Traditional supply chain systems are centralized, unstandardized, and there is minimal and cumbersome data sharing among stakeholders. A retailer may not know where to obtain goods from suppliers. A supplier does not know where raw materials were acquired from the manufacturer. In certain cases, the citation used by their raw material suppliers is not even known to manufacturers. Almost every party uses their own system, even if there was an objection about who gets to regulate the data although they were brought under a single management system. Most specifically, any party involved in the system can change, modify or corrupt this data. By instituting a chain of transactions, Blockchain overcomes this problem. There will be a comprehensive list of transactions prior to the origin of an item for every virtual or physical good.
Check out: Top Blockchain Solutions Companies
Stock inventory management can cost millions of retailers both in money and every year wasted hours. Mismanagement combined with consistent seasonal overproduction on the brand side can lead to impact on bottom-line. Such advantages extend to the supply chains of brands. Blockchain can instantly track raw material shipments from source to factory, then track the final product to the consumer through its entire distribution chain, thereby creating greater transparency with regard to the origins of clothing and accessories not only for brands but also for consumers when it is connected to other IoT devices.
Blockchain applications will allow designers to record every step of the design process, providing unalterable creation evidence in the event of a dispute. Brand owners can utilize blockchain technology to track sales and royalty payments–similar to a system that the music industry is already developing to track royalties using the blockchain platform of IBM.
Blockchain-based supply chains can transform many businesses ' shape in the years ahead predictably. The reason this technology has not yet been widely adopted is a lack of technical awareness among both consumers and companies. Second, very few existing standards define how to enact a blockchain network.