Blockchain in Supply Chain Management

A supply chain is the connected network of all the entities involved in the manufacture and final distribution of a product or service. It starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the customer. Supply chain management is the management of the flow of goods and services in order to cut excess costs and better meet customer expectations. Although supply chains have existed for a long time, the way they are managed is not as efficient as expected. The use of blockchains in supply chain management offers a number of advantages. A blockchain is a constantly growing ledger which keeps a permanent record of all the transactions that have taken place, in a secure, chronological and immutable way and can be shared by all the entities in the supply chain. The combination of supply chain management and blockchain adds trust in partners' interactions, reduces paperwork, increases security as well as transparency of records and transactions. Such an enhancement, indeed cuts excess costs and better meets customer expectations.