Supply chain transparency and traceability have become the two most critical components for companies looking to build trust and efficiency. Especially with regard to these goals, blockchain technology offers a robust solution through platforms like Hyperledger.
This blog details the major advantages accruable in the application of blockchain-based track-and-trace systems, particularly on how this is enhanced by Hyperledger in supply chain traceability.
ALSO READ: Hyperledger Burrow: What It Was and How It Worked
What Is Blockchain-Based Track and Trace?
Blockchain-based track and trace systems use decentralized and immutable features of blockchain in recording every step or journey of a product through the supply chain. Unlike traditional systems, blockchain ensures secure storage within a transparent, tamper-proof ledger. Hyperledger is an open-source blockchain platform that provides the tools needed for the development of customized, enterprise-grade solutions to supply chain traceability.
Increased Transparency and Confidence
Increased transparency is one of the main advantages gained in tracing supply chain transactions using Hyperledger. In other words, blockchain offers access to information regarding the origin, transit, and status of a product at any single point—from the manufacturer all the way to the final consumer. A very strong level of trust further develops among consumers assured about the authenticity and ethical sourcing of products. This allows compliance with regulations and standards, thus reducing the possibility of fraud and counterfeiting.
Higher Efficiency and Accuracy
Traditional supply chain management systems are inefficient in the form of manual entry, fragmented databases, and delayed sharing of information. Hyperledger solves this by providing one unified platform where all parties can share and gain real-time data with complete accuracy. Besides, automated smart contracts within the framework of Hyperledger would enable even more streamlined processes, reducing delays and reducing human error to close to nil. This results in faster decision-making and overall improvement in supply chain efficiency.
Greater Security and Integrity of Data
Security is the major concern in Supply Chain Management, wherein a lot of sensitive information is exchanged. Blockchain-based systems from Hyperledger ensure that data is securely encrypted and can be shared only with parties possessing the respective key. The decentralized nature of blockchain means there is no single point of failure; hence, it’s pretty resilient against cyber-attacks. In addition, blockchain records are immutable—once data gets recorded, it can’t be changed. This provides a very reliable audit trail for all transactions.
Cost Cutting
Implementing supply chain traceability with Hyperledger can bring considerable cost savings. Businesses can bring down operational costs through the elimination of intermediaries, process automation by means of smart contracts, and a reduction in mistakes. Moreover, as blockchain-based systems are faster and more accurate, the costs associated with product recalls, disputes and regulatory compliance will be reduced.
