The process of organizing, coordinating, and managing the movement of goods, data, and services from the supplier to the client is known as supply chain management, or SCM. A variety of parties with varying goals, interests, and expectations are involved in supply chain management (SCM), including suppliers, manufacturers, distributors, retailers, and consumers. SCM also has to deal with a number of difficulties, including vulnerability, inefficiency, complexity, and ambiguity.
Blockchain technology has the potential to revolutionize supply chain management (SCM) by facilitating quicker, less expensive, and more transparent transactions. It can also improve security, trust, and cooperation amongst supply chain participants. Blockchain is a distributed ledger system that operates decentralized, recording and verifying transactions without the use of a central authority or middleman. Key components for enhancing SCM include traceability, sophisticated applications, and intelligent contracts, all of which blockchain may support.
This article will examine how supply chain partners may meet their objectives and please customers by using blockchain to provide intelligent contracts, sophisticated applications, and traceability in SCM.
Intelligent Contracts
Smart contracts, sometimes referred to as intelligent contracts, are self-executing contracts that can automate workflows and commercial operations on the blockchain. The terms and circumstances of the transactions, as well as the activities and results that ought to take place when particular criteria are satisfied, can all be specified by intelligent contracts. On the blockchain, intelligent contracts can communicate with one another as well as with data and other devices to form a network of interdependent and connected entities.
Intelligent contracts can help SCM by:
— Reducing transaction costs and time: Through the elimination of middlemen and the simplification of the verification and validation procedures, intelligent contracts can lower transaction costs and times. Peer-to-peer payments and transactions are also made possible by intelligent contracts, which also lower the…
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