A new way of thinking about the role of technology in a logistics organization will be necessary as blockchain gains traction in the coming years. We explore why this is the case and what it means for organizations today and in the future.
Blockchain has numerous applications in industries such as finance, healthcare, and agriculture. It has been widely heralded as the solution to problems plaguing the global financial system due to its decentralized, transparent, and secure nature. Despite causing a lot of buzz in the media, its true disruptive potential is still being explored and understood.
Suppose you are looking for a replacement for your current procurement system or want to reduce your overhead. In that case, you should go for the blockchain solution because it will help you by giving you the flexibility you need to automate your finances in various ways. The disruptive potential of blockchain technology will allow you to automate your finances in various ways by eliminating intermediaries, reducing administrative costs and increasing transparency. Thus, each network participant can independently verify the accuracy and authenticity of all subsequent blocks. No wonder this technology is gaining so much attention in just one year. Let’s explore why blockchain is known as the most disruptive technology.
1. Blockchain can revolutionize any industry:
Blockchain technology is the next disruptive technology of all time. Businesses in any industry can use blockchain, but logistics and supply chain management companies will have a better time using it. Blockchain is the only technology that can bring transparency, trust, efficiency, and transaction speed to supply chain interactions with minimal human involvement.
It means that you will eliminate waste and inefficiencies when you adopt blockchain as your new supply chain management system. Blockchain is already revolutionizing multiple industries like finance, healthcare, and agriculture; it will also disrupt the supply chain industry very soon. So, let’s look at the use of blockchain in different industries.
Healthcare is one of the most crucial industries, and blockchain technology can help create data security, advanced analytics, and better identity management systems for patient data.
Businesses can use it to manage the production, distribution, and tracking of food products, along with farm-to-fork data management. In addition, it will allow transparency in the system, which will minimize fraud and price manipulation.
Blockchain is being used by multiple banks around the world to create faster payment systems, lowering transaction fees and maintaining security standards.
People can use it to provide instant transactions, record keeping, and transparency. It will help provide confidence and security to financial institutions. The blockchain solution will reduce fraud and improve efficiency in financial transactions.
It is a crucial component of supply chain management, helping to simplify data management and bring transparency to the overall process. People can use their technology to improve data protection, integrity, security, and quality control in supply chains.
Reasons behind the disruptive potential of blockchain:
Blockchain is autonomous, which means that it will take care of the entire supply chain and can automate your finances to a great extent. In addition, the decentralized and real-time tracking of goods and money allows you to have total transparency within your supply chain process.
Blockchain technology helps to make transactions faster as all transactions are recorded in an immutable ledger.
Blockchain-powered value chain management system can reduce transaction cost and improve efficiency to a great extent. You will also eliminate unnecessary expenses and intermediaries, saving up to 40% of production costs and reducing transaction costs by up to 80%.
Blockchain adds interoperability with existing technology, resulting in data connectivity, one-way data flow, and massive collaboration between customers, vendors, and partners. Decentralization is the key to supply chain management interoperability, making the system more reliable.
Disintermediation of the supply chain means there will be no intermediaries or third parties involved in the process, leading to less corruption and transaction delays. IBM is one of the leading companies that have recently used blockchain technology. For example, it partnered with a shipping company that allows them to track their products through a blockchain-enabled system that is completely decentralized.
5. Blockchain is easy to operate and reduces corruption:
It has reduced corruption in the system because it is transparent and has eliminated any possibility of fraud. Helps reduce costs by eliminating unnecessary expenses such as late payments, intermediaries, transfer fees, etc. Blockchain implementation seems simpler than it is.