Supply Chains Strengthens with Blockchain

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Blockchain has begun to affect many areas over the last two years. However, in some areas, the effect was faster. One of these areas is supply chain management. Let's first look at what supply chain management is.

What is Supply Chain Management?

In the simplest way, we can tell that all the products and services as the name given to all processes from the supplier to the customer at the last stage. In fact, the all process is interconnected and follows each other like the ring of chains. Actually, we can see that it is one of the best areas for Blockchain to work right

Problems in Traditional Management

The process consists of successive rings. However, although there are successive processes in the process, can be recorded at different points. This prevents the product from being tracked correctly. Failure to follow the product correctly can cause many problems in the process. These;

• Failure to follow customer demands effectively

• Failure to provide a healthy and quality product

• Failures in planning

• Inefficiencies in the production can not be followed effectively.

In fact, although the whole process follows each other like a chain, not everyone in the chain can see the whole process, which can cause disruptions in their own business planning. For example;

• When a manufacturer is able to follow the change in customer demands on the system, can change his production supply appropriately. Or

• The retailer, who realized that there was a failure in production, could adjust its demands again.

The Effect of Blockchain on the Supply Chain

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The biggest effect of Blockchain here is that everyone can follow the whole process transparently in the system I have described above. Thus, each part within the system can reorganize its own business management methods and continue in harmony with the whole process. In this way, possible damages are avoided. In addition, the recording of the whole process by different centers is both a complex system and may result in the loss of records and making it difficult to track. But this problem also can be easily overcome with Blockchain.

The supply chain is one of the most beautiful business processes that can be compatible with Blockchain. This is why many large companies have opted for this system in order to manage their supply chains more effectively. So we will continue to hear Blockhain's name in these business models in the coming days.