Blockchain is one of the technologies that has brought the world to a halt. In the future, it will be impossible to live without blockchain.
One of the key things that give blockchain a strong edge is using DLT (Decentralized Ledger Technology). It is a decentralized open ledger that promotes transparency.
Many industries have benefited from blockchain, and the Supply chain industry is one of the main ones that have bagged the innovation. Blockchain has mainly been used for multiple integrated applications in the industry.
Singapore Supply Chain
Singapore has one of the most advanced supply chain systems in the world. It is taking advantage of pf Blockchain to ensure there are efficient asset tracking and traceability. This is very applicable in the current world, especially post-pandemic.
According to a survey done by PWC in July on the Singapore Blockchain System, it was clear that 52% use blockchain for asset tracking and traceability, and 52% trade finance. Most blockchain applications are interrelated, and hence all blockchain users are covered in that.
From the survey, blockchain has a massive potential to revolutionize the traditional workflow across different industries. In the supply chain, it may reduce the number of human capital needed in the process, but will help in cutting down costs and increasing efficiency.
Blockchain supply chain
In the supply chain, tracking is very crucial, and traditionally it takes a long time as there are many parameters involved due to fragmented logistic networks. The supply chain network is not linear, as it involves a big range of networks with a complex ecosystem of suppliers, partners, and customers.
Since DLT enables an open ledger, it cuts down on time taken to do tracking and movement of goods in the chain. That enables a fast and smooth flow of goods in the chain, which makes everything easier.
The open ledger makes sure that there is more visibility in the movement of goods across the chain. Since it is immutable, there is accurate and timely supply chain data. This helps to cut down on the inefficiencies and risks, especially when it comes to global value chains.
DLT brings together the different players of the supply chain so that everyone is in sync. As a result, they have real-time information and update, and privacy as well.
DLT has made the global supply chain to be less complex as there is easy trust, more efficiency, transparency, and visibility. It has cut down on the risks in the chain, thus promoting trade in general. Parties in the trade can confidently verify the origin of the goods. Also, their quantity, movement and location, and any other details they will need.
With smart contracts, which is one of the applications of blockchain, both parties must meet the terms before a trade is executed. This will help stakeholders to be confident in trading as one has to meet the set conditions before they can trade. It helps to filter away non-compliance cases and being conned.
With blockchain, record keeping is a breeze as it is an immutable ledger that can be accessed by anyone in the network. You can be confident the information is accurate and cannot be manipulated. With that, it is easier to do analysis and report systems that can help in future decision making. It also helps when you want to do certifications, bills of lading, etc.
What does the future hold?
As mentioned earlier, blockchain adoption is on the rise, and Singapore is a good example. As the world understands the technology more, they will be open to embracing it. We are always in the plight of innovation to solve our everyday problems. Singapore has been a pacesetter for other countries; companies and industries will jump on the board.
There are hopes that the global supply chain will take a total shift with more innovation in it.