Most business owners mostly have a centralized supply chain management system for their ventures. This presents vulnerabilities to single point errors that can leave the entire system open to corruption, hacking, or any other attack. Suppliers are currently tracked by using paper records and auditing, which makes it easy to falsify data and mislead businesses and consumers.
Coupled with this, consumers are demanding companies adopt more sustainable practices. Inculcating block chain technology into a business can help ensure accountability and transparency while being efficient and sustainable. Since it is a part of new technology, it faces some barriers to entry due to a lack of trust among businesses. However, adopting blockchain can provide the opportunity to create a sustainable supply chain for the firm.
Understand how blockchain can promote sustainability in business practices.
Any complexities in business transactions can be a thing of the past.
Blockchain Simplified
A primary concern many business owners have with incorporating blockchain into their management strategy is not understanding or misunderstanding what it is. To put it simply, it is a decentralized ledger that is shared across networks and prioritizes security over anything else.
As the name suggests, unlike most databases, transaction data is gathered and then stored in a 4 MB file known as a block. After it is full, a block header dash is produced, which is a hexadecimal number that ranges from 0 to 9 and A to F, from specific information being run through an encryption algorithm. A chain of blocks is created as the hash is entered into the block header along with the other data.
Many have a negative perception of blockchain because of its association with digital currency, specifically cryptocurrency. However, the benefits of embracing blockchain to provide a holistic view of all transactions will alter its image soon.
Sustainable Supply Management and Blockchain
A decentralized system that maintains transparency and keeps your transactions secure should be the norm because of its advantages, but it is not. Let’s discuss how businesses can profit and support sustainability when adding blockchain to their business strategy.
Glass-Like Transparency
A promising aspect of its adoption is the open book transparency system that blockchain has. Anyone with authority can track any transaction that they wish to observe from start to finish. This helps follow the trail from origin to the end-user, certifying the authenticity and genuineness of the supply side to maintain ethical and organic sourcing of materials. This upholds the sustainability measures that businesses market to consumers.
Optimized Supply Chain
Since it tracks the real-time movement of goods across the production cycle, it helps reduce waste and eliminate unnecessary logistics cost. As the goods are tracked throughout the process, the supply chain is optimized. This allows businesses to manage transportation more efficiently by utilizing streamlined routing options to further reduce their carbon footprint.
Accountability and Collaboration of All Stakeholders
All the stakeholders involved will have access to the database. This makes each of them accountable for their actions, as every other person can track them, thereby fostering business integrity and upholding sustainable practices. It also promotes collaboration to work towards improved business standards while fulfilling sustainability goals.
Satisfaction of the Consumers
A business can now provide the entire product journey to the consumer with ease and present its sustainability measures to their customers. This builds trust among shareholders because the data is verified and reliable. Buyers would be able to make informed decisions about their consumption based on which firm’s sustainable supply chain policy aligns with theirs.
Conclusion
Adding blockchain to your business strategy is not a matter of choice but a matter of time. Many have already invested and incorporated it smoothly into their supply chain and are witnessing improved efficiency and sustainability. It gives an upper hand to businesses, which helps them stay ahead of the curve across multiple junctions. Watch your venture soar and be sustainable tomorrow by starting to incorporate blockchain today.
