Blockchain Technology Helping Packagers Improve the Supply Chain

Blockchain systems are a Distributed Ledger Technology (DLT) that has slowly gained traction in recent years. DLT encourages real-time tracking of information, global partnerships, and increased transparency of transaction records.

Organizations can use blockchain technology to centralize their supply chain network and improve collaborative efforts. The emergence of DLT software has led to a paradigm shift in data management systems.  

How Blockchain Technology Works

Blockchain technology functions as an electronic public ledger based on a peer-to-peer (P2P) network. The information recorded on the platform cannot be edited at a later date, ensuring the integrity of the data available. Implementing DLT to activities like clearing and forwarding can greatly streamline the processes involved. All records are time-stamped and linked to previous entries, making them easily verifiable when conducting an audit.

Blockchain Technology in Business

A DLT platform can enhance the potential capacity of an existing supply chain. Digitizing shipping and packaging data, for instance, allows faster access to relevant information. Real-time tracking of international cargo improves the effectiveness of storage and delivery activities.

According to experts on essay writing service EssayWritingLand, blockchain networks first came to light with the emergence of cryptocurrencies. The possibilities held by DLT systems have since encouraged its spread across numerous business activities.

If implemented effectively, blockchain technology can save companies millions of dollars by improving time management and communication aspects. Electronically tracking packages from point A to B, sharing records with different departments, and quickly retrieving relevant data are just some of the opportunities available with DLT platforms. The flexibility of blockchain systems allows networks to be customized according to specific needs and activities.

The integration of blockchain technology in business is a work in progress. There are still a few bugs and kinks to solve before the platform can reach its full potential. As mentioned by SuperiorPapers in its research, protecting DLT networks against hackers, for example, is a crucial issue when considering system security. Developers are also concerned with scaling up blockchain networks to incorporate larger industries.

Trust and Reliability

The primary attraction to blockchain technology is its high levels of reliability and trustworthiness. Immutable records ensure that any changes can be immediately identified by anyone with network access. Once uploaded, the information in a blockchain can only be appended by a user. Previous data can never be deleted or reworked entirely.

According to Dissertation-Service.org, a blockchain platform puts collaborating groups on an equal footing in terms of access to relevant information. Manufacturers can track the final destination of their products, while sellers or distributers can ensure the goods received are from an original source.

With both ends of the supply chain being independently monitored, incidents of theft, counterfeit goods and fraud drastically reduce. Live updates also significantly improve the tracking capabilities of both sides (sender and recipient).

Experts on bestessays.com.au mention that there are different levels of privacy available with DLT. An organization’s particular needs will determine the most suitable option for their operations. Companies dealing with a large number of manufacturers and distributors, for example, can use an open ledger to share information (ensuring everyone has access to the data).

A company working with two or three partners can use a permissioned network, where the information provided is only available to authorized personnel.  

Blockchain Technology and the Packaging Industry

The packaging industry arguably sits in the middle of transport and delivery activities in business. Packagers are charged with receiving products, packing them appropriately and then moving them on to a final destination. Monitoring activities in packaging and handling of products involves two sides – the receiving and delivery end.

Using blockchain technology and IoT to track the progress of cargo in real-time allows packagers to secure the delivery of their goods. A DLT system also prevents any confusion when it comes to the accuracy of accounts. Numbers and figures cannot suddenly change in the middle of a transaction without setting off immediate alarms.  

DLT allows manufacturers, packagers and retailers to use a common pool of knowledge for their activities. In simple terms, a distributed ledger makes sure that everyone is on the same page. A collective database removes any redundant activities, improving payment and reconciliation processes.  

Blockchain platforms can also improve the financial liquidity of packaging companies by speeding up the confirmation and validation of deliveries. Packagers and retailers, for instance, can include a financial partner in their transaction records. Once all parties confirm their satisfaction with a delivery, an invoice would be automatically released and paid.

The driving force behind blockchain technology is the existence of unique IDs in the form of barcodes, RFID and QR codes. Electronic signatures have made it easier for different groups to track packages in real-time and confirm their authenticity. The use of a DLT platform enables users to track a single item back to its original source in a matter of seconds.

Conclusion

The adoption of blockchain technology varies from country to country. Its use in different industries also depends on various factors, like the general standards and regulations practiced by that sector.

Author Bio:

Thomas Lanigan has work experience for four years as a marketing specialist with a digital media agency. He’s an expert in SEO, social media and PPC. He’s also a professional academic writer and works with an online assignment service as a senior content writer. He’s currently writing a book on the role of blockchain in the manufacturing industry.