The ability to accurately trace a product and its components is one of the main use cases for organizations. Using Blockchain technology, you are able to capitalize on the transparency and trust element of Blockahin technology, to accurately and easily track and trace a product.
Traceability covers the following journey:
- A product is produced on a farm or a factory.
- The item is then transported to a distributor. The item is then organized and transported to retailers where they are sold to consumers.
- An accurate audit trail is created for each item/ batch that can be stored on a blockchain ledger.
- Consumers can be confident in the accuracy of the detail provided due to the immutability of the blockchain.
- Information moving between each phase is sped up as update transactions can occur in near real-time.
There are a number of use case benefits of building Blockchain technology for traceability in some of the following areas:
- Increased traceability of material supply chain to ensure corporate standards are met.
- Lower losses from counterfeit/grey market trading.
- Improved visibility and compliance over outsourced contract manufacturing
- Reduced paperwork and administrative costs.
Traceability benefits and outcomes
There are many outcomes from a transparent and real time supply chain such as:
- Visibility across the entire Supply Chain – from raw material to finished goods
- The ability to prevent counterfeit goods, by having a greater view of the entire supply chain
- Track & Trace of products is simple and quick
- Easy tracking ensures swift payments up and down the supply chain
- Recall identification & Management is simplified and sped up
- Customs, Certification & Compliance is made easier and quicker
- Supplier trust is enhanced and developed
- History visibility helps to make better decision for the future products
- Deeper supplier comparisons allow a more efficient procurement process and better pricing
- Enhance predictability of the arrival of the exact products
- Delivery progress is easier to monitor and react to
- Improves order progress can be shared with customer and suppliers
- Reduce operational costs to sharing data and multiple copies of incorrect data