Blockchain Technology: How it can revolutionize procurement and supply chain Management
In the past few years, technological advancement has given birth to several emerging technologies that have brought radical changes to the business processes. One of the fastest emerging and revolutionary technology that is disrupting the entire industry is Blockchain Technology. It is mainly used in the financial industry and commonly known for cryptocurrencies or bitcoins. Blockchain technology has the potential to influence the core process in a wide array of industries primarily in finance, procurement and supply chainmanagement.
How Blockchain Technology works
Blockchain is a ledger system that aims to deliversecurity and transparency during transaction happening between multiple parties. It’s made up of a distributed database that can hold the record of the digital transaction between two parties in a permanent way. Blockchain technology allows transparent traceability of a product from its origin or source, with new ledger entries build every time the product is transacted. Hence, it eliminates the risk of data alteration.
This revolutionary feature of Blockchain technology is highly significant for procurement and supply chain. Because the digital transaction involved here can be considered much safer, transparent and efficient compared to the normal transaction.
From the payments and audits to tracking inventory, the procurement industry can reap all the benefits of blockchain to its fullest potential. Here are a few key benefits blockchain offers to procurement and supply chain management.
Blockchain Technology is safe and invincible
It’s safe for the procurement industry to run any transaction smoothly on blockchain because, it is done through cryptography. This ensures that the digital identities of the parties involved are recorded correctly and securely. They own a private key for the transaction that can’t be manipulated by hackers.
It offers seamless supply chain management
Blockchain technology uses ledger entries to digitally record multiple transactions happening between the parties. Since paper-based invoicing are redundant here, it makes the process faster and establishes seamless supply-chain points. The transactions in Blockchaincan also be performed across countries by integrating the local taxes and regulatory laws that enhance the scope of business.
Transparent and exploitation proof
Blockchain offers transparency of transactions and the records are indestructible that keeps it free from the vulnerability of manipulation and exploitation. So, using the blockchain technology procurement industry can safeguard against the nuisances and can harness efficiency in the business.