I have spent the better part of a decade as an active participant in the supply chain fulfilling different role. I have been a in the ordering, receiving, and producing roles in the supply chain. Participating in all these different roles of the supply chain has made me empathize with others that are fulfilling the different roles in the supply chain. It has also given me a global view of the whole process and an appreciation for when it runs efficiently.
As our supply chains cross boarders, the less control we have of the process. If you get a poor-quality part or late delivery from another country it can be exceedingly difficult to resolve the issues. The rise of counterfeit parts has been an ongoing problem also. All of these issues add to the complexity and inefficiency that can plague the supply chain.
There are several companies out there that are trying to solve the issues and inefficiency in the supply chain through distributed ledger technology(DLT). Several different DLTs are being
leveraged like blockchain and Ethereum. The idea is that through the better traceability in both the financials and the provenance from the cradle to grave in the process the supply chain will become more efficient and effective. Adding in the ability for machines to certify through DLT that the part they made is the part you ordered and received will be a huge step in reducing counterfeit products in the supply chain. All these changes together will improve the revenue for all parties involved. The insurance companies will benefit through the traceability, the cost of the parts should decrease due to the elimination of counterfeit parts in the market, and the final price to the customer should decrease because of the improved process and cost savings that can be passed on.
Large companies are implementing the blockchain in their own supply chains to optimize their processes. There are also a few different startups that are competing in this space also. It will be interesting to see who rises to the top to improve the supply chain process. Comment below and tell me who you think will be the best in the space.