Countries continue to fight COVID 19 as it infects more than 1.5 million people worldwide. How long will this COVID-19 crisis last? It is difficult to collect reliable data to predict when it will end.
The number of deaths from coronaviruses continues to increase considerably in many countries and has had an impact on the economy and the daily life of the community. The coronavirus has hit industries hardest like grocery, transportation, hospitality and the supply chain. Organizations around the world are facing major changes in their supply chains with the advent of COVID-19.
The pandemic has clearly highlighted the vulnerabilities of supply chains. Organizations around the world have shown varying degrees of sensitivity. This revealed a broken connection necessary to track, locate, authenticate, finance and clear medical products, materials, etc. through commercial channels, securely, verifiable and efficiently.
Imagine the supply chain as a supply network. Groups of manufacturing facilities are linked along the way by transportation routes with numerous storage locations. Due to the demands of social distance, manufacturers who rely on labor-intensive processes that allow people to work closely have been disrupted.
Like transportation systems, if truck drivers get sick, they run the risk of being disrupted. It is difficult to accurately predict where the disruptions are most likely to be experienced, but different supply chains have been disrupted and severely affected.
Blockchain and how it can help the supply chain?
Although the most popular use of blockchain is found in cryptocurrency, the fact is that blockchain – essentially a digital transaction log that is duplicated and distributed across the entire blockchain computer network.
Each block in the chain includes a certain number of transactions, and each time a new transaction takes place on the blockchain, a record of this transaction is added to each participant’s general ledger. Since each transaction is spread across multiple nodes as multiple copies of the general ledger, this is highly transparent.
Blockchain provides certain things necessary for the reliability and integrity of a supply chain. .More documents cannot be deleted in the blockchain, which is an added advantage. Since blockchain allows the transfer of funds anywhere in the world, it is very convenient for a globalized supply chain.
Due to the difficulty and lack of transparency of our existing supply chains, block chains could transform the supply chain and the logistics sector.
Blockchain certainly has the ability to increase the efficiency and transparency of supply chains and has a positive impact on everything from warehousing to distribution to payment.
Covid-19 and the blockchain
The World Economic Forum (WEF) released a report on April 6 highlighting how digitalization and blockchain can help survive disruptions in the supply chain, especially in crises like covid-19. Amid the supply chain disruptions caused by coronaviruses, several experts echoed the need for greater visibility across the chain. In my opinion, blockchain is the best solution for visibility.
Blockchain networks could theoretically help push products faster in the current Covid-19 crisis, as alternative suppliers could be found more quickly. With a better understanding of suppliers and product inventory during an outage, many customers can recognize where suppliers are sending their products to new sources and redirect shipments to where they are most needed.
Decentralized products focused on blockchains can be a solution for several business transformations. To take the business to the next level, we collaborate with industry experts, influencers and designed platforms. COVID-19 highlighted numerous organizational weaknesses and obsolete trade flows. The current downturn offers the possibility of a potential reset button for many organizations.