ClickPost-logo-white
ClickPost-logo-blue
  • Product
    • Multi Carrier Shipping
    • Integrated Tracking
    • NDR Management
    • Returns Management
    • COD Reconciliation
  • Integrations
    • Courier Integrations
    • WMS Integrations
    • Storefront integrations
  • Resources
    • Shopify Apps
    • Glossary
    • Blog
    • Resources
  • Request Demo
  • Company
    • About us
    • Careers
    • API Docs
    • Contact us
  • Product
    • Multi Carrier Shipping
    • Integrated Tracking
    • NDR Management
    • Returns Management
    • COD Reconciliation
  • Integrations
    • Courier Integrations
    • WMS Integrations
    • Storefront integrations
  • Resources
    • Shopify Apps
    • Glossary
    • Blog
    • Resources
  • Request Demo
  • Company
    • About us
    • Careers
    • API Docs
    • Contact us
Facebook Instagram LinkedIn Twitter Youtube
Product
  • Testing 1
    • Sub Nav 1
    • Sub Nav 2
  • Testing 2
  • Testing 3
Integration
  • Testing 1
    • Sub Nav 1
    • Sub Nav 2
  • Testing 2
  • Testing 3
Blog
  • Testing 1
    • Sub Nav 1
    • Sub Nav 2
  • Testing 2
  • Testing 3
Request Demo
  • Testing 1
    • Sub Nav 1
    • Sub Nav 2
  • Testing 2
  • Testing 3
  • Home / Blog / eCommerce

How Blockchain is Improving Supply Chain Efficiency

18 Apr, 2022 | 3 Min Read
How Blockchain is Improving Supply Chain Efficiency

Table of Contents

1. What is Blockchain?

You may have heard the term tossed around in the news or by friends and colleagues, but what does it actually mean? In short, Blockchain is a digital ledger where all transactions are recorded with transparency. This makes it an ideal system for tracking and verifying any kind of information – from logistics data to sale records. As such, many experts believe that Blockchain has the potential to revolutionize ecommerce as we know it. Want to learn more? Keep reading!

 

2. What are the advantages of Blockchain?

  • Decentralization

  • Heightened privacy and security for data

  • Transparent transactions

  • Reduction of paperwork and administration costs

  • Facilitates more ethical practices

3. How Blockchain is Improving Supply Chain Efficiency?

Ecommerce businesses rely on logistics expertise and efficiency to get their products to their customers. Considering complex transactions and data exchange, Blockchain technology is a definite way to improve your supply chain efficiency. Here is a look at how Blockchain, with its multiple advantages and tech advancements, is improving supply chain efficiency for ecommerce businesses.

3.1) Advanced Security

E-commerce supply chain operations depend on critical data exchange between 3PL partners, online platforms, and consumers. Therefore, critical and accurate data exchange requires advanced security protocols, which is what Blockchain offers. The security of your data is amplified several folds with the help of Blockchain, which can improve your supply chain efficiency considerably. 

With high encryption, information documented in a blockchain cannot be tampered with, thereby avoiding fraudulent or unwarranted practices by logistics partners. Moreover, blockchain technology provides an unassailable record-keeping system for all manner of transactions that are cryptographically verified.

3.2) Accurate Data Exchange

Accurate data exchange is the lifeblood to improving your supply chain efficiency. To enhance the quality of data and avoid the risk of errors, it's important that all ecommerce business partners are working with a consistent process. Supply chain efficiency can be hugely enhanced with the replication of successful processes day in and day out as a result of accurate data exchange.

Blockchain enables businesses to have an accurate data standard for maintaining a consistent process throughout logistics operations. Therefore, through Blockchain, a well-defined process will help keep things running smoothly so you can rely on your numbers every day!

3.3) Ethical Practices

Blockchain is a game-changer in facilitating supply chain efficiency and data management by warranting ethical practices. It creates an auditable trail that can verify the movements of materials and goods to and fro and what route they take as they travel through the e-commerce logistics system. Moreover, Blockchain makes it much simpler to develop ethical practices in sourcing materials and commodities. This technology can curb unethical and unwarranted practices with a complete validation-based system overseeing the logistics process.

3.4) Enhanced Visibility in the Logistic Process

A Blockchain is a powerful tool that improves communication and collaboration for all partners involved. Enhanced traceability, transparency & accuracy is vital logistics for eliminating duplicate orders and preventing accounts payable grievances. Accordingly, Blockchain with its secure channels prevents a lot of unverified activities by logistics partners. Consequently, enhancing visibility in the logistics process is how Blockchain helps your e-commerce platform improve supply chain efficiency.

3.5) Cost-Effective Infrastructure

Building a cost-effective infrastructure is paramount in improving supply chain efficiency. The potential for cost savings is tremendous when it comes to blockchain technology. Blockchain removes the need for traditional workflow processes that involve storing documents and managing them. Since Blockchain is completely digitized, all transactions can be done digitally, which eliminates additional expenses related to storage and labor.

4) Examples of Blockchain in E-commerce.

4.1) Walmart

Walmart has been piloting a number of programs based on Blockchain. This e-commerce giant is using Blockchain to track the origins and journey of products in America as well as improve transparency for a more effective supply chain.

4.2) FedEx

With the help of Blockchain, FedEx has managed to improve supply chain efficiency for customers and vendors alike. The company can now track packages more easily than ever before while also staying up-to-date with industry standards in terms of shipping practices that will ultimately benefit all parties involved!

4.3) Maersk

Maersk has been utilizing Blockchain to deliver solutions for a rapidly growing food company called Highland foods. The food company's wide and dense supply net created shipping delays and routing priority shipments challenges. With Blockchain enabling accurate data exchange and a consistent process across all logistics partners, Maersk utilized it to create proactive and real-time solutions.

5. What are the constraints in adopting Blockchain for your e-commerce supply chain efficiency?

5.1) Limited Knowledge

Since Blockchain is a new phenomenon, logistics partners and e-commerce businesses might have limited knowledge about the field, which would make it a strenuous integration process.

5.2) Trust Factor

Blockchain is one of the hottest topics today as it promises a lot of perks like decentralization, transparency, etc. People are still getting acclimated to it like every new tech innovation, building trust as they become more aware of the blockchain process. However, it is going to take some time before the trust factor could build among the consumers and professionals.

5.3) Lack of Required Skill

Blockchain is an upcoming medium in trade, so human resources may be marred with the lack of required skills to execute e-commerce operations. Education and training are gradually evolving and improving in the field of Blockchain. However, considering the advantages of Blockchain, logistics firms and online platforms will look to adapt to improving their supply chain efficiency quickly. 

6. Final Takeaways

Blockchain technology is still in its early days, but it has already shown tremendous promise in the e-commerce industry for improving supply chain efficiency. Many online platforms have already succeeded in implementing Blockchain into their supply chain. 

While there are certain risks associated with its adoption, the advantages seem to far outweigh them for most businesses with high transparency, security, decentralization, and cost-effective workflows. So, if you are exploring Blockchain, utilize this article to understand how Blockchain improves supply chain efficiency in logistics services.

Share this page

  • WhatsApp
  • Facebook
  • Twitter
  • LinkedIn

Most Popular

  • Top 10 eCommerce Courier Services Provider Companies in India [Cheapest and Fastest]
    29 Mar, 2022 | 14 Min Read
  • Top 10 Logistics Companies in India for eCommerce Shipping
    29 Mar, 2022 | 14 Min Read
  • Top 10 Cash On Delivery Courier Service Provider Companies in India
    02 Apr, 2022 | 7 Min Read
  • List of Top 10 Shipping or Courier Aggregator for eCommerce Businesses
    19 Apr, 2022 | 14 Min Read
  • Top 15 eCommerce Companies in India [Reviews, Services & Features]
    02 Apr, 2022 | 7 Min Read
  • Top 10 Courier Services Companies in United Arab Emirates (UAE)
    02 Apr, 2022 | 12 Min Read
  • Best 10 Logistics Startups In India for eCommerce Companies
    31 Mar, 2022 | 9 Min Read
  • Top 10 eCommerce Aggregators in India for eCommerce Shipping
    02 Apr, 2022 | 7 Min Read
  • Best 10 Courier Companies in Dubai for eCommerce
    02 Apr, 2022 | 5 Min Read
  • Top 10 Logistics Companies in Saudi Arabia for eCommerce [Cheapest & Fastest]
    02 Apr, 2022 | 12 Min Read

Popular Tags

  • Shipping Software
  • eCommerce Shipping
  • Shopify
  • eCommerce
  • Glossary
  • Customer Experience
  • Logistics Companies
  • eCommerce Logistics
  • Shipping Aggregator
  • Shipping middle-east
  • Hyperlocal Delivery
  • Shipping API
  • Shipping Cost
  • Shipment Tracking
  • Couriers India
  • Ecommerce Returns
  • Shippo
  • Shipping Carriers US
  • Global Couriers
  • Warehouse Management
  • Narvar
  • AfterShip
  • Shipping Canada

Related Articles

  • What is the Impact of eCommerce Growth on the Logistics Sector
    18 Apr, 2022 | 6 Min Read
  • How to Keep Your Online Business Going Post-Pandemic/ COVID-19
    18 Apr, 2022 | 5 Min Read
  • What is an eCommerce Fulfillment Center
    20 Apr, 2022 | 6 Min Read
  • How to Ensure Proper Packaging In For Every Order
    20 Apr, 2022 | 4 Min Read
  • Best eCommerce Shipping Strategy for Your Online Start-up
    18 Apr, 2022 | 3 Min Read
  • Automated Case Picking in eCommerce
    18 Apr, 2022 | 4 Min Read
  • Everything You Need to Know About E-commerce Revenue Model
    18 Apr, 2022 | 3 Min Read
  • Understanding Proof of Delivery (P.O.D)- Complete Seller’s Guide
    19 Apr, 2022 | 3 Min Read
  • Most Important eCommerce Fulfilment Terminologies
    31 Mar, 2022 | 7 Min Read

Recent Posts

Shippo Shopify- [Complete Guide]

12 May, 2022 | 4 Min Read

Why Tracking International Shipments is Important for eCommerce Business

12 May, 2022 | 4 Min Read

What is order tracking in eCommerce, and How It Works

12 May, 2022 | 5 Min Read

Calculate Shipping Costs with the Aramex Shipping Calculator

12 May, 2022 | 5 Min Read

Blue Dart Shipping Calculator

12 May, 2022 | 5 Min Read

USPS Shipping Cost- [Complete Guide]

12 May, 2022 | 4 Min Read

All you need to know about the FedEx shipping cost

12 May, 2022 | 6 Min Read

How To Save On Shipping For Small Business

12 May, 2022 | 5 Min Read

AfterShip Pricing- [Complete Guide]

11 May, 2022 | 3 Min Read

Narvar Tracking -[Complete Guide]

11 May, 2022 | 3 Min Read
  • Shipping Policy
  • Blog

© 2022 Copyright ClickPost

TwitterLinkedInYouTube
Return to Top