Competition in today's marketplace has become increasingly dynamic and demanding, resulting in a challenging competitive environment. To adapt to this dynamic environment, supply chains increasingly rely on collaboration, integration, flexibility and trust among receivers. Therefore, the importance of new technology applications in the supply chain is increasing day by day.

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Blockchain technology can effectively improve the transparency of the supply chain

According to a paper report released by MDPI, the blockchain solves the two main problems of traceability and transaction irreversibility in the supply chain, which can effectively improve the transparency of the supply chain. Transparency, as a point that all stakeholders in the supply chain value, can ensure that product information can be viewed and obtained in a timely manner, and there will be corresponding losses caused by information delays.

Supply chain transparency is primarily based on information about the movement of products along the supply chain. If companies are to maintain the ability to proactively communicate with stakeholders to gain visibility and traceability rights to supply chain operations, they will be able to ensure the visibility and traceability of information about product service, financing, and information flow from manufacturers to customers. accessibility.

Through the above, stakeholder feedback can be included in the blockchain to improve the performance capabilities of the supply chain. Furthermore, a product's history can be tracked throughout the supply chain and a picture of current activity can be clearly displayed. Companies can face environmental or social issues through transparency by articulating core values ​​to reduce uncertainty in public markets.

Many stakeholders place high hopes on blockchain for its capabilities of real-time information sharing, security, immutability and transparency. With its proof-of-work and distributed database structure, blockchain can increase the transparency of supply chains, while using real-time distributed data sharing to enable stakeholders to identify data related to product quality, location, transactions and procedures.

These capabilities of blockchain enable product traceability, allow for comprehensive product verification and product authorization throughout the transaction process, and provide end-to-end auditing based on authority across the organization. Blockchain reduces opportunistic behavior of trading partners in terms of information tampering, corruption, fraud, etc.

Thus, blockchain provides transparency to transactions between trading partners, thereby increasing trust, and blockchain strengthens the relationship between suppliers, customers, outsourcers, 3PLs and subcontractors by developing effective strategic planning tools. Relationships make the supply chain more efficient and transparent.

Blockchain technology can help build trust and reputation by bringing transparency to supply chains. Large-scale blockchain solutions are capable of completely redesigning reputation management and detecting fraud across the entire network. Blockchain consensus provides a solid foundation for the unification of views and the ability to achieve higher transparency. Establishing a decentralized supply chain based on blockchain technology rather than a centralized supply chain in the supply chain is obviously more efficient and transparent.

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Blockchain Technology Can Improve Supply Chain Flexibility

Contemporary supply chains are more complex, dynamic and uncertain than ever due to the multitude of sectors involved. So creating a flexible supply chain is the key to achieving a sustainable competitive advantage. A flexible supply chain can improve the delivery process and get products to the desired market quickly.

Business transactions are becoming increasingly volatile and global. Flexibility is achieved when a company is able to effectively respond and adapt to disruptions to competitors and changes in demand throughout the supply chain to meet customer demand, enhancing the company's competitiveness.

Rapid economic and technological developments require increased flexibility in internal (marketing and manufacturing) and external (supply and distribution) supply chains, companies with flexible supply chains can react faster in uncertain situations and provide The ability of a company to demonstrate its products and services quickly and efficiently.

In a globalized world, competition has extended to the entire supply chain, not just the company. Therefore, supply chain members need to restructure themselves to balance the organization's responsiveness to market changes by increasing flexibility.

In today's economic environment, companies outsource some business processes to ensure supply chain flexibility, which often results in a loss of control and visibility for various logistics operations. Visibility thanks to digital technologies, integrated transport and logistics systems will be achieved at all stages of goods delivery from the manufacturer to the end user. Companies need to share information directly so that it can be quickly applied to every company in the supply chain, increasing supply chain agility.

So this requires different information to ensure that the chain can function as a whole. Therefore, information that is transferred from one organ to another should be helpful, enabling it to be used elsewhere in the chain.

Blockchain technology serves customers by facilitating the tracking and tracing of all stages of order production to delivery and quick adjustments. The application brought by blockchain technology can only be implemented at specific touchpoints in the network if the parties involved accept it, thereby controlling the data security of all supply chain transactions.

Blockchain can improve supply chain visibility and enable real-time data sharing across the network. Therefore, blockchain can support supply chain flexibility strategies by reducing the number of stakeholders affected by disruptions.

in conclusion

in conclusion

Blockchain technology has become one of the most ubiquitous concepts today. As digitization has become a common phenomenon, we have begun to digitize our assets.

Blockchain can enhance the transparency and flexibility of the supply chain, thereby serving as an effective tool for building trust in the supply chain. However, Maoqiu Technology also believes that the real implementation of blockchain in supply chain applications is inseparable from mutual trust between enterprises, so as to form an effective consensus basis, improve mutual collaboration capabilities, and improve the operating efficiency of the supply chain.