Current Supply Chain Scenario
- Supply Chain Disruptions: Pandemics, mobility restrictions, and lack of workforce have slowed the production and throughput of goods, creating challenges in manufacturing and logistics.
- Shortages and Stockouts: Sectors like automotive, electronics, food, and the pharmaceutical sector have reported problems concerning procurements of basic components and materials, leading to stockout situations and production downtimes.
- Shipping Delays and Congestion: Terminalistribution channels including ports and shipping routes have had a challenge of congestion because of the following factors congruent with those faced by global ports: demand-pull, a shortage of labor force, and scarcity of shipping containers. Through this, they have extended the time it takes for the cargo to be shipped and at the same time have increased transport costs.
- Rising Costs: Modern supply chain management has become very costly due to disruption through transportation costs and the cost of holding goods in the supply chain as well as the cost of raw materials. The rising costs have in turn made their way to the consumers either in the form of high prices charged on products.
- Demand Volatility: Recent dynamics of customer buying and consumption b due to factors like changes in working policies and the growth of e-commerce platforms and apps have affected supply chain planning and control.
- Risk Management Challenges: The members of the supply chain are in a quandary over how best they can ensure they can detect and avoid some of the emerging risks such as disruptions by suppliers, conflicts, natural calamities, and cyber risks.
- Sustainability and Resilience: There is a rising focus on developing more sustainable and less susceptible supply chains that are better equipped to perform effectively in any future disruptions, and with a favorable effect on the environment.
Blockchain for Supply Chains
Blockchain has become identified as one of the major disruptive technologies that hold great potential in the supply chain area. Historically, supply chain management has always faced several challenges such as; opacity, and weak supply chain controls to mention but a few. Blockchain, which is a distributed digital record system that is secured through cryptography, is well-equipped to handle many of these issues. Given that blockchain preserves information and transactions in an easily accessible and immutable form, this technology can strengthen trust with various parties, facilitate processing, and improve the supply chain.
Table of Content
- Current Supply Chain Scenario
- How can Blockchain Help in Improving the Current Scenario?
- Potential Benefits of Using Blockchain in Supply Chain
- Key Challenges for Using Blockchain in Supply Chain
- Case Studies Related to Blockchain in Supply Chain
- Conclusion
- FAQs