In his new article in Inbound Logistics, Omnichain's Pratik Soni explains how Blockchain-as-a-Service platforms are driving adoption of distributed ledger technology in the supply chain.
Early blockchain adopters are looking to the distributed ledger technology to connect disparate supply chains, enabling transparency between what's happening downstream with consumers, upstream in production, and everywhere in between.
Adding more fuel to adoption is Blockchain-as-a-Service (BaaS), which gives businesses the ability to connect their supply chains through a simple internet browser. Using a subscription-based model, BaaS platforms streamline complicated and expensive implementations, which means faster return on investment.
BaaS platforms can integrate and log records from any accounting, inventory, or transportation management system, creating a permanent, decentralized ledger of all product movement and transactions, from source to shelf.
With real-time data flow and transparency throughout the supply chain, organizations can overcome many tough demand forecasting, replenishment, inventory allocation, and tracking and traceability challenges.
Many supply chains involve a complicated mix of suppliers, production sites, warehouses, third-party logistics providers, and online and brick-and-mortar retailers. With each using its own systems and databases, it's difficult to get everyone on the same page.
GIVING MANUFACTURING VISIBILITY
Through BaaS, manufacturing gains visibility into what consumers are buying. It is possible to then find an equilibrium between supply and demand—producing just the right amount of product without excess, carrying costs, or the need for secondary markets.
Add in geo-specific information on where demand is coming from, and organizations can optimize inventory allocation—sending products to the channels and regions where they are wanted most—and fulfillment—finding the closest distribution centers and transportation providers to fulfill orders.