Why do we need blockchain for supply chain? Well, we live in a world where industrial revolution keeps our daily lives in check. Supply Chain is an important part of our product industry. Without the use of the supply chain, there won’t be any regulated economy but a chaotic environment.

However, due to the many struggles, the supply chain industry is failing to offer its full potential. Not to mention, many bad players are harming them both internally and externally.

But how does an enterprise deal with all the inefficiencies of its supply chain? With blockchain being the leading technology can help out here too. That’s why today, we’ll cover blockchain for supply chain only to help you figure out how it can really revolutionize your supply chain.

So, let’s begin!

Enroll Now: Enterprise Blockchains and Supply Chain Management Course

Table of Contents

Chapter-1: What Is a Supply Chain?
Chapter-2: What Is Supply Chain Management?
Chapter-3: Key Issues in Supply Chain
Chapter-4: The Benefits of Decentralizing Supply Chain Management
Chapter-5: Blockchain Supply Chain Use Cases
Chapter-6: How Supply Chain Can Work Using Blockchain
Chapter-7: Popular Enterprise Blockchains Suitable For Supply Chain
Chapter-8: Real-World Companies Using Blockchain for Supply Chain
Chapter-9: In the End

Chapter-1: What Is a Supply Chain?

A supply chain is a network chain of suppliers to manufacturer and distribution of any particular product among the end buyer. This overall chain of a network includes several activities, information, people, and resources.

Moreover, the supply chain also represents all of the steps a company takes to offer a service or product to the end user.

blockchain for supply chain management

Another cool fact is the enterprises develop the supply chain so that they can lower down their costing and be competitive at the same time.

With supply chain comes supply chain management. Both terms might seem quite similar, but they have their differences.

Usually, the steps of the supply chain actually include transforming and moving raw materials to produce finished products, transporting them, and distributing them to the customer. There are lots of entities within the supply chain, such as produces, vendors, transportation companies, and many more.

Furthermore, the elements of the supply chain will include all sorts of functions, such as getting the order form the customer. And so, the functionality broadens up to marketing, development, operations, customer services, and many more.

As we said, supply chain management is a really important part of the whole process. Without supply chain management, a company’s production line won’t work properly, and it would increase the cost even more.

In reality, in every chain, there’s someone to act as the manager. But if we get rid of even one link, then the whole chain would collapse. We will get into that part in a bit. But first, let’s see how that actually works.

How Supply Chain Works?

It all starts with sourcing suppliers. For an enterprise to offer a service making everything out of sketch is quite far-fetched. So, what they do is they source raw materials from different suppliers such as for a food production you would need raw produce.

Once they source the suppliers, they will place the order, and the supplier will provide the necessary amount and quality of the materials. After that, the materials are all taken to the factory and assembled in the production line to make the final product.

Furthermore, enterprises test out the quality before storing them in the warehouses. Once they get stored, they are transported in various distribution centers. These distribution centers work as an intermediate station between the manufacturer and the retail shops.

After that, the products are transported once again to respective retail ships according to their demand. In the end, the end user can buy it directly from the shop or order it beforehand. It all seems like a smooth line, but any element of this chain fails, then the whole system will collapse.

Five Participants in Every Supply Chain

All supply chains are different, and there can be various ways for a company to deliver to make and deliver the products. However, we will be talking about the five participants that we see in every kind of supply chain. These are –

  • Supplier

Suppliers are the organizations that supply the raw materials or components needed for a product. For example, let’s say a mobile company wants to produce mobile phones. For that, they would need many small components such as chipsets, materials to make the casing, lens, battery, etc.

In many cases, the company cannot produce every single item from scratch; even if they did, they would need access to natural materials such as gold, gas, metals, etc. Other companies that deal with these elements will then offer their services, and the manufacturing company can get all the raw materials to form them.

This is where the suppliers come into play.

  • Producers

In the case of the supply chain, manufacturers, or produces are the organizations that make the product. It includes all the companies that offer finished goods. Usually, produces collect all the raw materials form the suppliers and then make the finished product.

So, they would need to manage all the suppliers and production line to cut down their costs. Some producers even collect their raw materials themselves instead of sourcing them from suppliers.

However, not every single component is in house developed because of the high costing and time-consuming process.

  • Distributors

Distributors are a major player when it comes to the supply chain. These companies take the bulk amount of products to form the producers and then deliver bundles to respective retailers. In reality, you might know them as wholesalers. Furthermore, they sell to other organizations as well. Moreover, you would find them selling at a larger quantity than any individual consumer would buy.

Also, distributors work as a buffer for the producers as they shield them from the market fluctuations. But how do they do it? Well, they store a good amount of stock in their inventories, and if the demand rises, they start to sell out from that stock.

So, the producer won’t feel the pressure to make more within a short time. Also, in case of demands decreasing, they can just keep stocking up from the producers. So, the producers won’t have to decreases their production. In a way, distributors keep the supply chain flowing at a steady rate.

Thus, you would see distributors even to analyze consumer behavior and market the product. In addition to promoting or selling, they would also need to maintain the inventory, product transportations, and post-sale services.

They may or may not take full ownership of the product. So, they can just simply work as a broker between the customer and the producer. In the case of the range of products increase, the distributor matches specific clients with their respective products.

  • Retailers

Retailers also stock up the products and sell only a small quantity to the general consumer. Not only that but they also track demands and preferences of the customer that they sell to. Furthermore, they will attract customers by advertising and will often use a combination of convenience, services, product selection, and price as the attraction factor.

Moreover, discount retailers attract customers with their wide range of products and price range. Similarly, fast food restaurants use low pricing and convince as the draw. The marketing involves analyzing a specific group of people or targeting only a single group for better output.

  • Customers

Consumers or customers are a group of people that purchase or use any product. Here the customers don’t always mean the general public. Big organizations are also customer when it comes to the supply chain. When producers buy raw materials from suppliers, they are the customer. The same goes for distribution centers or retailers. So, in every step, there’s a seller and a buyer.

Components of a Typical Supply Chain

To better understand the whole concept of the supply chain, now we will talk about the core components of the supply chain. Therefore, we will use a hypothetical supply chain as an example. In reality, a supply chain isn’t unidirectional; it can go both ways.

Usually, when a customer doesn’t like a product, then they may ask for a refund or return the product. So, in that case, the supply chain will move back in the opposite direction.

Usually, there are eight components in the supply chain. They are –

  • Natural Resources

In the production of any product, there could be a need for natural resources such as water, gas, electricity, etc. For example, if your product needs a significant amount of water, then you will need someone that will take of that for you. Making any product now requires a vast number of natural resources.

  • Raw Materials

These are the raw materials needed for producing a certain material such as alloy, steel, farmed goods, etc.

  • Components

So, now, you have your natural resources and raw materials. Now you would need to find the bare necessities for producing the goods. For example, in the case of a laptop, the components of your product will be hard disks, motherboard, battery, etc.

  • Finished Products

Now it’s time for you to bring all of these resources, materials, and components together and create the finished goods. So, in case of the laptop example, you’ll bring the motherboard, battery, casing, etc. together to make the laptop.

Furthermore, you might need to make changes to the raw materials in order to turn it into a component.

  • E-Commerce and Retail

The product is done, and now it’s time to ship to other shops or list them on the online shops. In reality, these are the shops that will sell the finished products.

  • Recycling and Returns

In reality, a good quality supply chain doesn’t flow in one direction. The enterprises should always offer an option for the customer to return the product if they aren’t happy with it. In that case, there are returned products. Some of them might get recycled or reused. In any case, the customer will get a refund for that product.

  • Distribution

Distribution is one of the categories that occur multiple times in a supply chain. If you notice carefully, you’ll see that there are distributions in various levels within the supply chain. For example, not every enterprise is in direct contact with the general user.

A supplier enterprise won’t directly communicate with the general user, but they will contact with the producers. Furthermore, this makes the producer an end user. So, the supplier then distributes the materials to the producers.

The same way the producer distributes it to the distribution center and so on. So, in every supplier-customer interaction, there will be some sort of distribution, whether it’s in large quantity or small.

  • Transportation and Storing

It’s another component that occurs in various levels of the supply chain. In every stage, you’d need transport. And because of the globalization now enterprises need transportation services more than ever.

Furthermore, the storing process happens in every stage as well. Think about the supplier, for example. The organization collects all the materials and stores them for transportation. If they don’t store them properly, the quality would be ruined. Moreover, the same goes for producers, distributors, and retailer. The only stage that doesn’t need the storage is the general consumer.

So, this was the hypothetical supply chain component. Now that you know all about it, we’re pretty sure you are ready to move on to the next chapter. In this next chapter, we will talk about the entity that looks after the whole process of these components. Therefore, they are similar to a governing entity.

Chapter-2: What Is Supply Chain Management?

Now it’s time for us to dig a little deeper within the supply chain. With supply chain comes the supply chain management.

Supply chain management is the managing process of a production flow within the supply chain network. Here, a company will manage everything, starting from the raw components to supplying the end product.

There are basically six major phases of every supply chain management system. Let’s see what they are.

blockchain and supply chain

Phases of a Traditional Supply Chain Management

  • Planning

In this phase, the manager will plan the production line to be aligned with the customer demands and offer maximum output with minimum errors. Furthermore, when the supply chain establishes, the manager will determine the metrics suitable for a perfect chain. Usually, it would depend on the company’s goal.

  • Sourcing

Next is choosing the best suppliers that can provide the quality and the number of goods that the enterprise needs. Furthermore, then the manager will establish a monitoring process of receiving those supplies. Sourcing also refers to maintain a good relationship with the suppliers.

  • Making

Manufacturing the products, quality tests, the packaging is on this phase. So, the manager will organize every activity for producing the product and then schedule them for the delivery.

  • Delivering

Taking customer orders, scheduling deliveries, invoicing, and receiving payments is on this phase. Furthermore, everything needs to be coordinated in order to decrease human errors.

  • Returning

Managing all the defects and unwanted goods and ensuring their return to the factory.

  • Enabling

The manager will make sure that everything is within regulation. These mainly include product design, human resources, finance, sales, and quality assurance.

Chapter-3: Key Issues in Supply Chain

There are some major issues when it comes to the supply chain. Sure it looks all simple and maintainable. In reality, the supply chain is dealing with many issues, which is costing enterprises their fair share of revenues.

Let’s see what those issues are, shall we?

  • Globalization

Yes, globalization. Even though globalization did bring together the world’s economy, but it still processes a major threat the supply chain management. In reality, globalization is leading some many companies to outsource their operations from other countries.

First of all, to reduce all costing across the whole supply chain, many enterprises are changing their operation ground in countries where labor cost is cheaper. Moreover, these countries help as they offer lower taxes and lower cost of transportation. So, for many countries, outsourcing doesn’t really mean one country only; it can involve multiple at times.

However, outsourcing doesn’t only extend the production level, but it also increases the companies’ procurement system. Furthermore, having supplies scattered around the globe complicates this process.

And so, now the companies have to deal with collaborations and coordination with multiple parties across the border. This is mainly for logistics, storage, and manufacturing. Furthermore, they also have to provide customers the products with fast delivery even though the whole system is quite complex.

In the end, enterprises also need to maintain visibility at every stage so that each step of their production line stays as much as efficient as possible.

Secondly, as enterprises expand their sales into the global marketplace, they need to localize their products to attract the customers better. Furthermore, this process requires a significant level of change in the system and adaptation to different preferences and cultures.

Therefore, the inherent risks of losing visibility, control, and proper management are imminent. Moreover, it happens solely when the applications aren’t integrated. So, it will require diverse managing systems of data across another location.

An Example

Many manufacturers in Asia are using email or fax to communicate with their trading partners. On the other hand, suppliers in Europe and North America are using EDI for many years now. However, as the technology is maturing the markets could skip the EDIs entirely and focus on more API driver approaches for communication. It’s similar to skipping landlines when mobile phones started to emerge.

So, to stay ahead of the game, you would have to know whether you can tackle these challenges in an easy way or not. Unfortunately, there’s no other way to stay ahead of the game.

  • Rapid Changes in the Market

Consumer behavior depends on a lot of factors, such as personal, social, cultural, and psychological aspects. Furthermore, these things are always affected by the technological revolution and globalization.

Social media is making consumers comply with the new inventions. On the other hand, it’s also putting pressure on the enterprises to come up with relevant products and keep it interesting and fun. So, social media marketing isn’t all that great as it seems because now there’s more competition than ever.

Like globalization, rapid changes in the market is also causing many issues in the supply chain.

First of all, now products come with shorter shelf-life as the market demand always keeps changing. Furthermore, this makes the enterprises be in a pickle where they would have to design or develop new products now and then.

However, they also need to make sure that the overall manufacturing costing stays low because no one can predict how long that product will be in demand.

In reality, this usually needs a flexible supply chain option, which is quite difficult. Furthermore, the supply chain always needs to be ready for new product development. And that takes up a lot of time and management resources.

  • Features and Forecasting

Second of all, enterprises not only have to offer new products, but they also have to add features to the existing ones. To do that they have to accommodate the newer production line in the supply chain. Furthermore, it causes more resources to come up with cost friendly supply chain design.

Finally, with the markets changing so rapidly, now enterprises also have to forecast their product demands. Obviously forecasting in the changing market is quite difficult. However, if they aren’t precise, they may face a reduction in their revenues.

And so, the supply chain has to be agile to respond well in case of dips and spikes in demand.

Before companies can forecast the demands, they need to have access to all available data of the consumers and their supply chain. For example, if their actual times are smaller than their lead times, then they need to have more inventory to manage the excess stock. It would ultimately increase costing and affect other levels as well.

That’s why retailers also have to harmonize the data properly to make sure they can offer the best supply chain management possible.

  • Compliance and Quality

Apart from changing consumer behavior, social media also focuses more on high-quality goods. So, now consumers expect exceptional quality in lower pricing range. According to a recent survey, consumers read reviews, feedbacks, and comments before buying any product or services. Moreover, this also results in increases in social media platform activity.

Furthermore, it did not only increase the expectations, but it also increases the recall damages of the supply chain enterprises. Thus, now, all enterprises are in pressure to create consistent, high-quality products.

Yes, they can surely do it, if they check the quality in every level of the supply chain such as procurement, producing, packaging, transportation, and product handling. However, when it’s a matter of thousands of products each day, maintain it becomes a difficult task.

Aside from the product quality, there’s another issue called compliances. All enterprises have to make sure that they meet up worth the international and local regulation for packaging, manufacturing, shipping, and handling of the product.

Furthermore, this increases their overall burden of work where they have to prepare compliance materials such as licenses, permits, and certification. Therefore, it can become quite overwhelming for many companies and complicate their supply chain design.

Different emerging technologies such as IoT, blockchain, or smart packaging can help to change the complicated ways. But the companies need to maintain it carefully or to know how to handle them carefully. Moreover, as their 20 years of network channel isn’t suitable for utilizing big data and microservices, they would have to handle it with care.

  • Lack of Transparency

Remember how we gave an example of making laptops earlier? Most of these ingredients basically come from Asian marketplaces. As you are the consumer, you don’t actually know the true value of every single of these components, do you?

However, the lack of transparency is entirely another issue of the supply chain. If you find a defective part in your product, it becomes utterly impossible to actually pinpoint where the defective part came from or what entity was responsible for it.

You know what, let’s see an example to see how it truly can be dangerous and how much acute that danger is.

An Example

In 2006, there was a great issue in the U.S.A. An E-Coli outbreak started to spread, and the culprit was spinach. Furthermore, it affected 199 people, and among them, there were 22 children aged below 5. Moreover, 31 of those people developed some kind of kidney issue, and 3 of them died.

And it all happened just because of spinach. So, as a result, the entire food industry went into the mayhem. Furthermore, they started to look for the source of that infected spinach to stop it from spreading more.

So, people started to stop spinach completely. In the end, it took the FDA to find the source a total of 2 weeks straight, and for these two weeks, the whole industry stayed locked down. Can you imagine the loss or the mismanagement that it caused?

Not to mention the source came from only one supplier and one lot. Furthermore, for that single lot, the entire system came to a standstill. Moreover, during that time, many farmers were left penniless because of the lockdown.

That’s why the system is in dire need of full transparency. So, it’s easy to figure out the source of the problem before everything else is affected.

A proper tracking mechanism would go a long way in the supply chain.

  • Corruption

The issue in running a supply chain properly is that you would need to trust every single person to do their job accordingly. Moreover, you would also need to make sure that everyone is treating the supply chain protocols right, and no one is playing bad.

However, it’s quite normal to assume that not every single person will be trustworthy within a supply chain. In most cases, humans are prone to corruption, and so you will now have to deal with internal problems as well.

There are many instances of corruption that can cloud the overall supply chain system. Let’s see what they are –

Possible Corruption Scenarios

Someone within the supply chain may prefer certain suppliers without seeing other applications. Moreover, they can also insist on the supplier saying that they can meet the specifications. However, that might not be the case at all.

Imagine that you need to extend your product lines and for that, you need to get ahold of certain components. There could be a situation where only one supplier offers those components; however, he could be a shady person, to begin with.

Personal relationships could also affect the decision-making process of a supply chain. In the case of procurement, they could be favorable to the parties that they have a personal relationship with.

Sometimes supplier can swindle you based on your demands. Maybe you need a component that only they can supply in that case they can demand more than the current pricing.

In many cases, bribery takes a toll on the quality of your products. Furthermore, a bad supplier could bribe one of the procurement officers and get a deal with him.

Many cases, the end product quality checks could be forged to seem like it’s all high-quality, whereas, in real life, it’s not. Moreover, it mainly happens when the employees failed to meet up with the required quality with the deadline.

Another great issue could be when employees or officers start to steal from the inventory or swap products with counterfeit with no way of tracking it back. In reality, this scenario could easily take up a chunk form your reputation.

In short, there’s a lot of components and personals in your supply chain, and you can’t possibly keep track of them on your own. This is where blockchain for supply chain can help out. But we will talk about it shorty.

  • High Costs

Here come the high costing issues that every company faces throughout its supply chain cycle. Basically, there are four types of costs in the supply chain –

  • Quality Costs
  • Inventory Costs
  • Transportation Costs
  • Procurement Costs

Quality Costs

Every product that you sell would need to be at a certain level of quality. Anything less than that would cause further issues along the way. So, to make sure all of your products are on point, you would need to hire quality control experts and checkers. Obviously, that would mean more human resources and most costing.

Additionally, any product that’s below your quality level would get disposed of. So, that would take out some of the money as well.

Inventory Costs

Inventories are one of the crucial parts of a supply chain because you’ll be storing all your products there. So, as a high-end enterprise, you would need a huge storage space along with accumulating the environment to preserve the quality of the products better as well. Furthermore, it would cost you much more.

However, here’s where the situation gets a bit tight. In many cases, companies take up loans to pay for inventory costs. Therefore, they not only have to pay off the loan, but now they have to give back the added interests as well.

Moreover, having an inventory without proper security would be impractical. So, you would need additional security personals to take care of the inventory management as well. Furthermore, many companies also deal with stolen, damaged, obsolete, or expired products as well.

Transportation Costs

As you already know, there’s a lot of transportation points in the supply chain system. Furthermore, in every step, some kind of transport is needed. So, this adds up more transportation costs. On the other hand, if you outsource your components from other countries, transportation from those countries could take a huge chunk from your check.

In reality, cheap solutions aren’t enough because they’ll end up taking up more time, and that may slow the supply chain process.

Procurement Costs

Another obvious costing option is procurement costs. Here, you are sourcing all your components from another company in exchange for money. Based on your demands and components, the costing could vary.

Moreover, if your component is quite rare or only a few suppliers can offer them, then the costs would get way more up than the market value. Furthermore, if you are a large company, then you can’t personally go to the supplier and buy your materials.

In the end, you’ll be hiring officers that will take care of that for you. So, not only you’ll be spending money on the procurement, but you’ll also be paying salaries and bonus to your officer. Moreover, you would also need to train them properly before they can handle the field well enough.

  • Relatively Slow

The system of the currency supply chain management is quite poor and prone to issues. Not to mention it being excessively slow due to the lack of proper management skills. Furthermore, heavy authentication processes, inadequate logistics management, business in different time zone also make the whole process quite regressive.

On top of that, using third-party payment methods take 3-5 business days to finalize, and within this time, your materials and components remain stuck and your production line delays.

  • Poor Customer Service

The supply chain doesn’t only mean making the product and distributing it to the retailers. It also stands for proper customer management. In reality, customers play a vital role in the chain, as every product is the result of their demands.

So, if a company fails to satisfy its customer, then the company’s reputation might be on the line. For example, a customer got a low-quality product from a reputable brand. So, the customer contacted their customer support for getting a better value for the price. In that case, if the customer support can’t offer the proper services accordingly, surely the company would lose the customer.

Yes, it might seem like not a thing for just one customer but imagine when there are hundreds of them. With the help of social media, the lack of professionalism of that company would be out in no time. Furthermore, that would result in the loss of thousands of customers in the long run.

So, to make things more efficient, it’s a need for better customer support. However, the present supply chain isn’t able to offer this needed feature properly.

Blockchain To The Rescue

So far, we’ve learned that supply chains are one of the crucial parts of your business. So, there’s no way to bypass the issues that the supply chain is facing. Furthermore, the present day supply chain is prone to errors and isn’t capable of keeping up with consumer demands.

So, how do you get more efficiency in this?

Well, this is where the blockchain for supply chain comes into play.

Supply chain and blockchain go hand to hand, and we’ll tell you just how. But first, if you have a vague idea about blockchain technology, then just read on find out more about it.

A blockchain is a distributed and decentralized immutable ledger system. Here, the ledger takes the form of a block of chain each interlinked with the previous and next block to locate the exact position it was added.

Not to mention every single information on those blocks are cryptographically encrypted and also time stamped. Furthermore, here no central authority take part in managing the whole process but the group of user that uses it.

So, you see the corruption part of the supply chain is already gone in the blockchain for supply chain scheme.

However, three main properties of blockchain make it so irresistible for supply chain and blockchain partnership. Let’s see what they are –

  • Transparency
  • Immutable
  • Decentralization

Of course, there are other features as well, but these three main features are super solid for the supply chain and blockchain combo. Therefore, now you’ll see how blockchain for supply chain scheme can make a difference.

  • Decentralization

Let’s start with decentralization. It’s the core concept of blockchain technology. In reality, what it means is that any kind of information on the ledger would not have sole ownership, but everyone on the network will be a part of it.

The problem with the currency supply chain is the falsification of data. Furthermore, the procurement officers and the suppliers aren’t always 100% trustful and honest. Moreover, they falsify the data, and there’s no way to prove that the data isn’t authentic.

However, with blockchain for supply chain, this concept of falsifying will be long gone.

When everything on the supply chain is visible to all, no one would be able to own any data. However, you must be wondering that even that they don’t own the data what can stop them from changing it?

Well, there’s another blockchain for supply chain feature for that. Let’s see what it is.

  • Immutability

Well, immutability in the blockchain for supply chain usually means no one can tamper it. Moreover, any information that you add on the ledger can’t be altered.

Just imagine how much value it would add up in the supply chain. In reality, blockchain for supply chain works that way so that no one can change any of the data once they put it in. However, in case of errors, private blockchain for supply chain can offer alteration.

But in every case, the transaction needs to be verified, and the users of the network will be in sole control of that. Even though is someone tries to change the data by hacking, it would cause an avalanche effect, which would alert the authorities immediately. So, there’s no way any internal or external force can hack into the system.

It’s time to move into the last but most important feature of the blockchain for supply chain scheme.

  • Transparency

With the help of transparency, the supply chain and blockchain system can excel at its best. Yes, private blockchains do give you the privacy you need; however, it also offers transparency. It means that people on the network will be accountable for their actions.

Whatever goes on the network is visible to all or selectively visible. So, people would be able to see what another person is doing. However, in the case of an enterprise, the system is a bit different as it gives more power to the higher authoritative personals. Because of the nature of the enterprise companies, making it, a public channel would be much more difficult to handle.

So, it would work as the internal networking system with transparency within the employees of the company. And that’s how you make a solid supply chain and blockchain duo.

Read more about the History of Blockchain Technology.

Chapter-4: The Benefits of Decentralizing Supply Chain Management

blockchain supply chain

If you deploy blockchain for supply chain management, you can improve the overall efficiencies in many ways. In reality, supply chain management requires lots of coordination within the data system. When the system is slow, no management in different locations and the revenues are going down then blockchain in supply chain is a beacon of hope.

You can easily alter the legacy frameworks with blockchain supply chain examples and enjoy easy and fast information sharing. Moreover, you will also be able to prevent counterfeits and increase overall customer satisfaction.

Furthermore, blockchain for supply chain exists to get rid of the unnecessary bureaucracy and helps to trim down the unnecessary resources excellently. So, it’s easy to just redesign the new supply chain and blockchain scheme without any issues.

Anyways, now we’ll dive into the benefits of blockchain for supply chain management and see what benefits it offers.

  • Transparent Ledger System

Blockchain in supply chain helps to offer more transparent access in every supply chain operations. Furthermore, every time any product goes from point A to point B, it will be logged in the ledger. So, in short, it would create a trail from where the precut came to be from point A to point B. Furthermore, the enterprises can use this in case of a recall.

On the other hand, using these customers will know exactly where the product came to be, and it will finally be a transparent platform. It will also help keep other people accountable for any mistakes they might have made on the ledger.

  • Tracking In Real-Time

With transparency comes the real-time tracking option. Yes, with blockchain for supply chain management, you can track your products in real time! Furthermore, you can also know what condition they are in, and exactly pinpoint their location as they are on the move.

For example, imagine you ordered materials from the supplier when the supplier attaches the RFID chips to the products you’ll know exactly what condition or location they are.

Supply chain management can then track it from their PC using the blockchain supply chain examples. Moreover, with that, they can estimate how much time it would take the materials to reach the factory.

Once they are here, they can track the production process and check the environment of the inventory whenever they want. So, they won’t have to even step in there in person to know what’s exactly going on in the production line using the blockchain supply chain examples.

  • Faster Transactions

Another great benefit of the blockchain for supply chain scheme. In reality, there’s a lot of waiting around to get the payment at different levels of the supply chain. But with blockchain for supply chain scheme, it would be a piece of cake.

Blockchain supply chain examples have the potential to break Visa’s record of transaction every second, which is 10,547. Speed is one of the lucrative features of every payment system and with blockchain supply chain examples you’re getting everything at one place.

In reality, the faster the blockchain for supply chain platform is, the better it can process all the transactions. So, in short, blockchain in supply chain has the most potential to scale than the typical Web 2.0 system.

Another great fact about the blockchain is supply chain management is the micropayment options. Therefore, you are not only sending large amounts but smaller amounts as well in mere seconds! How cool is that?

  • Trustless Chain

Next comes the trustless benefit of the blockchain for supply chain management. In reality, the supply chain management has to trust that the product would be authentic, and it would deliver within a certain time. However, with blockchain in supply chain system, you can know that for sure.

So, there’s no need for putting your blind trust in any parties at all. Also, in case of payment, many companies stay in utter uncertainty that they might get the payment. However, blockchain in supply chain system comes with smart contract integration. The smart contract will automate the payment process once the delivery is made.

Therefore, companies can just take a breath from all the uncertainty once and for all.

This process can get integrated into different levels of the supply chain. For example, vendors can use it to pay manufacturers, and consumers can use it to pay up the vendor.

  • Product Certification

Product certification is a must when it comes to the supply chain. How else can manufacturers prove that the product is authentic and isn’t a counterfeit? This is where blockchain for supply chain management steps in.

Employees can use the blockchain supply chain examples to certify all the products in every industry. Furthermore, it can help to know whether the product was replaced with counterfeit or not. Moreover, the consumer can easily check up on the blockchain in supply chain platform and know for sure that the product is authentic.

Every year millions of money are wasted due to the fraudulent activities and counterfeit products. However, with blockchain for supply chain management, it would finally be over.

  • Greater Security

The supply chain needs to be the ultimate secure place. With the help from the blockchain for supply chain management, now it really can be ultra-secure. As the ledger is immutable, no one can tamper with the data. Furthermore, their multi-layer security protocols in the supply chain and blockchain keep the hacker far away from the system.

As a result, there’s no single point of entry. If a hacker wants to attack the blockchain in supply chain system, he would need to attack the network with multiple devices all at once, which is quite impossible. In reality, that takes up more resources than he’ll actually gain so, it’s not really worth it.

  • Lower Carbon Footprint

With manufacturing products comes the added carbon emissions. However, with the help from blockchain in supply chain system, the need for a return would be gone. How? Well, it’s because with blockchain supply chain examples you can control the quality more accurately.

So, in every stage, you can produce high-quality output consistently. Thus, the return or recycle process of the supply chain will reduce drastically. And it would not only drive up revenue, but it would also get rid of the extra product making process. Therefore, less carbon footprint.

So, blockchain for supply chain doesn’t only ensure more revenue, but it also ensures a greener production line.

  • Reduced Costs

Last but not least, reduced costing offers more benefits than ever. In reality, the main target of every supply chain management is to design a cost-friendly production line, no matter how the market shifts.

But with blockchain in supply chain management, it would be finally possible. Furthermore, it will not only lower the costing on every level, but it would also reduce errors and increase revenue. With the help from the blockchain for supply chain scheme, the need for many middleman’s is gone.

So, the extra salary, the mismanagement losses would be gone for good. Also, the duplicating process seems to take up the extra costing too. With blockchain supply chain examples, there’s reduced duplication.

With fewer peoples and faster system, it will drastically cut a lot of costs down effectively.

Chapter-5: Blockchain Supply Chain Use Cases

  • Peer-To-Peer Transaction Settlement

The peer-to-peer transaction is one of the blockchain applications in supply chain. Any company nowadays is willing to invest in a faster transaction process that is significant and continuous. Furthermore, throughout history, companies experienced a drop in cost when they used a faster settlement process.

On the other hand, cross-border payments in the supply chain drain more than $1.6 trillion every year. So, it’s not just about a peer-to-peer transaction but also about improving the revenue. With blockchain for supply chain in the system now enterprises can truly leverage the benefit.

Furthermore, there isn’t any third party involved, which makes it even more secured. Moreover, payments are automated with smart contact integration, so there are no added risks as well. What more can you want, right?

  • Audit Transparency

Audit transparency is another one of the blockchain applications in supply chain. There had been some great pitfalls in history due to bad auditing services. Furthermore, your brand name could be in jeopardy if you can’t maintain the standards of the law. So, any single mistake on the chain comes with consequences along the road.

Anyhow this situation is totally avoidable if the enterprise starts to use blockchain for supply chain use cases. Not only they’ll get a safe platform for auditing processes, but they would also get rid of errors. Furthermore, the platform can give you a fully transparent view of any inefficiencies that you can easily avoid.

Ultimately that would help the auditors make wiser and safer choices throughout the chain.

  • Tracking Consumer Feedbacks

Nowadays, with social media’s everywhere consumers can interact with their favorite brands more freely. Thus, many consumers think theta companies should offer products in a way that doesn’t leave them feeling guilty in any way.

Also, they want companies to be more communicative and social with their customers. Furthermore, the majority of these consumers are more interested in spending money on a greener brand. That’s’ why ultimately you’ll need to track the customer feedbacks accordingly and know just what they want.

If you do not use customer advice, eventually the customer will lose interest or feel unwanted and will stop buying all the goods.

With blockchain for supply chain, the companies can track all customer feedbacks and work on that. More importantly, they can utilize the blockchain applications in supply chain with more info about the process.

  • Accurate Costing Info

Supply chains have to deal with a lot of mismanagement when it comes to costing or budgeting. Thus, one single mistake could lead to millions of revenues lost. According to a study, more than 88% of the enterprises have cost reduction aim, but only 17% can actually do that.

So, you see the disconnected data management isn’t helping the supply chain industry in any way. That’s why blockchain for supply chain management would be a great option to choose here.

With blockchain, the enterprises can get a single source of information to collect all the data and use that to manage their accounting info. That’s why it’s one of the blockchain applications in supply chain management.

  • Better Shipping Data

There’s no doubt that the impact of an accurate delivery system possesses a direct impact on brand value. Furthermore, one study showed that more than 89% of consumers worry about the delivery process, and 83% worry about the product getting damaged during the delivery.

Not to mention that the consumers not going back to a retailer once they get a poor delivery from them. So, not only it’s hurting the brand value but other participants such as distributions and retailers as well. However, many brands still fail to offer a high-quality delivery system as there isn’t better communication during the shipping.

In reality, to reduce the issue, blockchain applications in supply chain can truly help. With their real-time viewing capabilities and proper tracking system, it can offer better shipping data. Thus, companies can communicate much better and efficiently and raise consumer satisfaction.

  • Avoiding Compliance Violation

Compliance costs in every supply chain are high, and moreover, they are extremely tricky to maintain. However, if enterprises ignore these costs, it could lead to violation fees that can chunk up a lot of revenue.

Due to globalization now, companies work in different regions. And every single region comes with its own set of compliances. In reality, when maintaining all the locations in a vast supply chain, there could be rules that many ignore.

So, as a result, they are stuck with a huge fine and criminal charge. To reduce this blockchain applications in supply chain can be a great solution. Not the only blockchain can keep track of all the compliances; it also makes management quite easy. Thus, it can help in avoiding compliance violation along with preventing any jail time.

  • Provenance

Provenance is a huge challenge when it comes to supply chain. Many companies fail to provide additional information about the authenticity of the product. Moreover, many don’t really use many resources to check if the raw materials are really high-quality or not.

In a world where counterfeit is taking over the economy, knowing what you own is authentic is extremely important.

Furthermore, it’s mostly for consumers, as they deserve the product they are paying for. However, as every day there’s a vast majority of products produced and even sold, it gets harder to prove that they aren’t counterfeit.

To make things simpler, blockchain applications in supply chain can help out greatly. Furthermore, the companies can verify the authenticity of the blockchain for supply chain network. Moreover, they can also add the information and proof in the QR code of every product they make.

This way, both parties get Provenance without any hassles.

Want to know how to get the perfect Blockchain proof of concept? Check out our guide!

  • No Human Error

There are tens and thousands of employees in a large supply chain industry. Full use of robotics is still not a part of the production line, not to mention in management you’d need people with skills. However, humans are prone to errors. Thus, over $50,000 – $150,000 is lost due to simple human error.

It’s basically due to manual processing. Not only it takes up more time, but it’s also full of erogenous data. To help out in this situation, blockchain applications in supply chain can streamline data processing on the net.

Automated transactions, data entry, record keeping, tracking the process makes the blockchain for supply chain system a lucrative technology. Thus, companies can now save millions if they invest in blockchain for supply chain.

  • Food Safety

Food safety, one of the biggest concerns of any food industry on the market. In reality, food industries have to extra effort to keep every single material out of any contaminations. Because of the delicate nature of every material, the companies need to be extra careful and offer high-quality products.

We think you already know how E.coli contamination broke down the entire food industry and left many people jobless. That’s why food industries need extra precautions as to not face any similar situation.

However, blockchain applications in supply chain can help in this regard. It can ensure better tracking and quality checks to avoid any contamination. So, people, in general, can get food safety in the industry made products using blockchain for supply chain.

  • Automation

Automation processes always offer better cash flow and reduce the need for taking big loans from the bank. Yes, there’s a lot of digitization tools in this sector, but over 33% of manufacturers are disappointed with it.

Moreover, more than 94% of manufacturers think that automation tools can really change the scenario of the supply chain line. Well, the link is already there, great visibility and automation will help the manager to reach a greater speed of data.

In reality, blockchain applications in supply chain are the most advanced and reliable automation processes of all. Using the smart contract feature and tracking it can automate the payment when certain rules are met.

So, it’s easy cash flow for everyone on blockchain for supply chain platform.

  • Reducing Counterfeit Products

The $4.2 trillion of pirated goods and counterfeit products will damage the global economy. And to make it worse because of that 5.4 million jobs are at risk by the year 2022.

While the customs and border control are trying their best to prevent counterfeit goods from entering, however, no human force is capable of handling the nature of fake goods.

To deal with counterfeit goods, what better way than to issue more QR, RFID chips, or NFC codes to track the products. Furthermore, blockchain applications in supply chain are more than capable of handling the burden.

With blockchain for supply chain enterprises can track their deliveries and keep a strict watch to see whether their goods are getting replaced or not.

Thus, the end-to-end connection can relatively reduce counterfeit products for good.

  • Enforcing Trade Policies and Tariffs

Enforcing trade policies is a big concern when a manufacturer ships from another country. There are certain regulations specifically for trades, and many seem to overlook it. Also, more than $200 billion business secrets get stolen each year by various parties. Just putting tariffs in place won’t stop that from continuing.

Even if enterprises put tariffs in place, many can just funnel goods and slap a “Made in” sticker to avoid higher costing. That’s why many experts believe blockchain applications in supply chain will help to help enforce trade policies.

Moreover, it can also stop stolen goods from funneling lower costs. As a result blockchain for supply chain again takes the win for the betterment.

  • Identity Verification

The supply chain needs proper identity verification in every stage of their lives. In reality, there are too many employees in the industry, and keeping track of them manually is almost impossible. Also, many enterprises have sensitive information that they want to shield from the outside force. Thus, only giving access to the employees that have proper verification is a must.

In this case, blockchain for supply chain integration would help a lot. This technology offers a solid authentication process that the hacker would not be able to breach. Thus, only the people that have proper identification can enter the chain. Furthermore, only personals that have higher authority can access the files.

  • Inventory Management

Many enterprises often lose track of their inventories. Obviously, inventory management is a must as it helps to know how much storage they have left and what the conditions of their products are. If they lack proper management, it opens doors to more fraudulent activities and bad data analysis.

As a result, management falls apart. Therefore, blockchain for supply chain management can change the scenario for good. As it has the ability to track goods and manage the inventory without groundwork, no one can tamper with inventories again.

Moreover, it would help to manage the product shelf life as well.

Check out our Ultimate Blockchain Cheat Sheet to learn more about blockchain the easy way!

Chapter-6: How Blockchain For Supply Chain Can Work

Many of you might wonder how a supply chain can actually work using a blockchain platform. So, to help you understand it better here’s a hypothetical supply chain and blockchain platform. Let’s see how it works.


In this step, we will first start with meeting the perfect business partners on the blockchain for supply chain platform. So, using the blockchain in supply chain platform, both parties can look for their authenticated suppliers or manufacturers.

As every person on the marketplace will have to show proper identification before getting access to the network, there would be no fake company issues after two parties find each other on the platform they can reach an agreement.

Furthermore, using smart contracts, the manufacturer can place the order in the blockchain for supply chain platform.


The supplier then collects all the raw materials of the order and uploads their quality test documents in the blockchain in supply chain platform. Furthermore, the manufacturer checks the authenticity of the documents and clears the order for transportation.

Once the supplier gets the confirmation, they tag all the material with RFID chip for proper tracking and informs the producers. After that, they will ship the materials and notify the producers.

Therefore, both parties will track the shipment in real time and make sure that the product reaches the destination in a good environment.


Once the manufacturer gets the product, the smart contract will automatically initiate and release the payment to the supplier. Now it’s time to track the production line in every stage with the help from the blockchain for supply chain scheme.

Furthermore, using the supply chain and blockchain platform, they can also see the condition of the products in every stage. This will allow them to anticipate how long it will take a product to finalize.

After the finished good is ready, the quality control manager will test out the products and upload the test documents for proper validation. Furthermore, every product will get their relevant QR code and RFID chip added before moving them in the warehouse.

Next, the authority will monitor the warehouse storing process using the blockchain for supply chain platform. And once it’s all done they will initiate another smart contract with the distributor and ship the products. Therefore, everything will go on in the blockchain supply chain examples.


In this stage, the supply chains shift to the distributors. After tracking the shipment from the producers upon receipt, the smart contract will automatically release the payment. However, they might choose to store it in their warehouse or ship it directly to the retailers.

In any case, both scenarios would need blockchain for supply chain platform for monitoring.


Retailers come into play in this one. The same tracking process goes here, as well. Therefore, when the products reach certain retail points, the payment process will initiate automatically. However, blockchain in supply chain platforms can help out in other ways as well.

For example, it can help forecast consumer behavior based on market analysis. So, using the supply chain and blockchain platform retailer can know exactly what the consumer wants.

Retailers can also offer blockchain powered application for the end-user. It would help the end user place the order smoothly without any hassles.


It’s the last step of the blockchain for supply chain, and the end-user will be in the sole power in this one. Firstly using the app, they can track their orders from the retailer shops. Secondly, they can scan the QR code to know whether it’s authentic or not.

Lastly, if he/she faces any issues, they can directly complain to the customer service using the app and get the refund or exchange the product. So, you see blockchain supply chain examples can really change the ways how the typical supply chain works.

See How Blockchain Revolutionizes The Trade Finance!

Chapter-7: Popular Enterprise Blockchains Suitable For Supply Chain

blockchain for supply chain

Okay, so there’s a lot of enterprise blockchains on the market. However, not every single one of them is suitable for the supply chain. Also, there are lots of enterprises implementing blockchain. We’ve handpicked popular enterprise blockchain just for you. So, let’s see what they are –

  • Hyperledger

Let’s start with one of the major players in the market. Hyperledger is more than capable of handling any kind of use cases. So, when it comes to supply chain, it can offer lucrative features. Blockchain supply chain companies can easily integrate Hyperledger with their existing legacy networks.

Hyperledger is the product of Linux, and it came to be form 2016. Furthermore, Hyperledger seems to have a lot of collaborations under its wings – 185 to be exact. Moreover, the best part about this blockchain platform is that it offers ten different projects that offer some specific traits.

So, blockchain supply chain companies can just take whatever they need. Now enough about Hyperledger. Let’s see what it offers in blockchain for supply chain management.

What Does It Offer?

Permissioned Blockchain Network

Well, first of all, blockchain supply chain companies can easily utilize their permissioned platform. In reality, the permissioned platform makes sure that every user on the network will have an authenticated identity.

Moreover, the best part is that every single person on the network would be then credible for any misdeeds they are doing. And so, you can easily locate them if anything seems fishy on the blockchain for supply chain platform.

High Scalability and Performance

Hyperledger is offering all blockchain supply chain companies a modular architecture. Furthermore, this modular architecture helps to scale in large amounts and divides up the transaction process.

Therefore, you get a massive boost. So, the overall performance of the blockchain for supply chain enhances greatly.

Private Data Availability

There is some certain sensitive information that the blockchain supply chain companies want to keep private. However, with Hyperledger blockchain for supply chain platform, you can do exactly that!

Confidential files with remain hidden for all and only the authenticated user can access it. So, everyone will see the information that they need to know.

Rich Queries

In reality, blockchain supply chain companies would have a hard time understanding the coding language. Well, not every businessperson is a coder, right? To help them out, Hyperledger offers rich query languages to help them search out anything easily on the ledger. That’s how the blockchain for supply chain platform helps out!

Pluggable Architecture

You can plug in and plug out any feature on the blockchain for supply chain network. Furthermore, it helps to increase the flexibility of the blockchain supply chain companies.

 Check Out Our Guide On Blockchain Interoperability Now!

  • Enterprise Ethereum

It’s another one of the enterprise blockchain suitable for the supply chain. Blockchain supply chain companies need to have a backup as they are new to the technology. And so, enterprise Ethereum will help them out in every way.

Furthermore, if you develop a new kind of blockchain for supply chain management platform based on Ethereum, they will officially certify you. Just like Hyperledger, they are a big enterprise with 250+ members.

Basically, they have two kinds of the platform, both public and private. In the private one, you can initiate transactions within a private chain.

What Is Their Vision?

Open Platform

Their primary vision is to offer an open platform for every blockchain supply chain companies. Furthermore, they also want to establish that they don’t offer a product but a standard for developing blockchain for supply chain management.

Authoritative Access

Enterprise Ethereum will help all the blockchain supply chain companies with developmental and operational guidelines for any Ethereum projects. So, if you launch a blockchain for supply chain management process, they will look over the development. Therefore, you’ll be getting the best of the best tech support right from the start.

Provide Governmental Support

Blockchain projects mainly face issues with governments. However, with Enterprise Ethereum blockchain for supply chain on your side, you won’t have to worry about a thing. Furthermore, EE will look after all of the technical issues entirely for blockchain supply chain companies.

Get Lucrative Features from the Public Domain

There’s also a public Ethereum blockchain. So, any changes in the public domain will affect the private ones as well. Furthermore, the blockchain for supply chain companies can mainly take the features that they need. So, no extra feature will slow down the blockchain for supply chain management platform.

Developing Standards

The EE will utilize all the standards form the past public blockchain platform, which is live from 2015. Furthermore, the blockchain supply chain companies then can get the better version of the Ethereum enterprise.

  • Corda

R3’s Corda is actually the commercial version of the Corda software. Moreover, it’s an open source mainly for enterprise blockchain users. In short, if you want to get a blockchain for supply chain that revolves around the quality of services or network infrastructure, then Corda is your best bet.

It started the journey back in 2015, and now it has over 200 members among its midst. However, Corda is primarily for financial organizations. But they are starting to expand to other sectors, including the supply chain.

What Does the Corda Enterprise Offer?

Application Firewall

One of the best features of the Corda blockchain is the application firewall. Furthermore, this application firewall will offer support for the blockchain for supply chain platform scheme. Moreover, the application firewall supports proper authorizations.

So, in a way, when any third party tries to get into the blockchain for supply chain platform, it will reject it immediately. Furthermore, users will proper skills will get control of access management. Thus, every user can look after the network themselves.

You must be wondering that’s great, but how do I communicate with the outside world? Well, it’s simple, the network keeps the intruders out but doesn’t limit the users from accessing outside data. To make sure no one can breach the channel, they offer extra security measures.

So, you see Corda can be a perfect platform for blockchain for supply chain management.

Are There Any Features?

Not only just a firewall, but there are more features for every blockchain for supply chain scheme. So, Corda will give you all the tools you will ever need for optimizing with the IT environment. Therefore, with that, you’ll get monitoring options, governance, recovery procedures, and high-availability. Furthermore, you’ll also get high-end nodes, customer support, and release schedules.

Nonetheless, the Corda blockchain for supply chain also supports Oracle and SQL databases. So, it would be easier for your developers to integrate it.

  • Quorum

Quorum is the creation of J.P. Morgan, who used Ethereum as the root technology. Even though he used Ethereum, there’s a lot of differences between both parties. Furthermore, the environment is explicitly designed to handle all the pressures of enterprises like supply chain management.

Therefore, using Quorum as the technology in blockchain for supply chain platform would be exceptional.

Features of Quorum

Node Managing Authority

Quorum enterprise blockchain determines a designated authority, and that person helps to approve which nodes can enter the platform. So, the platform won’t be a public domain, but it will remain private. Furthermore, only authorized users can enter the network. Mainly these persons would be business partners and in-house employees.

Private Transa ctions

The best feature that you can use on your blockchain for supply chain platform is the private transactions. It means that you will be able to settle the payment privately with only your business partner having access.

Furthermore, no user can see or access the history of private transactions. It would only be visible to the transacting parties in the blockchain for supply chain platform.

Agreement through Voting

Another great feature of the Quorum is that it doesn’t have any energy consuming consensus algorithms. Furthermore, it will run the blockchain for supply chain platform on Quorumchain. It’s a voting mechanism that let’s faster transaction happen.

Moreover, the algorithm assigns voting rights to special users, and only they can participate in the agreement. So, you will end up with a scalable blockchain for supply chain platform.

High-end Performance

The performance of the supply chain networks based on Quorum is outstanding. If you compare it with other players in the market, you’d see it’s quite superior. Furthermore, you will get a high transaction rate in your blockchain for supply chain platform.

Want to Which Enterprise Offer BAAS Services? Check Out Our Blockchain As A Service Guide Now!

Chapter-8: Real-World Companies Using Blockchain for Supply Chain

  • De Beers

De Beers’ is using supply chain blockchain projects to track down diamonds from miners to the retailer. At present, they already tracked 100 high-value diamonds using the blockchain for supply chain platform. Furthermore, De Beers is one of the biggest diamond producers on the market. Moreover, they want to use the platform to verify the authenticity of the diamonds.

And to make sure that the diamonds didn’t come from a zone where they are used for violence. In reality, other five diamond manufacturers invested in the pilot project called “Tracr.”

“Tracr” is an excellent addition to the supply chain blockchain projects list. Anyways the five manufacturers include –

Venus jewel, Rosy Blue NV, KGK Group, Diarough, and Diacore. Recently Alrosa also joined the project.

  • BHP Billiton

You must hear about BHP Billiton. They are one of the world’s largest mining firms at present. Furthermore, they have been enthusiastic about blockchain from the start and is a part of two big companies – Hyperledger and Enterprise Ethereum Alliance.

At present, they are using supply chain blockchain projects to record the movement of wellbore rocks and also to collect fluid samples in the ledger. Furthermore, they are using blockchain for supply chain system to secure real-time data during the delivery process.

There are also web applications designed specifically for vendors. Therefore, they can use it and know the exact status of the blockchain for supply chain platform.

  • Dole

Dole is using blockchain for supply chain platform to prevent food contamination. In reality, Dole is a food company that offered a sobering account for how toxic the food industry has become, while they run on antiquated methods.

According to Dole, they believe blockchain for supply chain is the ultimate solution for reducing the scope of outbreaks. Moreover, they also think supply chain blockchain projects can really offer traceability and transparency.

That’s why they are working with IBMs Food Trust in order to eliminate food contamination food good. However, everything is still running on trial phases.

  • Subway and Tyson

Tyson and Subway joined a food supply chain traceability solution. Furthermore, the provider is FoodLogiQ (a SAAS provider). At present, they have a pilot project where several companies are interested in trying out.

Moreover, the primary aim of the supply chain blockchain projects is to seek the challenges and opportunity in blockchain for supply chain solution.

According to the food companies, customer demand for full transparency is the main reason for the project launch. In reality, the target is to give the customer a peek inside the production line and let them know that no chemicals are added in the supply chain.

  • Nestlé and Carrefour

World’s largest food company, Nestle and France’s one of the biggest supermarket Carrefour is launching blockchain for supply chain project. Furthermore, the project will offer greater transparency in the food industry.

According to the companies, they worked with IBM for the project, and it took only six months to complete it fully.

In reality, they are only offering it for one product called Mousseline Puree. With the help of the app, the customers can scan the QR code and know exactly where the potatoes came from along with additional information.

That’s why it’s a great blockchain supply chain examples in the food industry.

  • Unilever

Unilever is also on the run for the supply chain blockchain projects. In reality, they are using supply chain blockchain projects to manage the tea supply chain process. According to them, they currently launched a blockchain project that uses the tech to manage transactions on the supply chain.

Also, the company is partnering up with banks and many start-ups to track the tea farmers in Malawi as they are the main supplier. Moreover, the supply chain blockchain projects could go over 10,000 farmers as well.

Another project of Unilever is to create transparency in the digital ad supply chain. For that, they are taking tech support from IBM.

  • Walmart

Walmart is using IBM’s supply chain solution to fuel its blockchain for supply chain food traceability project. Furthermore, they plan to track the food from the farm to their store in real-time on the supply chain blockchain projects framework.

Walmart is working with IBM for a long time now, specifically form 2016. Moreover, they were already using other supply chain blockchain projects to maintain production. However, now they will ask the suppliers to offer complete transparency in producing leafy greens.

But why are they doing this? Mainly because Walmart wants to offer its customer the highest level of quality and reduce any kind of contamination in the food. So, what better solution than the blockchain for supply chain, right?

  • Tomcar Australia

Tomcar Australia is a Melbourne car manufacturer company, and they have been using bitcoin to sell and buy their products. It’s not exactly a blockchain for supply chain project but merely a way to settle the payment within the production level with digital money.

According to them, 40% of their materials are important on a global scale. So, using a blockchain based solution is much more suitable for them. Furthermore, not only do they pay with bitcoin, but they also accept bitcoin as the payment method from their customers.

So, now customers can just use blockchain platform and buy their desired car whenever they want.

  • Abu Dhabi National Oil Company

Abu Dhabi National Oil Company is working with IBM to secure a blockchain for supply chain project that tracks the gas and oil production. Furthermore, ADNOC is a state-owned company, and they deal with more than 10.5 cubic feet of gas and 3 million barrels of oil daily.

So, as far as blockchain supply chain examples go, this one is huge. The pilot project already tracks the financial values and quantities of everting bilateral transaction. According to the company, the project might be a one of a kind as it’s the first one for gas and oil supply chain. Furthermore, the project is highly scalable and can handle their high workload easily.

  • Martine Jarlgaard London

The fashion designer Martine Jarlgaard is utilizing future technology quite promptly as we can see. She will be using supply chain blockchain projects to track the garment industry to see whether everything is on point or not.

So, the fashion industry is also revolutionizing with distributed ledger technology. At present, the pilot supply chain blockchain project will revolve around her own collections. Furthermore, she will be partnering up with Provenance and another company called A Transparent. With help from the technology, the fashion designer will track the raw materials to the finished garment.

  • Plantaze

Plantaze is a wine producer that’s going to track their production of wine and eliminate counterfeit wines for good. So for that, they are using OriginTrail’s pilot blockchain for supply chain project. At present, the first phase of the project is already done.

Basically, counterfeit wines have been sweeping the marketplace for a long time, and over 50% of them are fake. Not only it increases health issues, but it also decreases the brand value.

Therefore using the smart sensor supply chain blockchain projects, the company can easily track all their deliveries and make sure people get the real product.

  • Kahawa 1893

Kahawa 1893 is one of the coffee brands that’s changing the way how the coffee supply chain works. Using Bext360 services, they will be utilizing blockchain for supply chain platform to track the origin of the coffee.

As they have a very selective approach to choosing coffee beans, it’s highly necessary that the suppliers stay true to their agreement. Furthermore, they will not only track the origin but also track the processing of coffee beans and inventory management.

Moreover, as they donate 25% of their revenue to support the woman in the production line, the payment system will also follow blockchain tech.

  • Novartis

Novartis is a Swedish pharmaceutical that’s tracking the medicine temperature using supply chain blockchain projects. Furthermore, they will make sure to track them in real-time so that they can know for sure that the medicine isn’t expired.

On the other hand, identifying the counterfeit product is also a possibility because of the blockchain for supply chain management scheme.

In reality, Novartis is trying to create a consortium that will connect other pharmaceutical industries in Europe as well. Furthermore, it will also connect other hospitals, educational institutions, etc. So, basically, every single entity within the healthcare community will use blockchain for supply chain.

  • Anheuser-Busch InBev

Together with BanQu, the company is launching a supply chain transparency platform for Zambia. Furthermore, it will focus on the traceability and transparency of the cassava crop value chain. Moreover, it will also empower over 2000 small scale farmers in the region.

The identity management system of the BanQu will help the farmers get bigger opportunities. It’s because big brands are looking for improving management and improving their supplier reach. Also, by using the platform, the brewer company can produce high-quality starches for beer production.

In the end, supply chain and blockchain project is unlocking a huge platform for the brewer companies to get high-quality raw materials easily.

  • SAP

The SAP is launching a blockchain based supply chain tracker that will help any company to track their goods from the start to the very end. At present, they are working with two dozens of tech, pharmaceutical, and shipping companies to try out their invention. However, we still don’t know if more brands are using SAP’s solution.

Mainly their target is to focus on the drugs and food industry and add more value to the supply chain management.

Many companies such as Tate & Lyle and Natura, Naturipe Farms, Johnsonville, Maple Leaf Foods, etc. is currently involved in the process.

  • Rolls Royce and Airbus

Yes, some of the biggest aircraft part makers and aerospace suppliers are now exploring supply chain and blockchain solutions. These companies are Roll-Royce, Airbus, Sabre, and S& Group. Furthermore, they are currently using a blockchain powered solution to track the parts and the process of the supply chain.

There’s a huge problem with transportation parts as most of the times they are stolen or counterfeited. Thus, they are in dire need to track all the supplies to make sure every part is authenticated because it’s a matter of consumer safety.

  • Ford

Ford is working with IBM to track its raw material cobalt from the suppliers. Furthermore, they want to make sure that the cobalt they are getting is high-quality. Moreover, they partnered up with other companies to support the mining process and tracking process.

Another great aspect of the blockchain for supply chain project is validating the minerals companies use in consumer products. Anyhow they will add the data in the ledger when the cobalt is properly tagged and packaged. And this way they can really ensure better quality control using the decentralized platform.

Check Out Our Blockchain For Enterprise Free Training Guide Now!

Chapter-9: In the End

So far, we’ve talked about what supply chain is and how the supply chain management works. Most importantly, we’ve pointed out the benefits and usefulness of the blockchain in supply chain management.

To make things more real now, you know that there are multiple industries already trying out this new tech. Obviously, blockchain being a rather new tech, it will come with some issues.

But the benefits easily outrun the issues as it does take the supply chain industry in a more digitized version. Now that you know all about it, it’s time for you to step up your game. With blockchain on your side, you won’t have to deal with legacy supply chains anymore.

Want to know more about Blockchain Transformation? Check out our Blockchain Transformation playbook!