How Blockchain Technology Can Help Manage Supply Chains During COVID-19 Pandemic

Initially thought of as a benign common flu limited to the Wuhan district in China, Coronavirus has now become a deadly pandemic, beating its predecessors like Sars virus and Nipa virus in terms of contagiousness. According to worldmeters.info, the total number of Coronavirus cases has crossed the 1 million mark and the number of infected individuals is growing at a breakneck speed.

It is not just a health emergency anymore. With quarantine imposed in most of the affected countries, all the industrial sectors have taken a hit. Economists are predicting that the dent made in the global economy could cause rampant recession worldwide.

One of the sectors that are really struggling amid this pandemic is the supply chain sector. With factories being shut down and labourers being laid off, production has come to a halt – which has made procurement impossible.

The supply chain problem

Even those industries that are open and are producing goods are not making sales because people do not trust the authenticity of the products. Many industries in China that are still functioning have been unable to make sales for the sole reason that people have lost trust in them.

Already, there has been a global uproar regarding the penetration of fake products and medical equipment into the market due to increased demand. Since the demand for hand sanitizers went sky-high, many fake hand sanitizers have been discovered. There are documented videos where chemists are trying to pass off rosewater as hand sanitizer. This is where Blockchain can play a major role.

The solution with Blockchain

One of the major reasons why people aren’t buying certain products from certain manufacturers is because they are not sure if the product is authentic. Also, if it is something like a hand sanitizer, they want to make sure that it was produced under strictly monitored conditions as it is a matter of life and death. So being able to track where things are and where they came from to ensure they are genuine is vital.

Blockchain can be of great help in this scenario since it furnishes an open, distributed record of transactions. This allows people to see the records for their personal satisfaction. Blockchain also makes sure that even though people can see the records, they are not allowed to alter or delete them.

Blockchain strengthens the spine of the supply chain by integrating the elements of transparency and traceability into the process. This transforms the supply chain into a digital chain with permanently visible blocks. This boosts the trade business by eliminating doubt and fostering trust between the concerned parties in a transaction.

Abhishek Agarwal, Senior Vice President, Judge Group

In China, Blockchain technology is being implemented to trace the sources of the public announcement which is helping in removing any false information that has found its way into the public domain.

In addition to that, Blockchain also puts the option of smart contracts on the table. This feature will automatically transfer funds once the specified set of conditions is met. Besides the benefits, Blockchain has also played a major role in minimising the inflation so far.

It makes certain that people get authentic products and not their fake copies and it helps a great deal in distributing the costs in a fair and transparent manner. This benefit of Blockchain may become even more significant once the private companies start venturing into the public domain and have to be reimbursed by the taxpayers’ money.

Blockchain technology, especially when combined with AI (Artificial Intelligence) and 3D Printing can really play a substantial role in managing the supply chain management during these tough times. Investing in the Blockchain technology can make the supply chains more efficient and resilient against any unforeseen calamity in the future. We should take lessons from this pandemic and prepare ourselves better for the future.