Blockchain in Retail
Retailers usually face major issues regarding maintaining the supply chain, fairtrade practice and quality of products. The solution to such problems is to increase the visibility of products right from production to sale.
A blockchain-enabled system can build trust among retail supply chain stakeholders as it makes the entire system transparent. Moreover, it enables easy management of autonomous transactions, chain-of-custody information and supply chain data.
Let’s understand the persisting challenges in the retail industry and look at how blockchain resolves the issues.
What are the challenges in the retail industry?
Poor inventory management
Retailers generally store either on their systems or a centralized server. Storing data in personal computers make it inaccessible to other stakeholders and storing it on centralized servers makes it vulnerable to hacks. Hence, traditional retail systems require an innovative solution to manage inventory processes efficiently.
Lack of authenticity
The production and sale of counterfeit products is a common phenomenon in the retail industry. The sale of such pirated products increases in the market due to insufficient information about the provenance and history of the products. Lack of authenticity generates trust issues among the customers and stakeholders.
Regulatory compliance and complex contracts
In a retail process, various lengthy contracts such as sales agreements and bills are involved. Agreeing on a legal contract is a long process and requires extra cautiousness.
Blockchain technology excels in handling such issues by recording the data immutably.
Let’s understand in detail how Blockchain technology works to resolve all the challenges mentioned above.
How does blockchain make retail operations transparent?
Various stakeholders involved in a retail supply chain network are:
- Manufacturer
- Packager
- Logistics service provider
- Wholesaler/Retailer
- Consumer
The steps involved in a Blockchain supply chain network are:
Step 1: Manufacturer enters the production details to the blockchain network
The manufacturer will add details related to raw materials, manufacturing date, the origin of the product, manufacturing process and quality standards.
Step 2: Packager enters the packaging details to the blockchain
A packager is responsible for adding the details related to carton box type, packaging material used, packaging date, etc.
Step 3: Logistics adds the carrier and transport details to the blockchain
Logistics providers add the transportation details like the number of products to be delivered, type of products, fragile/non-fragile details, etc.
Step 4: Wholesalers/retailers add the sales details to the blockchain
Sales information, including the number of bought and sold products, selling price, discount offered, MRP, etc., are entered by the wholesaler/retailer on the blockchain.
Step 5: Customers can trackback the complete supply chain
Blockchain records every movement of the products on the supply chain. It enables the users to trace back the entire history of the product and check its authenticity. Thus, blockchain makes the supply chain transparent and entails trust among the consumers.
Conclusion
A blockchain-based retail supply chain resolves all the prevailing challenges in the retail industry. It allows traceability of product provenance and ensures the best quality of the goods. The increased security and transparency brought by blockchain technology into the supply chain establish trust among the consumers.
The best way to implement a blockchain-based supply chain network into your business would be to hire an expert Blockchain development company and get your project done from them.
