Blockchain emerged to revolutionize the way we store and exchange information. The technology was initially created to make bitcoin transactions – the first virtual currency – more secure and transparent.
The word “blockchain” can be broken down into two parts: “block” and “chain”, referring to a “chain of blocks”. Each block contains a set of data. This information is protected by a cryptographic technique.
In the context of supply chains, blockchain allows you to track every step of the process, from the origin of raw materials to delivery to the consumer. This is because the technology is immutable, meaning the data recorded in the blockchain cannot be changed or deleted.
According to research by MarketsandMarkets, a B2B research firm, the global blockchain market is expected to reach over $94 billion by 451,2, with an annual growth rate of 2027%.
A Gartner study of technology executives from 84 countries showed that blockchain adoption is still limited. Only 9% of respondents said they already use the technology, but 45% said they have plans to implement blockchain in their companies.
Benefits of blockchain for supply chains
1. Transparency and traceability
By creating an immutable and accessible record of all transactions and product movements, blockchain technology makes supply chain processes more transparent and traceable. This allows companies to identify and resolve issues more quickly and efficiently, as well as reduce potential risks and fraud.
2. Security and immutability
All transactions and data on the blockchain are protected by advanced cryptographic algorithms. Each transaction is recorded in a block, ensuring that the data is immutable and protected from manipulation. The immutability of information makes the technology more secure and reliable for managing transactions and records.
3. Operational efficiency
By enabling real-time traceability of information, blockchain increases the efficiency of supply chain operations. By automating industry processes, it reduces errors and operational costs. In addition, collaboration between partners is strengthened, as the technology promotes safer business transactions.
4. Sustainability and compliance
Adopting blockchain in supply chains strengthens the sustainability in companies. By automating and optimizing processes, technology reduces the need for physical resources and energy, minimizing the environmental impact of logistics operations. With traceability, blockchain also facilitates efficient waste management, for example.
5. Reduction of costs
The use of blockchain speeds up transaction processing and verifications in supply chains, reducing the time and expense associated with manual processes. Access to real-time data improves supply planning and decision-making, resulting in cost savings for the industry.
How will the synergy between AI and blockchain revolutionize the supply chain?
The combination of technologies artificial intelligence and blockchain promises to transform the efficiency, security and transparency of supply chains. AI, with its ability to analyze large volumes of data, can predict demand, while blockchain ensures the integrity and authenticity of information, resulting in faster and more accurate decisions.
In the sustainable context, AI can identify more efficient and environmentally responsible practices, while blockchain has the power to record and verify these practices, ensuring compliance with regulations. This not only improves supply chains in terms of ESG aspects, but also reinforces consumer confidence.
The integration of these technologies also provides a supplier management more robust, increasing the rapid identification of problems and minimizing supply-related risks. In this way, companies can direct their efforts towards strategic decisions in the sector, optimize resources and strengthen competitiveness in the market.
Did you like this content? Also read the post “Compliance in purchasing: from an obstacle to a strategic factor for your company” and increase your knowledge on the subject!
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