Blockchain and IoT - Adding Value to Your Supply Chain with Technology
According to Forbes, 65% of more than 400 senior transportation-focused executives believe the logistics, supply chain and transportation sector is experiencing nothing short of a tectonic shift.
That’s because new technology is disrupting the status quo. Both the blockchain and the Internet of Things (IoT) are changing the way the world moves money and goods from one party to the next.
The blockchain records each transaction on a series of blocks or ledgers, including every detail of the transaction, all of which is then made available to business leaders, shareholders, and even consumers.
The IoT is also pushing the supply chain in new directions. Business can now track shipping containers in real time using wireless sensors and automate their warehouses, sharing valuable information with their consumers and trading partners. Learn how both new technologies can add value to your company’s supply chain.
The IoT and the blockchain make it easy to track shipping containers as they move around the globe. With the IoT, you can attach wireless GPS devices to your packages, so you can monitor their locations as they move all over the world.
If you use industrial storage bins to ship your products, you can add smart scanners to the label. Carriers will then scan this tag every time the bin passes another checkpoint in the supply chain, so you, your partners, and your consumers will know where everything is in real time.
The blockchain does the same thing for your packages, except it uses an unchanging chain of information to record these transactions, including the details of the shipment. Everyone will have access to this information, creating a more transparent supply chain. You won’t be solely responsible for generating and sharing this information. The blockchain will record it automatically, giving you and your shareholders more peace of mind.
End-to-End Visibility for More Quality Control
When you can view and verify every step of the supply chain, you have more control over the quality of your products. If your suppliers use the blockchain or the IoT to move their products through the supply chain, you can start asking more of your suppliers if they fail to hold up their end of the bargain.
You’ll be able to review every aspect of these shipments as they make their way from one vendor or manufacturer to the next, including the contents, price, date, location, and certification. This helps you keep your suppliers honest. If they use poor-quality ingredients, offer lower prices to your competitors, or deal with fraudulent parties, you can review this information on the blockchain.
You can also use this information to compare prices with other suppliers, ensuring you always get the best deal. At the end of the day, you’ll have more peace of mind knowing you can see every step of the supply chain.
Sharing Information with Consumers
It’s not just business leaders that can hold suppliers accountable for their actions. Consumers can use this technology to ask more from the brands they use every day. From real-time tracking to understanding ingredients behind some of these products, consumers can take a more vested interest in the supply chain, so they can make more informed buying decisions.
They’ll be able to review transaction information for themselves, sharing it with loved ones or on social media. If a company or supplier engages in inappropriate behavior like polluting the local environment, the backlash will be swift and fierce.
Using the IoT and the blockchain to make your supply chain more transparent can help you woo over consumers who want access to this kind of information. Consumers desire and respect transparency and authenticity. Give your customers more of what they want and record everything on the blockchain.
With more access to information, you can use the blockchain and the IoT to reduce the risk of fraud in your supply chain. On the blockchain, two parties must present the correct credentials before the shipment can change hands. Once the ledger has been created, the information detailing this transaction can’t be erased or altered in any way. This ensures you’re always dealing with the right carrier or customer.
You can also use these additional security measures to make sure you get the right order when dealing with suppliers. You can trace the origins of the product and make sure your suppliers hold up their end of the bargain. This helps you improve the quality of your products and avoid product recalls that can damage your company’s reputation.
In turn, your customers will reward you for maintaining consistent quality standards. You can take your brands to new heights and partner with suppliers that share your vision. You also won’t have to worry about your goods getting lost or stolen on the road, which is key if you trade or sell rare or precious goods.
Access to More Information
At the end of the day, the blockchain and the IoT give you access to more information. You can use this information in dozens of ways that will benefit your business in the long term. You’ll have more control over the supply chain as you vet your suppliers and ensure timely delivery to your customers. You can also better forecast future demand for your products by analyzing all this information.
If you want to make the right impression on your consumers, you can use the blockchain and make this information available to the public. Your customers will be proud to support a business that values honesty and integrity in everything they do. This information will change the way people think about your business, helping you make a name for yourself in an increasingly competitive market.
With so many benefits, it’s no surprise that many startup companies are spending money researching blockchain technology. Companies all over the world can leverage this technology to make their supply chains more flexible and secure. Consider investing in this new technology and take control of your supply chain.
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