This article discusses the challenges faced by organizations in supply chain management and proposes blockchain technology as a solution. It also provides relevant research articles on the topic.
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Introduction The organization in question is facing various challenges regarding supply chain. Supply chainhasbecomecumbersomeinmanyindustries.Paymentsbetweensuppliersand manufacturers or between clients and vendors take days to be completed. Agreements for contracts demands the attention of bankers and lawyers each of which results to delay and additional costs. It has become difficult to track products. According to the fact sheet, ABC organizationisa majorsupplierof fertilizerinthe agriculturalsectorin Australia.The organization has been operating for more than 80 years. Since then, its supply chain has been ABC’s supply chain has been facing various issues. ABC Supply Chain Problem Analysis In analysis of the problems associated with ABC supply chain, ABC is a big organization with multitudinous customers at its service. At the same time, the distribution sector is not effective;thereislongdeliverytime;lastmiledeliveryisacommonissuewithinthe organization. This problem occur due to inefficiency of infrastructures which can support quick and cost effective delivery1. However, most consumers always require fast deliver and at the same time, they are not willing to pay high prices. It therefore follow that the organization must look for a way through which it can do fast delivery at an affordable cost. Additionally, the current supply chain at ABC involves very tedious processes such as the informationsystemcurrentlylinkedwithmonthlyreports.Theoutdatedhardwareand communication infrastructure, rescheduled deliveries among others. These issues can negatively affect the organization, hence they need urgent attention. ABC can solve these issues in various ways. Blockchain technology is the current innovation which can help the organization to 1Jabbari, Arman, and Philip Kaminsky. "Blockchain and Supply Chain Management." (2018).
manage most of the problems effectively. However, the issue concerning obsolete information system may not be addressed by the technology; it requires upgrade of the information system. The problem concerning monthly report and widespread spreadsheet can be solved well by blochchain technology. The following section shows solutions to the problems. Solution to the problems In the problem faced by ABC concerning long time delivery, adopting blockchain technology can be the best solution. The smooth flow of physical products at a lower cost is the requirement by the organization, the blockchain allow frictionless and error free logistics2. It at the same time reduces cost and enhances transparency. With all these features, blockchain is convincing that it is the best solution to the currently faced problem in the organization. For the issues regarding record keeping and wide spreadsheets, blockchain technology should be the best solution. Since blockchain is a distributed database where records of digital data can be held in a way that make them tamper free, it can be utilized by ABC for data storage3. It allow its users to add or inspect data but they cannot delete or change it in any way. Additionally, this technology is capable of managing any form of tracking process, agreement, or even exchange to mention a few4. At a glance, we have analyzed ABC’s value chain in this article, we have also suggested solutions to the problem. Blockchain has been proven to be the most effective solution for the problems. However, the solution can only be achieved if and only if ABC IT team take notice of the current blockchain technology trends and upgrade their information system. 2Shrier, David, Weige Wu, and Alex Pentland. "Blockchain & infrastructure (identity, data security)."Massachusetts Institute of Technology-Connection Science1, no. 3 (2016). 3Pilkington, Marc. "11 Blockchain technology: principles and applications."Research handbook on digital transformations225 (2016). 4Wampler, Jason, and Garrett Payer.Blockchain for High Performance Data Integrity and Provenance. No. DOE- INCA-17238. Innovative Networking and Communications Associates, Inc., Accident, MD, 2018.
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Jabbari, Arman, and Philip Kaminsky. "Blockchain and Supply Chain Management." (2018). Pilkington, Marc. "11 Blockchain technology: principles and applications."Research handbook on digital transformations225 (2016). Shrier, David, Weige Wu, and Alex Pentland. "Blockchain & infrastructure (identity, data security)."Massachusetts Institute of Technology-Connection Science1, no. 3 (2016). Wampler, Jason, and Garrett Payer.Blockchain for High Performance Data Integrity and Provenance. No. DOE-INCA-17238. Innovative Networking and Communications Associates, Inc., Accident, MD, 2018.