Supply chain management is absolutely vital for navigating through times of heightened uncertainty in global markets. Presently, COVID-19 (Coronavirus) outbreak is proving just how valuable, accurate, real-time data is for supply chains and public safety.
Information bottlenecks can cause confusion and disorganization in dealing with this crisis within and across borders, elevating the world’s need for new and improved data transfer methods.
The last place a nation, company, or consumer wants to be is over-reliant on factors completely out of their control. Putting effort into crisis management preparation before economic downturns take place is key.
Does your company have a strong supply chain management strategy, with emergency production process alternatives?
How fast a company responds to changes in the environment is known as supply chain agility. An agile supply chain strategy taps into alternative courses of action quickly and confidently. This mitigates the damages brought on by economic downturns through decisive action.
Unfortunately, a major blocker of true supply chain agility is the dependence on centralized data sources for information. Blockchain is demonstrating its tremendous value – as it minimizes the uncertainty and distrust between parties found in legacy data transfer networks.
Blockchain provides unprecedented transparency and verifiability of data, making the technology novel for alleviating information bottlenecks brought on by global market slowdowns.
Blockchain solutions: Optimizing real-time data.
Governments and companies must know precisely where the material components of products come from to keep an eye on supply flow and in turn make critical decisions.
China is utilizing private blockchains to track locations with confirmed cases of the virus to route medical supplies, healthcare workers, and raise flags to prevent the spread of disease.
Another aspect of blockchain tech that China has the opportunity to take advantage of, is regaining trust among its citizens and trade partners across the world. Blockchain gives the ability to verify the information in a dataset, removing the doubt that has historically plagued centralized data sources.
Companies in the western hemisphere are heavily dependent on materials and goods from China. Prescription medicine, for example, could see prices surge if the extent of the outbreak continues to slow down trade. This is a very haunting possibility, with severe implications. Having accurate, up-to-date information about supply delays can help distributors course correct and avoid losses before its too late. Patients’ lives are directly affected by these developments.
Tracking new supply chain solutions is just as important as tracking the supply itself. Future preparation calls for action now.
IBM Blockchain is a prominent, emerging solution for supply chain management (SCM). Taking a step towards a blockchain partnership at the enterprise-level is a serious investment that is worth seeking consultation about before further consideration.
For companies looking to improve supply chain management strategies for long term success, here are some factors to reflect upon.
- Are you committed to staying up to date on supply chain management industry trends?
- Does your business actively pursue competitive advantages through technological advancement?
- Have you considered blockchain as a means to enhance your supply chain management strategy?
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