Blockchain can be applied to supply chain management to increase transparency and efficiency. It allows all participants in the supply chain to access a shared ledger with real-time information. This reduces errors, delays, and fraud while improving management and trust between consumers and suppliers. Companies should start by implementing blockchain on weak points in the supply chain and collaborating with other members before expanding the solution. The full benefits are realized when the entire supply chain is integrated on the blockchain platform.

1. HOW TO
APPLY BLOCKCHAIN
TO
SUPPLY-CHAIN
MANAGEMENT
fluence.sh

2. What is the supply chain?

3. Supply-chain management, also referred to as supply
network or logistics network, is a data system of things, goods,
and people involved in the process of trading. It is the record of
the process involved when the product travels from the place it
was made to the person who actually receives it.

4. origin
compounds
information about suppliers and producers
facts about consumption and/or product storage
Nowadays, consumers are highly interested in full information
about the products they are purchasing:

5. All of the factors mentioned
above can be securely recorded,
stored, and processed within the
blockchain transaction system
in any given supply chain.

6. Today, supply chains are inherently complex, as they involve
numerous participants from all over the world. The ability to
manage supply-chain systems transparently and openly is
vital. In order to streamline processes for better efficiency,
blockchain offers great benefits.

7. The Benefits of
Blockchain Implementation
Within a Supply Chain

8. With blockchain’s help, it is possible to:
reduce errors
avoid product delays
eliminate fraudulent activities
improve management
increase consumer/supplier trust
Blockchain itself is an optimized system of a shared database that includes digital
information on the products, people, or events that can be accessed or inspected by many
users.
Blockchain technology is a great way to improve supply-chain management, as it uses the
distributed public general ledger.

9. When facing a lack of transparency, blockchain reveals a variety of
transactions in goods and/or services, which are all recorded and
tracked in real time.
What’s more, the information can be changed, edited, or added, but
not deleted, thereby displaying the real facts and clarifying the retail
process.
Let’s consider the dry aged beef supply chain as an example.

10. Dry aged beef supply chain

11. One can track how the product gets from the supplier to the producer,
and how it is distributed. It is possible to get information about the
origin and destination of the product. Furthermore, it can be seen
how a retailer adds potential information about its usage, and
provides an additional application for customers. Lastly, the buyer
gets full knowledge about the origin of the product, its delivery time,
and additional facts about its consumption.
Monitoring such transactions makes it easier for consumers to remain
informed. The public distributed ledger allows them to get the latest
updates, and, therefore, see the whole picture of the supply chain.
Supplier Buyer

12. As the backbone of supply-chain digitization, blockchain technology enables bilateral
settlement by eliminating midpoint failures, delays, and collateral costs while minimizing
credit risks during exchange spreads. It has the following advantages:
No central authority
Elimination of Intermediaries
Real-time settlement
Drastic reduction in operational costs
High level of Transparency

13. All of the features improve the efficiency of the decentralized system, are extremely innovative, and open new
opportunities for forward-looking businesses.
BLOCKCHAIN
Scalability
Independence of
legacy systems
Security
Transparency Because the data is shared, edited, and unchangeable, it requires
less administrative work and lowers charges for transactions.
This makes implementation quick and hack-resistant.
Blockchain is scalable due to the fact that many participants are integrated
into the system and receive up-to-date information.
The indelible ledger of shared data with codified rules eliminates the
audits used by internal systems, providing better security.

14. How to apply
Blockchain
to
Supply-Chain
Management?

15. In the beginning, it is wise to start small: the company should try
implementing blockchain solutions just to several weak points at first.
When progress is seen and everything is working well, it is time to move
forward until all the issues are resolved and solutions are found.
Collaboration and scalability progress are essential in applying
blockchain to supply-chain management.

16. How to Apply Blockchain to
Supply Chain?
1. Understand and
evaluate possible
risks.
2. Work out a map
of weak points.
3. Apply the
blockchain solutions.
4. Start small.
Run the tryouts.
5. Collaborate. 6. Scale
progressively.

17. Three steps
should be followed
to achieve
the final goal

18. First, the business sets up an internal company
blockchain. In the beginning, it may take some
time to get accustomed to the new technology,
but it certainly pays back in the end.
1.

19. Next, it is necessary to extend blockchain to
adjoining members, such as direct suppliers and
third-party logistics. It is important to
collaborate with customers, suppliers, and
technologists. It takes a certain effort to set
everything up. That is why companies often
partner with forward-thinking service providers
who value innovation and transparency for their
customers.
2.

20. Finally, as data availability is insured and its
exchange is fostered, all the players of the
supply chain can be integrated, including end
customers.
3.

21. As supply chains are complex nowadays, they involve numerous participants
in relationships. The most common issues have to do with a lack of
transparency and traceability, and blockchain technology provides the
best solutions. Its implementation in supply chains gives companies
numerous advantages. It reduces the time delays, additional costs, and
human error factors that are so common today. In order to increase profits
and strengthen your position in the global market, it is crucial to be
innovative and use blockchain’s potential.

22. If you are still wondering how to deploy, integrate and manage the
distributed / decentralized technologies in your businesses then
Fluence.sh or, in two words - Blockchain as a Service product - can
help you to save not only days and weeks, but even additional costs
on adoption and running the blockchains.
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24. You can read the whole article here
https://medium.com/applicature/how-to-apply-blockchain-to-supply-
chain-management-8cc673c66c4c