory, which optimizes inventory management and demand forecasting.

Practical Use Cases of Blockchain Technology

• 1. Inventory Management: IoT in the Supply Chain with sensors and other tracking devices allows real-time visibility into data recorded in the blockchain. The immutable ledger makes monitoring inventory levels, location, and other specifics accurate. This eliminates the risk of overstocking and stockouts. The transparency offered by the technology presents a successful use case of blockchain in inventory management. Traceability of items removes inefficiency and inaccuracy, which can create problems for the supply chain.
• 2. Tokenization in Supply Chain: Each item is assigned a token that allows blockchain technology to identify, trace, and bring transparency. Tokenization and blockchain technology are very resourceful in bringing transparency in logistics, especially cross-border logistics. It builds a secure network of trust between all the stakeholders. Blockchain technology has proved beneficial in constructing an empire of global trust and has resolved logistics problems for several retailing businesses. The seafood industry can win the trust of cross-border customers due to blockchain technology and tokenization, as it provides real-time visibility and better transparency over a secure network.
• 3. Smart Contracts: Blockchain supports a self-executing agreement system. It has pre-defined regulations, which are triggered when the prescribed condition arrives. Blockchain’s dynamic usage is seen in invoice validation, payment execution, compliance verification, or any kind of dispute resolution. Real-time usage is when automated payment is activated when a shipment arrives; this eliminates delays.
• 4. Blockchain Authentication: It offers a robust and secure verification process with enhanced transparency and transaction security in the blockchain network. It is helpful in eliminating fraud and identity theft. This system for authenticating users uses digital signatures and cryptographic keys. It is useful in the banking and financial sector, as a user must pass through a set of authentication processes to access devices or systems.
• 5. Traceability Solutions: Blockchain provides a decentralized auditable trail of processes in supply chain operations. At each stage, an impenetrable block is added, and every transaction or change of partners is recorded, and all participants have access to it. The shared network makes it easy for all stakeholders to trace and track the flow of operations. In fact, consumers can track the production of an item with its date and time.
• 6. Transparency: Blockchain offers a single source of truth. With the addition of a block, there cannot be any change. It is transparent, and data can be accessed by all members, which enhances transparency.