Supply chain use cases refer to a wide variety of applications and concrete implementations of the supply chain concept. This time, let's review the supply chain use case already utilizing blockchains.
Getting to Know the Supply Chain
Supply chain, or supply chain, is a series of activities and processes involving the production, distribution, storage and transportation of goods or services from suppliers to final consumers.
An efficient supply chain is the key to success for companies, considering its impact on cost management, product availability and customer satisfaction.
A Brief History of UseBlockchain pada Supply Chain
The history of blockchain use in supply chains began as a response to the challenges and shortcomings faced by the traditional supply chain industry.
The following is a series of key events that reflect the historical development of the use of blockchain in the supply chain:
1. The Beginning of the Blockchain Concept (2008-2009)
The blockchain concept was first introduced through a whitepaper entitled "Bitcoin: A Peer-to-Peer Electronic Cash System".
Written by a person or group under the pseudonym Satoshi Nakamoto.
White paper it discusses the basic concepts of blockchain, which are then used to support crypto transactions, such as Bitcoin.
2. Expansion of Blockchain Functions and Applications (2014 - 2016)
Although blockchain was initially associated with cryptocurrencies, stakeholders are starting to identify the potential of this technology to address challenges outside the financial world.
The emergence of the Ethereum platform opened the door to the development of smart contracts, which can program automatic agreements based on certain conditions.
In 2016, several companies began to entertain the idea of using blockchain in supply chains.
The event created awareness of the potential of this technology to increase transparency, security and efficiency in supply chain management.
3. Pilot Projects and Consortiums (2017)
The emergence of pilot projects and the formation of industrial consortia has become a trend this year.
Large companies, especially in the logistics sector, are starting to trial the use of blockchain in some parts of their supply chains.
The formation of the consortium is an important step to combine industry efforts and create mutually acceptable standards.
4. Development of a Blockchain Platform Specifically for Supply Chain (2018 - 2020)
Several blockchain platforms, specifically for supply chains, are starting to emerge.
This phenomenon is a more focused solution that can be adopted by industries with special needs in managing their supply chains.
These platforms usually offer features such as real-time tracking, automatic validation, and transparency.
The application of blockchain to supply chains is undergoing larger-scale testing, with several large companies expanding its use or joining joint initiatives.
Adoption is increasingly widespread and covers a wide range of sectors, from manufacturing to food and pharmaceuticals.
5. Influence of the COVID-19 Pandemic (2020-2021)
The COVID-19 pandemic exposed vulnerabilities in global supply chains and raised awareness of the need for more efficient and resilient solutions.
The use of blockchain in supply chains is increasingly recognized as a tool that can help overcome challenges such as shipping delays, increased demand, and difficulties in product tracking.
6. Advanced Innovation and Industry Collaboration (2022 onwards)
It is hoped that blockchain technology continues to develop and will give rise to further innovation in the application of blockchain to the supply chain.
Collaboration between companies and industry consortia will continue to play an important role in creating standardized and widely accepted solutions.
Impact of Implementing Blockchain Technology on Supply Chain
1. Transparency and Real-Time Tracking
Blockchain provides a distributed ledger that can be accessed by all parties in the supply chain.
The implementation of this technology increases transparency, allowing every stakeholder to track the movement of goods in real-time, from production to delivery.
2. Security and Resistance to Manipulation
Information entered into a blockchain is encrypted and cryptographically linked, making it difficult to manipulate.
This increases data security and reduces the risk of information being changed by unauthorized parties.
3. Operational Efficiency
Automating processes using smart contracts, which can be executed automatically when certain conditions are met, helps increase operational efficiency.
This kind of process can actually reduce administration costs and the time needed to complete transactions and deliveries.
4. Tracking the Origin and Quality of Products
By keeping records of each stage in blockchain, producers and consumers can trace the origin of products easily.
This kind of thing helps ensure product authenticity and quality, which can be especially important in the food and pharmaceutical industries.
5. Saves costs and time
Cutting out middlemen, automating payment processes and more efficient tracking can reduce costs and time required in the supply chain, thereby providing added value for all stakeholders.
Example of a Supply Chain Using Blockchain
1. Walmart and IBM
Walmart has adopted blockchain technology to manage the supply chain of fresh products, such as vegetables and meat.
By using blockchain, Walmart can more quickly trace the source of food contamination and evaluate the origin of products to ensure safety and quality.
2. Maersk
Maersk, one of the world's largest shipping companies, partnered with IBM to develop the blockchain-based TradeLens platform.
The platform aims to simplify and improve the efficiency of global supply chains, including shipping processes and document processing.
3. Everledger
Everledger uses blockchain to track and verify the origin of diamonds and other luxury items.
This practice helps address the issue of counterfeiting and provides consumers with confidence regarding the authenticity of the product.
Use Case Supply Chain with Blockchain
As a more specific use case example, consider a clothing company implementing blockchain in its supply chain:
1. Production Recording
Information about each stage of production, including material sources, factories involved, and production dates, is recorded in the blockchain.
2. Shipping Tracking
Every step in distribution and delivery is recorded in real-time.This provides clear visibility of product movement.
3. Quality Check
The results of quality checks at each stage can be entered into the blockchain. If there are defects or problems, they can be immediately identified and resolved.
4. Deduction of Intermediaries in Payments
By using smart contracts, payments between the parties involved can be made automatically when certain conditions are met, reducing dependence on financial intermediaries.
5. Transparency for Consumers
Information on the origin and sustainability records of products can be accessed by consumers through a safe and reliable system.
Conclusion
The application of blockchain technology in supply chains opens up huge opportunities to increase efficiency, security, and transparency.
Several leading companies have already adopted this technology, proving its potential to overcome challenges in the supply chain industry.
While there are still several obstacles and challenges that need to be overcome, the continued development of blockchain technology promises significant positive changes in the way we view and manage supply chains in the future.
Baca Juga:
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time, and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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