Supply chain management plays a crucial role in carving out the best means by which suppliers can ship wide-ranging raw materials from the source to the customers.
The role played by supply chain management is inextricably linked to operations management. The distribution and shipment of products from the source to their destination increasingly entails strategic planning, controlling, and supervision of product delivery to a vast clientele.
The fast-paced technological revolution has continually revolutionized the operational schematics of several organizations over time. Different firms operating in their distinct industries have and still feel the effects of the ubiquitous proliferation of modernized technology.
The fast-paced progression of new technology has increasingly affected the supply chain and management sector. Supply chain management similarly entails the transactional media suppliers and customers use to send and receive payment.
Suppliers have always relied on electronic data interchange as the primary mode of business transactions. However, the advent and proliferation of modernized technologies such as blockchain have increasingly offered seamless ways through which varied businesses can communicate and transact securely throughout their operations.
Part I: Enhancing Enterprise Value with Blockchain and Tracking Systems
Blockchain Technology for Secure Business Transactions
Blockchain technologies in supply chain management denotes the new emergent technology comprising a digital database designed to provide a secure means by which businesses can transact safely. It protects against unexpected tampers such as hacking and identity theft.
The adoption of blockchain technology by suppliers and businesses stems from its capacity to provide a safe and secure platform for transactions and communication without interference from third parties like hackers and cybercriminals.
Previously, traditional communication channels such as electronic data interchange were used to relay information between supply chain partners (Bowersox et al., 2020). While convenient, this method proved somewhat vulnerable, especially in facilitating secure and accurate exchange of data.
Blockchain technology presents promising outcomes in providing security, data accuracy, and secure means for suppliers to transact with customers (Bowersox et al., 2020). It enables suppliers to trace the destination of their products and source of payment more efficiently.
Building Enterprise Trust Through Cryptocurrency Use
The use of blockchain technologies such as cryptocurrencies allows businesses to build lasting bonds with customers. Cryptocurrencies like Ethereum and Bitcoin enable secure and accurate transactions.
Improved accuracy and security have encouraged more businesses to embrace blockchain technology. Additionally, blockchain offers a decentralized structure for transactions, unlike traditional centralized mechanisms. This decentralization enhances communication and trust across the supply chain (Bowersox et al., 2020).
Part II: Delivering Customer Value through Blockchain and Supply Chain Tracking
Transparency and Traceability for the End Customer
Blockchain technology also benefits customers significantly. It creates a secure platform for customers to track the source of their raw materials (Bowersox et al., 2020).
This transparency helps customers who might have previously received delayed or defective materials. Blockchain provides a way for customers to identify their suppliers, shipment sources, and transactional ledgers.
Strengthening Customer-Supplier Trust via Blockchain
Blockchain technologies like Bitcoin have promoted trust between customers and suppliers. This trust has led to the formation of longer-lasting trade relationships and an improved supply chain (Bowersox et al., 2020).
As mentioned earlier, blockchain offers secure transaction tracking. Relying on traditional methods like electronic data interchange continues to risk transaction safety.
Conclusion: The Role of Blockchain in Elevating Supply Chain Efficiency and Trust
In summary, blockchain technologies in supply chain management offer benefits for both enterprise and customer value.
For businesses, blockchain enhances trust and operational success. For customers, it ensures access to crucial information such as product source and transactional details. Businesses like FedEx and UPS exemplify how strategic planning aligns with technological innovations like blockchain to improve operational efficiency. Explore how strategic planning drives operational success at FedEx and UPS.
The adoption of blockchain technologies like Bitcoin has greatly revolutionized the global supply chain. It has positioned businesses and customers to operate with greater trust, transparency, and security. Curious about how to foster strong, lasting relationships with your key stakeholders? Unlock powerful strategies for success in building trust and cooperation by checking out this guide.”
Reference
Bowersox, D., Closs, D., Cooper, M., & Bowersox, J. (2020). Supply chain logistics management (5th ed.). McGraw-Hill Education.
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