Supply chain security thanks to blockchain technology
Resilience of the supply chain to threats that may occur along the way of the entire process is an unquestionable basis for every business. Regardless of how complex the company structure is and how extensive the entire process is, proper supply chain management tactics and tools will not only improve the quality of services provided, but also protect the company against potential financial losses.
What is the security of the supply chain?
In previous years, up to 60% of the companies admitted that disruptions in their supply chains caused a 3% decline of key indicators. In up to 40% of enterprises irregularities in the supply chain resulted in a reduction of the total return rate for shareholders.
Security of the supply chain should be based on the company strategy linked with the management process and implementation of an appropriate IT system that allows tracking the delivery from the order to invoice payment.
A secure supply chain should, however, be able to adapt to the changing situation – Adaptive Supply Chain. It means that:
- The strategy assumes possibility of adjusting the process to the changing market conditions
- The process can be modified in response to changes in the execution environment at various stages
- Management envisages introducing internal changes in the supply chain itself, using structural and functional reserves, and, above all, IT systems.
How to secure the supply chain?
As we have already mentioned, a well-thought-out strategy is the basis for the process security. To increase the security of the supply chain, the development of this area should be directed to:
- Increased flexibility of operations
- Sharpening the sensitivity to the needs of the recipient
- Developing resistance to disruptions in the supply chain
Securing the supply chain is also associated with conscious risk taking and proper management of it. In order to have a chance to minimize the effects of failure or disruption, the company should focus on strengthening its structures by implementing modern solutions.
Eveneum has developed an integrated supply chain management system – ESSA, the functionality of which is to be additionally enriched with blockchain technology. What does this mean in practice?
Blockchain technology has long been used in the advanced structures of the financial industry. The well known virtual currency BitCoin is based on blockchain. With regard to the supply chain, it allows to follow the entire process from start to finish, without omitting the smallest details and events during implementation. The data stored in the system allows to track the lot of the order with accuracy every minute. What is important – data saved in the system is uneditable. Nobody introduces them manually or anyone can modify them. Thanks to this blockchain increases the chance to detect and counteract irregularities resulting from disturbances in the supply chain. Some of the areas that Eveneum is currently evaluating are in food sector, for the quality of food and certificates tracking, and the dual use goods. Dual use goods are products and technologies normally used for civilian purposes but which may have military applications. In this case governments want to control and monitor flow of those goods.
Blockchain is also the security of data of participants in the process. The data is encrypted, thanks to which no unauthorized person has access to them and is not able to identify the participants.
Such a solution not only protects the interests of the company, but also increases the quality of services provided, and thus, increases the competitive advantage of the company.
Do you want to learn more about the ESSA [Eveneum Strategic Sourcing Application]? We will be happy to provide you with all the answers and we will guide the process of implementing the system increasing the safety and competitiveness of your company.