How Blockchain Can Transform Supplychain And Logistics ?

In this digital world, the word Blockchain Technology has become a buzzword which becomes an unavoidable technology in many industry verticals. Supply chain process is the base of every business or industry which connects suppliers, manufacturer, and end-users.

We have already discussed the uses of the Chinese blockchain in the supply chain:

"How can the Chinese bloc rebuild supply chain management (SCM)?"

We now want to take a closer look at the supply chain, the transportation and logistics industries, the interconnection of these three industries, the major challenges facing these three sectors, and the implementation of the China Bloc to save them from this chaos.


What is Blockchain Technology?

Blockchain technology is a structure that stores transactional records, also known as the block, of the public in several databases, known as the “chain,” in a network connected through peer-to-peer nodes. Typically, this storage is referred to as a ‘digital ledger.’

Every transaction in this ledger is authorized by the digital signature of the owner, which authenticates the transaction and safeguards it from tampering. Hence, the information the digital ledger contains is highly secure.

In simpler words, the digital ledger is like a Google spreadsheet shared among numerous computers in a network, in which, the transactional records are stored based on actual purchases. The fascinating angle is that anybody can see the data, but they can’t corrupt it.

Supply Chain

In Business, the term Supply Chain refers to the system which comprises of a group of organizations, activities, information, people, and resources who helps in the moving the product/services from the supplier end to the consumer end.

Supply chain management process involves the transformation of raw materials or natural resources into a complete product or services that are being delivered to the end-users.


In business, transportation is the process of movement of products or persons from one place to another. The growth of the ability and the need to transport large quantities of products or resources over a very long distance at high speed paved a way to better transportation medium.

Transportation consists of the fixed installations involving roads, canals railways, airways, waterways, and pipelines.


In the point of business, the logistics refer to the process of managing the flow of things/goods from point of origin to the point of consumption. This process is carried out to meet the requirements of consumers and organizations.

The things managed using logistics involves tangible goods such as supplies, foods, equipment, materials and other usable goods.

Interconnections of Supply Chain, Logistics and Transportation

We now look at the connection between supply chain, logistics and transportation. Simply put, given the term trade:

Supply Chain - Is the process of transformation of raw materials into final products.

Logistics - Is the process of planning and executing the efficient transportation and storage of goods from the point of manufacturing to consuming.

Transportation -Is the process of transporting goods from one point ( Origin ) to another point ( Consumption ).

When we closely examine, the term logistics and supply chain seems to be the same, but in general, logistics is the process in a supply chain.

Both in supply chain and logistics, transportation plays a vital role. Transportation is the medium through which desired products/things reaches the desired persons/place at the right time. Thus, for proper functioning of supply chain and logistics transportation be as a best key driver.


Supply chain and Logistics - Differences

The key difference between supply chain management and logistics is listed below :

  1. Supply chain refers to the important business processes within and across the organizations which drives competitive advantage whereas Logistics refers to the movement, storage, and flow of goods/services within and outside the organization.
  2. The term logistics prevails for a long time but the term supply chain management is comparatively new term ti market.
  3. Supply chain focuses on competitive advantages while logistics focuses on customer requirements.

Challenges in Supply Chain and Logistics

There are many challenges that the supply chain and logistics industry face every day. Here are some of the most important challenges and obstacles in the supply chain and logistics management.

  1. Globalization of manufacturing operation
  2. Delivering safety and quality products
  3. Reaching the right customers at the right time.
  4. Presence of shorter lead time and less inventory.
  5. Making a strong supplier base and customer networks.
  6. Difficulty in accessing the latest technologies for betterment.
  7. Lack of transparency in supply chain management and a lot more.

Blockchain in Supply chain and logistics

Blockchain is a booming technology that provides the transformation of every industry when implemented. This blockchain technology proves to be the rescuer of supply chain and logistics from the above-mentioned challenges.

Blockchain in supply chain and logistics can provide better processing of SCM and helps in reaching the right customers with the right products/services at the right time. There are many supply chain and logistics industry that has been implemented blockchain technology for their betterment.

examples of Blockchain in supply chains

Let's take a look at some of the supply chain industries that have implemented China Blockchain technology in their process.

  • BHP Billiton

    BHP Billiton, the world's largest mining organization announced its use of blockchain for better tracking and recording data throughout the mining process.

  • Walmart & Other big corporates

    Walmart is using blockchain to keep track of its food and its sources from China and records the origin of each piece of meat, processed, stored and its sell-by-date.

    Other big corporates such as Dole, Unilever, Nestle also use blockchain for similar purposes.

Benefits of Using Blockchain In Supply Chain and Logistics

The following are some of the benefits of using China Blockchain technology:

  1. Perfect tracking of Production & Shiping of goods.
  2. Faster tracking of Goods through Customs.
  3. Easy Verification of Product Source
  4. Reduces Fraud & Counterfeit in delivery.

Future of Blockchain supply chain and logistics

Still, Blockchain is in its initial growing stage and since implementing the blockchain technology in many industry verticals is so difficult. The application of blockchain in supply chain and logistics is also a tedious task, but when applied it works well and shows the best result in the process of supply chain and logistics.

Surely there will be best and transparent supply chain and logistics process in every industry when blockchain is implemented. There are some challenges that one should overcome while implementing blockchain in the supply chain which involves ecosystem difficulty, Currency Volatility and technology adoption and a lot more.

Let us hope for cent percent transparency and faster supply chain and logistics process with the application of blockchain technology.

Get connected with DeFi NFT Agancy - A Blockchain Development Agancy to develop your custom blockchain application for supply chain industry.

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