Relationship and Impact of Block Chain Technology and Supply Chain Management on Inventory Management

Abstract

Block chain technology (BCT) has the potential to combine all supply chain activities in a short period of time. It has the capability to enhance the decision power of demand forecasting and management, resulting in more realistic supply and inventory management. Additionally, block chain technology may allow the sharing and use of all design-related documents. Block chain technology has the advantage to significantly enhance supply chains by allowing quicker and more cost-effective delivery of items, increasing product traceability, improving coordination among participants and facilitating access to funding. BCT allows all participants involved in a particular supply chain to have access to the same information, which has the potential to reduce communication or data transfer mistakes. As a result, less hours may be spent confirming data and more time on providing products and services, which can either improve quality or lower costs, or both. Supply chain management highlights the management of materials and its kinds as well as facts through the whole chain from producers to distributors, suppliers, retailers, and end consumers. BCT helps reducing the time to reach these entities in a very short span of time, which ultimately slashes costs and strengthen the relationship among them.