The supply chain is a critical component of any business that involves the transportation of goods and services from one location to another. In today's world, the management of data flow is essential for effective supply chain management, but current practices are often based on outdated principles. As a result, inaccuracies, incomplete data, and wasted resources frequently occur. However, there exist potential solutions to address these issues.
Research has indicated that 75% of firms engage in data exchange with external organizations as part of two to five business processes. Unfortunately, 60% of these companies still rely on custom systems or manual forms to manage information between organizations. Consequently, data may be lost or become obsolete upon arrival, leading to an estimated loss of $3.1 trillion for firms.
Moreover, the data of 25% of large enterprises is often inaccurate or incomplete, and poor data quality can cause companies to lose up to 30% of their revenue. In addition, 75% of operational time is wasted addressing data-related issues. These statistics underscore the critical importance of efficient data management in the supply chain.
One potential solution is to utilize Internet of Things (IoT) devices to gather information. Blockchain technology enables verifiable and unfalsifiable digital transactions between multiple parties.
Blockchain enables transaction data to be shared with multiple parties on an enterprise network in a decentralized manner, without a central point of failure. Transaction data can only be added, and overwriting is not possible. This secure and confidential system utilizes proven and tested technology for managing consent and data/transaction access. It guarantees instant data synchronization and automatic recovery in case of problems, with real-time data sharing.
Traditional supply chains often encounter numerous difficulties, such as a lack of traceability, slow responsiveness, and manual processes. The implementation of blockchain technology can help resolve these issues by providing verifiable, tamper-proof data that can be shared in a decentralized manner, without a central point of failure.