Blockchain : The Next Revolution in Supply Chain Management
While cryptocurrencies, or digital currencies, have a certain following, they are only one aspect of Blockchain.. Blockchain can also be used with any industry that has a huge database such as companies with supply chains worth millions of dollars. Many experts say that Blockchain will become another game changer after the Internet.
Due to the complexity of supply chains in the logistics industry, it is difficult to track and validate information flows across different functional areas. With Blockchain however every piece of information and transaction can be recorded on a decentralized database while records are kept in each individual ledger (block) and connected in chronological order as a chain of information. This increases security and it is possible to trace back and verify any process on the production line.
Additionally, Blockchain can lower overheads in the supply chain from the distributor to vendor by using data recorded in the system to determine the most efficient routes. Several logistics leaders are taking note of this and are beginning to adopt this system. For instance, Walmart uses Blockchain to trace and authenticate the shipping process for pork from China to create an efficient recordkeeping system. BHP, a leading global resources company has adopted Blockchain as a digital tracking system to replace its database of both external and internal tracking samples stored in spreadsheets. Also, in Thailand under an “Industry 4.0” policy, International Maritime Organization (IMO) and Maersk Line, the world’s largest container shipping firm, will start utilizing Blockchain technology to improve process transparency in cross-border transactions along China-Eurasia-Europe routes.
To conclude, even though there are still limitations of Blockchain to consider, especially for Thailand where several SMEs in the supply chain still adopt paper-based documents, it is not impossible to see more transparent and traceable logistics in the near future. #BangkokBank #BangkokBankInnoHubSeason2 #InspiringChange#UnleashthePotential