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All in a timely manner is one of

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All the product that we encounter on a day to day
basis is the result of supply chain; the process of raw goods or materials to a
product purchased by the consumers. The process of supply chain allows companies
who are involved in the process to all influence the eventually finished
product. Along the way, a product makes stops along the chain on its way to a
finished product. Whether that stop is at the beginning as a simple raw material
or further down the chain on the shelves of stores waiting to be purchased. These
are just a few of the stops a product makes along the supply chain. However,
most recently there has been problems associated with supply chain as global
products begin coming into the mix. Global trade has benefitted economies all
around the world, but with problems such as cyberattacks, theft, and exposure
of certain information, certain systems in place are not doing the proper job.
This is where blockchain technology comes in. It is said to be a revolutionary
way of keeping track of inventory, protecting secure information, and auditing
among other things.

           

 

Taking a closer look at supply chain we see the many
benefits of the process but the negatives associated with it as well. With so
many firms potentially having a part in the process of a good, it is easy to
see how something could go wrong. Just one little miscommunication from one
firm to another can cause the whole process to be scrapped and started over
from scratch. Leading to extra costs, materials and time added to the
completion of the product. When a product needs to be completed in a timely
manner it is evident how this could be problematic for the consumer, but as
well the firms if late charges and fines are applied. The completion of
products in a timely manner is one of the most important parts of the supply
chain process. The timely aspect of the process could be even more of a threat
when the industry of global supply chain comes into effect. The other problem
with global supply chain is the many complicated regulations associated with
it. These international regulations have costed companies millions in tied-up
inventory and overhead costs. With increasing the supply chain across Asia,
United states, and Europe, companies have been forced to introduce more
advanced systems of tracking product as it makes its way down the chain. These
more advanced systems are put into place to limit lag among firms in different
countries and allow for these firms to communicate better with one another.
This all leads to an easier supply chain process and positive end result. The
firms participating in the supply chain have objectives of their own as well. Firms
in the supply chain want to make sure that merchandise and products are being
distributed properly in terms of the right quantities, locations and in a
timely matter. These three things are important to the firms in order to
satisfy customers, minimize costs, improve standardization and remaining
competitive. All firms in the process must simply do their part in a timely and
organized manner.

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Blockchain technology is seen as the next biggest
technology behind bitcoin. It is a newly created technology used primarily for
keeping track of transactions of goods between those participating in the
supply chain. Essentially is was created with five things in mind:
Transparency, scalability, security, real-time transactions, and innovation.
These are all issues the supply chain faces all the time. Blockchain looks to
tackle these issues like no other technology. Being transparent is important
within a supply chain process. Blockchain can help with that. Having the
ability to better document processes within the supply chain is key to
effectiveness in attaining a positive result. Being transparent with firms
during the process makes all parties involved more comfortable with the
process. Blockchain technology makes scalability easier as well. Unlike before
where information would be stored on one central server, blockchain technology
introduced a way of storing information on different internet nodes. Therefore,
making it “infinitely scalable” (Pan, Xin, & Xu 2016). Through being able
to store information on internet nodes rather than a central server, this
decreases the risk of cyber-attacks and heightens security as well. Along with
scalability, and security, blockchain technology helps with real-time
transactions in decreasing processing time. With decreasing processing times,
this in turn decreases dollars held in the supply chain. The quicker this
capital can be in and out of the supply chain, the quicker this same capital
can be used in another supply chain and so on. The fifth issue blockchain deals
with is innovation. And the allowance of continuing innovation. This innovation
allows those with certain conditions access to certain information. Blockchain
gives those who use it a competitive advantage over others due to its
improvement in those five areas. Those firms with it would have a competitive
advantage. In terms of safety and being able to keep track of its supply chain
process more easily and in greater depth. The benefits of introducing
blockchain technology into your supply chain network greatly out way the
negatives.

            The
problems and challenges associated with blockchain technology are greatly
outweighed by the positives. However, one would be naïve to not consider some
of the potential challenges such as costs and design errors. According to the
International Financial Law review, blockchain is linked to troubled times
ahead and warns of potential errors in the design, and even the opportunity for
malicious behavior (Price, 2016).  With
every new and innovative technology, there will always be challenges it must
face and questions it must answer. So far, this blockchain technology has been
up to the task and has shown that it is everything it says it is. Bitcoin wouldn’t
had adopted the technology if it wasn’t the real deal. To this date there has
not been any issues with its design. It has helped bitcoin a tremendous amount
with its servers, protecting information, and making things roll as smooth as
possible. These could all be potential positives and shortcomings of whether
you as a company choose to adopt the blockchain technology or not. As mentioned
earlier in the analysis the positives of the blockchain technology outweigh the
few negatives with it. If I was a consultant acting on behalf of a company I
would recommend adopting the technology would be more beneficial than to not
adopt it. The technology just gives you such an advantage over other firms who
would choose not to. Essentially a competitive advantage.

            In
conclusion, the supply chain is a step by step process in the evolution of a
product to its finished form. All firms in the supply chain have a part to do
in order for the product to be finished in an effective and timely manner. Some
issues the supply chain can potentially face such as lag of information and
global regulations can potentially have a negative affect in the process of
goods in the supply chain. The revolutionary technology blockchain looks to
minimize all potential errors in the supply chain. It was created with things
in mind like improving transparency, scalability, and security. It is evident
that if a company were to adopt blockchain technology that it would greatly
benefit in doing so. A company would have a competitive advantage in using blockchain
as its main technology, as blockchain offers solutions to issues which current
technologies don’t. 

 

 

 

 

 

 

References

 

Price, Edward. (2016). Regulatory Divergence Could
Hamper Blockchain: International   Financial
Law             Review, 1. Retrieved from https://library.macewan.ca/library-      search/detailed-view/ofs/118882941?query=blockchain+costs#fulltext_html
 

 

           

 

 

 

 

 

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