Excess inventory, poor service levels, low product turnover, failure to keep track of stock, lack of visibility, and experiencing difficulties when identifying demand patterns. In other words, all inventory management issues, and all challenges that reduce the efficiency of businesses. Since inventory is arguably one of the most crucial parts of any business, it should be managed correctly, effectively, and precisely.
That is, however, easier said than done, and some businesses lack an approach that interconnects every single party into one overarching system. A system that is not only easily accessible by every participant of the supply chain, but also a system that is unified, decentralised, immutable, and records every transaction done by every user. In other words, a radical and state-of-the-art solution that is gaining ground today. Simply put, a solution that is disruptive in almost every single industry, a system called Blockchain.
Blockchain essentially is a gamechanger for both supply chain management and inventory management due to the simple fact that it gives better security, enhanced transparency, and immutability that is currently severely lacking in inventory management systems. To clarify; imagine a system where every single transaction across the chain, every invoice, every time goods changed hands, every transport document, every inventory level from every supplier, and even every contract, are all intertwined and interlinked in one single system and accessible by everyone that has the rights to do so. That is not only revolutionary, that is the endgame.
Having said that, momentarily it is still unclear whether or not the technology is going to be universally adopted, and there are not enough successful practical use cases of a blockchain- enabled inventory management system. There are still tons of challenges and hurdles to overcome before it is going to achieve global acceptance among supply chain and inventory management professionals. Therefore, it can be stated that block- chain is something that is hanging by a thin thread and the opinions are quite divisive. That being said, no matter who is right, one thing is quite clear; it is a revolutionary phenomenon that has been the talk of the town in recent years.
Being caught in the middle of all those views is often very difficult and makes forming a clear picture of the possibilities of the technology oftentimes strenuous. Understandably, the essence of the technology can, therefore, remain blurry. What’s more, I think that blockchain might not be the leading solution for inventory management’s current issues momentarily. Put differently, I think that as long as there are no successful practical use cases, looking for another workaround or solution could prove to be more useful. Essentially, this means that as of today a blockchain-enabled inventory management system solely sounds good on paper, and should, thus, only be used when businesses can no longer operate without it.
Now you’re probably already wondering how blockchain could possibly be integrated into your very own business. This is simply not the best way to approach this matter. At DPA Professionals we have a tendency to ask ourselves; how can blockchain technology contribute to the interests of your business. Have I enthused you about the endless possibilities of this revolutionary technology and would you like to keep up to date of the latest technologies in this field? Then please contact us!