Blockchain Supply Chain: Tracking and Transparency
Supply chain management is the process of managing the flow of goods and services from the raw material stage to the final distribution of the product. It involves the coordination of various activities such as procurement, production, transportation, warehousing, and distribution. A typical supply chain involves suppliers, manufacturers, distributors, retailers, and customers. The goal of supply chain management is to reduce costs, improve efficiency, and enhance customer satisfaction.
The supply chain can be divided into two main components: the upstream and downstream components. The upstream component involves the flow of goods from suppliers to manufacturers, whereas the downstream component involves the flow of goods from manufacturers to customers. The upstream component is concerned with procurement, production planning, and material handling, while the downstream component deals with distribution, warehousing, and transportation.
Effective supply chain management requires the coordination and integration of all the activities involved. This is achieved through the use of various tools such as information technology, communication systems, and collaboration platforms. The use of these tools helps to improve the visibility and transparency of the supply chain, enabling better decision-making and problem-solving. One such tool that is gaining increasing popularity is Blockchain technology.
Blockchain technology provides a secure and transparent way to record and track the movement of goods and services throughout the supply chain. It enables all the parties involved in the supply chain to access a common ledger, which contains a record of all the transactions that have taken place. This helps to reduce the risk of fraud and error and improves the efficiency of the supply chain.
In the next lesson, we will explore the challenges in the current supply chain system.
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