The document discusses how blockchain technology can transform supply chain management by addressing issues such as high costs, lack of trust, and inefficiencies in tracking product provenance. It highlights the benefits of implementing blockchain, including enhanced transparency, real-time tracking, and the use of smart contracts to automate complex processes. Various industries are explored, showcasing how blockchain can improve food safety, pharmaceutical integrity, and automotive parts tracking.

1. ’s
2018 Inbound
SampleStrategy
planforincreasedtraffic,conversions &revenue
andthetoolstogetyouthere.
HOWBLOCKCHAINISTRANSFORMING
SUPPLYCHAIN
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2. Themanagement of the supply chain hasbecome complicated today. It takes daysand sometimes even
weeks to processthe payment between acustomer and avendor, or asupplier and amanufacturer.Also,
the contracts are managed by bankersand lawyers, which add extra costsand lead todelays.
It is quite difficult to trace backto suppliers of products which canmakeit challenging to eliminate the
defects in the system.Theneed for more transparency and traceability createsthe interest in the
application of blockchain to supplychains.
Let'sdiscuss what is broken in the supply chainindustry and how attributesof blockchain canhelp to
bringtransformation.
Introduction
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3. Table ofContents
Challengesin SupplyChain
How Blockchain can overcome the
problemsin the SupplyChainIndustry
How to apply Blockchainto some of the
challenges in Supply Chain
Management.
How BlockchainSupply Chaincan be
implementedin differentindustries.
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4. Challenges in Supply Chain
High Costs
Lackoftrust
Regulatory
Compliances
and
Documentat
ion Counterfeits
Product's traceability offers an accurate picture
of where the products are at a particular time in
the supplychain
Presently,every stakeholder within the supply
network maintains their own databasesand
systems,it becomes difficult to perform
predictive monitoring and find what wasdone
at different stagesof the production.
People always have concernif the
product they get is real or fake.The
current supply chainprocess hastrust
issuesasthere is no informationabout
the origin and partiesinvolved.
Sincesupply chain managementinvolves
various stakeholderslike regulators and
lawyers, it adds high coststo the entire
managementsystem. Also,the stakeholders
hold certain commissionfeesout of the total
amount.
TheOrganization for Economic Cooperation and
Developmenthasfound that the pirated and
counterfeit imports account forapproximately a
half trillion dollars per year in the global
economy.
Thecounterfeited products hardly meet the
industrial quality standardsand there is no
validation of the country of manufacturingor
origin.
Thecontracts in asupplychainprocess can be
complicated due to changeof ownership, bills
of lading, complicated payment terms, pro-
for-mas and letters ofcredit.
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5. How Blockchain can overcome the problems inthe
Supply Chain Industry
Sinceblockchain allows to track all types of transactions in asecureand transparent way, itoffers alot of
possibilities acrossthe entire supplychain.
Everytime aproduct changeshands in the supply chain, the transaction canbe recorded on the blockchain to
create the history of an item, from the manufacturing to sale. Implementing blockchainin the supply chain could
reduce additional costs,human errors and timedelays.
Thedistributed ledger canprovide the opportunity to changethe way the industries and companies operate the
supply chains.
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6. How to apply Blockchain to some ofthe
challenges in Supply ChainManagement.
Tracking Provenance:
Building Trust:
In ablockchain-basedsupply chain management, provenance tracking, record
keeping and data sharing becomequite easybecausethe transactions savedon
the blockchain canneither be altered or deleted. Therefore, itis possible to trace
the history of any product from its origination to where it is delivered through
blockchain supplychain.
When blockchain is implemented in the supply chains, it becomeseasier tobuild
trust. Theimmutable nature of the blockchain prevents the supply chain
ecosystem from tampering while the consensusmechanism to validate every
new transaction.
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7. How to apply Blockchain to some ofthe
challenges in Supply ChainManagement.
Cost Reduction:
Reducing the
complexities:
Sinceblockchain enablesreal-time tracking of aproduct in the supply chain, the
cost of moving items in the supply chain canbe dramatically reduced.Thesurvey
of supply chain workers carried out by the Digital SupplyChainInstitute and
APQCsaid that more than one-third of individuals quoted the cost reduction as
the most significant benefit ofblockchain in supply chain management.
Smart contracts are intended to fix issuesrelated to complicated contracts. Every
time atransaction occursin the system,smart contracts automatically execute
actions like payments, sending alerts, transfer of ownership, accessto
information or other actions that do not require an intermediary.
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8. How Blockchain Supply Chain canbe
implemented in different industries
FoodVerification:
Whether it is avegetable or any other food item, everyone wants to know if it is safeto eat or not. Currently, the food
supply chaininvolves tedious processessuchasmanual recordkeeping which is prone to humanerrors.
Data recorded at every step on the blockchain can bring transparency by makingit accessible to everyone within the
network.
Drugs andPharmaceuticals:
Pharmaceuticals are to be kept in aspecific temperature zone. Being shipped from manufacturer's factory to
warehouse, there is aneed to store the drugswithin aparticular temperature range. Using the blockchain, it canbe
possibleto trigger an alert if the temperature getshighor low.
Temperature sensorscansend the collected information about the temperature to the blockchain where it
is kept securely and permanently. Also, the blockchain-based systemcanreduce the possibilities of frauds
with its transparencyfeature.
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9. How Blockchain Supply Chain canbe
implemented in different industries
Automotive:
Ensuringprovenance acrossthe entire supply chain canreduce the appearanceof counterfeit automotive
parts. By allowing all parties to trace the whole chain, blockchain ensuresthat the part delivered is actually
the part that was shipped by the supplier. Sincethe recall processfor automotive parts is inefficient
nowadays, blockchain canhelp it makeseamlessand efficient with the help of smartcontracts..
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10. To add greater transparency and efficiency acrossthe supply chain with the Blockchain, contact usand
our blockchain experts are here to helpyou.
Need Help Building
Blockchain SupplyChain?
TALK TO US
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