Supply chains can be complicated.
Have you ever thought about what will happen if a producer uses a different design specification and a supplier get confused with two separate orders and tangles them up? Definitely, it will be a great mess, and all the goods on the supply chain need to be recalled. If it happens, it costs over a billion dollars to rectify the issue.
If a supply chain is not managed efficiently, the businesses might face several challenges to thrive. Several incidences show how an unsuccessfully managed supply chain can cost a lot. One such incident occurred with hoverboards on 10th May 2016.
Since several boards were catching fire, major retailers like Target and Amazon issued refunds and instructed customers to dispose of them. In fact, some cities and airlines banned hoverboards. However, the defective batteries inside the hoverboards were found to be responsible for the fire.
When you have an upgraded supply chain, you can track and trace your goods and recall them in case you need to check them again. When you have Smart Contracts leveraged with blockchain, you can make your supply chain highly secured and transparent. With Decentralised Supply Chain tool, you can also track exactly where and when your products changed hands. Thus, it prevents the scope of fraud and counterfeiting.