How Blockchain and Supply Chain Management Integeration Overcomes Present Challenges?

4 min read | By Postpublisher P | 08 September 2023 | Blockchain

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If there is a web that runs global commerce by connecting manufacturers to customers via suppliers, distributors, and retailers, then that web is none other than the supply chain. This article will tell you how blockchain and supply chain management is an innovation to overcome present challenges.

Every product that we use today is a result of effective supply chain management. It has the potential to determine market demand, thereby fluctuating the price of a product. But supply chain management is far from perfect. Here are a few main reasons.

Major Challenges of Present Supply Chain Management

•𝐋𝐚𝐜𝐤 𝐨𝐟 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲: It’s difficult to track the movement of goods and verify the authenticity of products as there is a lack of standard data format between different suppliers and stakeholders.

•𝐈𝐧𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐞𝐬:The manual and paper-based processes are slow and prone to errors, which result in delays & customer dissatisfaction.

•𝐋𝐢𝐦𝐢𝐭𝐞𝐝 𝐓𝐫𝐚𝐜𝐞𝐚𝐛𝐢𝐥𝐢𝐭𝐲: It’s a struggle to trace products back to their origins. Sometimes you can’t. Identification of the source of a problem is a struggle.

•𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Finding the balance of maintaining optimal inventory is the biggest headache. You can’t overstock and tie up storage space or understock and lead to stockouts.

•𝐅𝐫𝐚𝐮𝐝: It’s easy to imagine someone introducing counterfeit goods into the supply chain. This will result in major revenue loss and reputational damage for businesses.

Many more reasons like interpersonal relationships with the suppliers and partners, regulatory laws, forecasting the demands, and globalization are a few other challenges faced by traditional supply chain management.

So, how come we overcome these challenges? Answer: Blockchain for supply chain (it rhymes). Let’s have a detailed look about blockchain and why it is a revolution.

Integrating Blockchain and Supply Chain Management

Recently, there have been different businesses seeking blockchain development services from us. Supply chain management is no exception. So, what is this Blockchain?

Similar to a general ledger used by businesses to record all its transactions, Blockchain is a digital ledger technology that is decentralized.

Decentralized means the control of data is distributed across multiple individuals, making everything transparent. This distributed ledger architecture is also resistant to hacking and tampering and provides a brand new way to store and share data that’s secure.

Though it was originally designed to power cryptocurrencies like Bitcoin, its applications have expanded far beyond the initial expectations. Let’s see how blockchain technology in supply chains is a revolution that businesses need today.

Why Blockchain and Supply Chain Management is a Revolution?

Blockchain technology overcomes the supply chain limitations that we have discussed above. Let’s have a look one by one.

Enhanced Transparency:

Blockchain is a transparent ledger that contains all transactions of products within the supply chain. From manufacturers to consumers and everyone in between can access real-time information. Is there anything more transparent than this? It is unparalleled transparency. The result? Reduced disputes, errors, and fraudulent activities.

Immutable Records:

Once a data is recorded on the blockchain, it cannot be altered or deleted. This feature is great because it ensures data integrity and trust among supply chain stakeholders. They can rely on the accuracy of the information stored on the blockchain. Yes, integrating blockchain and supply chain management brings a lot of trust between people who can go to sleep without worry.

End-to-End Traceability:

Being able to trace the product’s journey throughout the supply chain is as important as the product itself. With Blockchain, each product will receive a unique ID that allows not only the business owners but also the end users to track the product back to its origins. Isn’t it crucial for industries like food and pharmaceuticals to ensure quality and compliance?

Smart Contracts:

Smart contracts is a programmable code that is executed automatically when predefined conditions are met. This is used to streamline various supply chain processes. These contracts can facilitate payments, automate order confirmations, and trigger quality checks, reducing the need for intermediaries and manual intervention. Just imagine how much time and energy can be saved with decentralized supply chain management.

Real-Time Updates:

Inventory management is no longer a hassle. Blockchain enabled supply chain management can provide real-time updates on the products, like the current status and location of goods. This will be very handy to predict delivery times and quickly respond to users if there are any issues or delays in the process.

Counterfeit Prevention:

Now, you would have a good idea about the Blockchain’s transparency in logistics as it’s immutable and has zero ambiguity. With this tamper-resistant nature of Blockchain, there is no chance for counterfeit goods to enter the supply chain because product authenticity is verified at each stage. Everything that customers receive will be genuine.

Cost Savings:

Integrating Blockchain and Supply chain management can save you a lot of money. How? Blockchain solutions eliminate intermediaries by automating the process. Huge manual work is eliminated, which also eliminates errors during the process. In the longer run, businesses will have an efficient supply chain at much lower costs.


Another interesting benefit of supply chain optimization with Blockchain is that organizations and consumers can make more sustainable choices. While allowing everyone to track the product’s journey from its origins, they can also track the environmental impact of these products and supply chain operations.

To Wrap Up:

From toilet paper to medicines, people need to know (and have a right to know) the quality of the product and when they can expect those products to reach their doorstep. While every business is in the constant pursuit of improving the effectiveness of an organization, Blockchain and supply chain management integration opens new doors and overcomes many present challenges.

If you are interested in knowing more about Blockchain or wondering where to find the right blockchain development services that can make things work for your business, you are at the right place. Get a free consultation with us, and our industry experts will clear all your doubts. If you like our solutions, you can hire us. A win-win. So, let’s talk?

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