When Disaster Strikes Supply Chains, Blockchain Can Help
Supply chains are no stranger to crises, with natural disasters like floods and hurricanes disrupting operations from time to time. One technological development that is proving useful to supply chains in such situations is blockchain, the same technology behind digital currencies like bitcoin.
Blockchain is a digital ledger that records transactions in an unalterable and chronological record. It makes use of autonomous computer networks to verify updates to the ledger on an ongoing basis.
The same technology can help supply chains to authenticate third-party transactions globally while in the process of recovering from natural disasters or other unforeseen situations. This record gives shippers and their logistics providers access to the status of supply chain transactions and allows supply chain partners to take steps to ensure efficiency in the face of a crisis. By offering global operations a streamlined way of understanding how weather events have affected routing, they can adapt their contingency plans accordingly.
No Controlling Entity
Blockchain also boasts the advantage of not being controlled by a single entity, thereby removing any concerns about accountability and disclosure. When natural disasters strike, blockchain can make sure that competing players cooperate with one another in sharing resources and assets rather than acting capitalistically. This transparency eliminates price gouging and rewards those who operate ethically.
The implementation of this fast and fair exchange allows businesses affected by problems like storms and flooding to get help from their partners, such as cargo, equipment, warehouse space and talent, and they can also get payments faster with the help of digital currencies to generate liquidity.
In addition, users can attach digital tokens to products so they can assess the price and market risk throughout the supply chain and gain a clear view of the value they’ve invested in a good’s delivery, shipping and production at any point throughout the supply chain. This transparency can come in handy when goods are stranded or need to be rerouted.
This blog post was based off of an article from Inbound Logistics. View the original here.