Trust Building with Blockchain
Trust; an abstract word can be philosophically described as a kind of reliance on other people, based on certain attitude. Going through the pages of history, it can be firmly said that, trust is amongst the few principles upon which society has been built upon. To talk about trade, or exchange of goods in simpler terms, the role of trust cannot be ignored. With modernization and global integration, there is an increasing vulnerability in the global trade chain. With hundreds of people involved in the supply chain, right from the formation of the product, to its delivery, trust is an essential glue holding the trade process together. The modern Supply Chain being, high in data and short in trust, entrepreneurs constantly need to reinvent the trust-building process with their partners.
They need a system in which, all the records can be stored and accessed by all so that there is no place for fraud and mistrust. Here, comes the role of Distributed Ledger.
Blockchain, as we know it commonly, creates a system of permanent records, of every transaction that takes place between two traders that creates a chain of trust for both parties. All the records have time stamped and connected to the previous records as well. This system has the potential to revolutionize trade as we know it, in areas of visuality, optimization, and demand.
With exchange taking place across states, a country as well as the nation, there are several doubts that a trader may have. Did the supplier send the full order? Has the order been dispatched? How long is it going to take to be delivered?
Blockchains can reveal where an asset is at any point of time, who is handling it at that at any point in time as well as its state. With the help of these data, organizations can thoroughly predict an assets arrival. Both sides of the supply chain, as well as help in efficient inventory management, cost reductions, waste management and at the same time maintaining a standard quality.
If any particular hiccups can be quoted, that often arises in the trading process in terms of visibility, it’s the transportation of products. With the huge amount of paperwork involved, that goes through many hands, errors are inevitable. Blockchain helps in digitization of this paperwork, which can be accessed by both parties, reducing the percentage of error to almost zero. At any point in time, if a document needs to be shared with the multiple numbers of people, Blockchain comes in handy. Apart from visibility, traceability is another advantage that blockchain provides to its users. Knowing exactly where an asset has been, and being able to track its position through the entire process of exchange, makes the buyer trust the trading process.
Now, coming to the process of optimization of trade, with trusting the distributed ledger technique, both buyers and sellers are able to make an informed decision. The audit created with the help of blockchain creates a wider supply chain of trust. This helps build a reputation for companies, which can be evaluated by other customers when they are buying from that company.
Forecasting the demand of customers becomes easier with the help of blockchain. With the synchronous access of data from producers to retailers, no one is left in the dark. There is little place for fraud and it helps traders trust one another.
With people being dependant on the internet more than ever before, even for their basic needs, blockchain is a revolution in this new age digital supply chain.