Supply chain logistics is paramount to the success of any business, without implementing the proper strategy for supply chain management, no business can run efficiently or survive. That’s why many enterprises and manufacturing firms invest a hefty amount in effectively maintaining their supply chain network.
Supply chain management comprises product sourcing, product development, procurement, and logistics. Besides, the information system that aids in the coordination of these activities is also included. companies and retailers solely rely on the obsolete model. Leveraging the power of blockchain technology, inefficiencies and the issues faced by manufacturers and retailers can be resolved.
According to the recent report published by PwC, in 2018, the adoption rate of blockchain for inventory management is 5%. This adoption is most likely to skyrocket in a couple of years.
What makes blockchain best suits for inventory management is it paves the way for companies to connect every part of their supply chain with a secure, transparent, and permanent block of transaction. In this way, it solves the biggest caveat of the inventory management teams. Want To Know More
Inefficiencies in the Inventory Management
Simply speaking, inventory management sheer relies on the supply and demand methodology. Companies are facing serious troubles in managing their supply chain with this traditional technique. Apart from that, assessment of the customer needs is hamstrung by inadequate visibility down the supply chain.
Supply chain management companies comprise multiple participants such as suppliers, distribution centers, and retail stores. Each of these participants unleashes their methods for the management of transactions and goods transportation.
This paradigm is prone to failures because it doesn’t allow companies to effectively address market needs. Eventually, companies lead to havoc. If a company fails in speculating the customer needs, it ends up facing understock or overstock goods.
Additionally, a company cannot ensure the optimal utilization of human resources without the proper functioning of the supply chain management system.
Blockchain aids in connecting all the stack holders involved in the supply chain management system in a more transparent, unified, and decentralized manner. As a result of that, Blockchain plays a significant role in eliminating the inadequacies in the prevailing inventory management system
The Supply chain industry plays a decisive role in the transportation of goods across the globe and this industry is desperately looking for technology to resolve its inadequacies. Specifically, the inventory management system is looking for a perfect solution to streamline its operation and for maintaining a precise record-keeping system.
This is where the power of Blockchain technology comes into the picture for resolving the flaws in the inventory management system.
By harnessing the true potential of Blockchain, the efficiency and transparency of an inventory management system can be enhanced.
Here is how Blockchain works for an inventory management system
Security of Data
As the data is stored in an encrypted form in the Blockchain network. Therefore, the data of an inventory management record is not prone to tampering.
Decentralization of Server
The major problem with the prevailing inventory record management is the centrality of data which makes it less transparent. On the flip side, Blockchain operates on a decentralized network therefore, it is widely accessible by all the stack holders of supply chain management.
Issues regarding data accuracy and integrity can be completely resolved to leverage the power of Blockchain as it stores data in a public ledger.
Data stored in the Blockchain network is accessible by all the parties involved in the inventory management system. Even though data is widely accessible, but no one can tamper with it.
Undeniably, Blockchain technology can help companies to revolutionize their existing inventory management. That being said, we strongly recommend you to stay ahead of your competitors and start implementing Blockchain from today for optimal utilization of your resources.
Implementing a Blockchain-based solution for inventory management allows companies to transform their approach from proactive to reactive to proactive.