Blockchain Technology Enhances Security and Communication in Supply Chain Management

The rise in the need for transparency in the supply chain operation is increasing demand for improved security of transactions. The growth of the e-commerce industry has become an important factor that is bolstering the demand for the blockchain in the supply chain market. Also, in maritime trade, blockchain technology is being used for asset tracking applications. It helps to reduce the revenue loss, occurred by maritime fraud. Increasing implementation of automation technology in supply chain management offers wide ranges of opportunities to the blockchain in supply chain market.

Recently, Authenticiti, a blockchain-enabled supply chain platform, announced recently that it has secured additional funding from technology investors. In its press statement, Meg Paulus, Partner at HOLT Ventures, the venture capital arm of HOLT CAT, said, "There are enormous amounts of redundancy and cross-checking in supply chains today.  Authenticiti's platform comes at a time when there is an opportunity to reset supply chain systems that have relied on outdated processes".

And Michael Downing, Founding Partner at Gravity Ranch Venture Fund explained, “We invested in Authenticiti because a blockchain-enabled supply chain will securely automate and streamline key operations, as it synchronizes data efficiently to save millions in operating costs, and this perfectly aligns with our investment model that fuels change."

Many companies are adopting the blockchain technology considering the benefits regarding data security. Considering the rising needs, companies are seen receiving funding or investing heavily in new blockchain capabilities. For example, Volkswagen Group announced last year the partnership with IBM Corporation for tracking of mineral supply chains with blockchain technology.

Companies leveraging blockchain for supply chain are seen performing organic and inorganic growth strategies such as product launches, approvals, patents, partnership & collaborations, and mergers & acquisitions, etc. According to research analysts, these strategic activities have paved the way for these companies to expand their business and customer base globally.

Accenture Plc., Amazon Web Services, Auxesis Group, Huawei Technologies Co., Ltd., and IBM Corporation are some of the major companies that are currently active in the blockchain in supply chain market.

However, industry experts opine that the lack of awareness regarding the technology and unavailability of skilled human resource are the major factors that will hamper the growth of blockchain in supply chain.