How Does Blockchain Technology Cut Costs from the Supply Chain Infrastructure?
Blockchain reduces costs in the supply chain by:
- Eliminating Intermediaries: By establishing direct peer-to-peer transactions, blockchain removes the need for intermediaries, reducing transaction fees and administrative overhead.
- Streamlining Processes: Automation of manual tasks and workflows improves operational efficiency, reducing labor costs and minimizing errors in supply chain management.
- Preventing Counterfeiting: With blockchain’s transparent and immutable ledger, companies can authenticate products and prevent losses due to counterfeit goods, saving costs associated with recalls and brand reputation damage.
Blockchain Revolutionizing Supply Chain Management
Blockchain is a distributed, decentralized, transparent, and immutable ledger that operates by a network of nodes. It offers transparency, efficiency, and security. It is the technology behind cryptocurrencies like Bitcoin, Ethereum, etc., that offers a solution to many of the challenges faced by traditional supply chains. It provides a transparent, immutable, and tamper-proof record of transactions, blockchain can dramatically improve the efficiency, security, and trustworthiness of supply chain processes. This article focuses on discussing how Blockchain makes supply chain management more efficient.