Blockchain employs cryptographic algorithms to safeguard data. Once a data block is recorded on the blockchain, it becomes immutable, offering a high level of protection against fraud and data manipulation. Data breaches are a major concern in supply chain management. According to a Cybereason report, 53% of organizations have south africa whatsapp number data experienced a data breach, and 84% believe they are at risk. Blockchain’s immutable nature can substantially mitigate the risk of data breaches, thereby enhancing supply chain data’s security and integrity.
Efficient Supply Chain Processes and Cost Reduction
Blockchain’s smart contracts can automate several supply chain processes. These self-executing contracts have their terms directly coded into them. For instance, a smart contract could automatically initiate payment once a shipment reaches its destination, verified by GPS data. According to a Capgemini report, blockchain could save the retail and manufacturing sectors $450 billion in logistics-related expenses. Automation via smart contracts not only makes operations more efficient but also cuts costs and minimizes human errors.
Real-Time Updates and Improved Collaboration
Blockchain enables real-time tracking and updates, essential for perishable goods and time-sensitive shipments. Its transparent nature builds trust among parties, fostering better collaboration between suppliers, manufacturers, and retailers.