4 Ways to Eliminate Intermediaries with Blockchain in Supply Chain Management

Traditional SCM and asset tracking methods are increasingly viewed as outdated and inefficient. Blockchain, a distributed ledger technology, offers a secure and transparent way to record transactions. In the context of asset tracking and inventory management, blockchain eliminates the need for third-party logistics providers, inspectors, and auditors, leading to significant cost savings and efficiency gains. Here are four ways blockchain is transforming this sector:

1. Real-Time Asset Tracking Without Third-Parties

The Old Way
Traditionally, third-party logistics providers maintained centralized databases to track products in a supply chain. These centralized databases often caused delays and discrepancies in information sharing. New Way with Blockchain
Blockchain enables a decentralized system where each unit of an asset is tagged and its movements recorded in real-time. With no central authority required for verification, tracking has never been more accurate or transparent.

2. Simplified Authenticity Verification

The Old Way
High-value goods often require third-party agencies for authenticity verification, a process that is both time-consuming and costly.
New Way with Blockchain
Each item can be tagged with a unique digital identifier on the blockchain, allowing all stakeholders to verify an item’s provenance and authenticity independently. This eliminates the need for middlemen, making product verification simpler and increasing consumer trust.

3. Smart Contracts for Automated Reordering

The Old Way
Inventory Management Systems (IMS) require manual oversight for tasks like reordering.
New Way with Blockchain
Smart contracts on a blockchain can automate reordering when inventory levels fall below a pre-set threshold, optimizing stock levels and preventing stockouts.

4. Streamlined Quality Assurance

The Old Way
Third-party quality assurance agencies add time and cost to the supply chain by performing inspections and issuing compliance certificates.
New Way with Blockchain
Quality checks can be logged at each step of the production process and stored on the blockchain, eliminating the need for third-party verification and making the process quicker and more transparent.

What’s Next?

Blockchain is revolutionizing inventory management and asset tracking by reducing costs, increasing efficiency, and offering unprecedented transparency. As the technology gains traction, traditional methods are becoming obsolete. With GearChain, you can build a custom inventory app on your mobile phone in minutes, leveraging blockchain and AI to monitor your physical or human assets in real-time. Don’t get left behind — embrace the blockchain revolution today!