In this digital era where a fast-paced global economy has evolved into a complex web of intricate operations that demand visibility, security, and efficiency. This complicated network of supply chains offers opportunities but at the same time, it brings challenges for the business.
Traditional supply chain systems often face efficiencies, limited transparency, and errors. By leveraging blockchain and artificial intelligence supply chain management systems can be revolutionized. They have the potential to bring improvements and overcome current challenges such as efficiency, traceability, transparency, and overall performance.
Blockchain enhancing supply chain management
The original use case of blockchain technology was to underpin cryptocurrencies such as Bitcoin. It offers a centralized and immutable ledger system that can be used in various industries and ensures every transaction is recorded securely and with complete transparency.
Traceability- every transaction is recorded on the blockchain hand insurance that all the stakeholders have access to the real-time data. This increases the trust between the parties and reduces the risk of fraud and error.
Resist copied information or products- Blockchain has a great ability to verify product authenticity which can be a game changer for industries facing counterfeit challenges.
Enhanced data security- one of the key attractions of blockchain technology is its decentralization which highly resists hacking and ensures data remains untouched. Supply chain data contains sensitive information that has to be protected from breaches to ensure the confidentiality of critical data.
Smart contracts-self executive agreements or smart contracts can automate various supply chain processes such as quality control checks, delivery confirmations, reduce human errors, payments, etc.
AI upgrading the supply chain management
Quality control-By everything AI-driven image recognition and machine learning defects and quality issues in products can be detected effortlessly preventing poor quality products from entering the supply chain.
Inventory management- the continuous use of AI can monitor inventory levels and predict when machinery and equipment require maintenance and reorder products when needed.
Customer service- The field of customer service with AI chat words and virtual assistant is improving day by day enhancing customer experience by standing their demand and giving suggestions accordingly. Chats can also improve customers’ shopping experience with a quick response to their queries, easy tracking of shipments, and resolving issues.
Potential Challenges
Expensive- Implementing blockchain and AI technology for supply chain management can be costly and unaffordable for small and medium-sized businesses.
Data Privacy- While storing data on blockchain and AI businesses have to ensure the sensitive supply chain data is secured from unauthorized access.
Integration- Merging this technology with the existing supply chain system can be troublesome.
Conclusion
Blockchain and AI technology is ready to revolutionize the supply chain management system offering enhanced efficiency, transparency, and traceability. This seamless integration allows efficient data-driven decisions, responds swiftly to disruptions, and optimizes operations.
Durga Prasad Tripathi is the Founder of FutureFi