Importance of Blockchain technology for supply chain management

Abstract

Competitiveness of the supply chain requires the digital transformation of various processes at all levels of business. In this context, the risks in the logistics and other activities in the supply chain can be reduced or eliminated by introducing modern solutions Industry 4.0. One of them is blockchain technology, which represents a decentralized database. This technology is widely used in supply chains due to transparency, reliability, and security of information, efficient inventory control, etc. The aim of this paper is related to the understanding of the blockchain concept and its application in supply chains. By using blockchain technology could improve the quality of customer service, which represents a key factor in the competitive supply chain. The paper analyzes blockchain technology from aspects of improving the functioning of the supply chain in the field of reducing costs and increasing the level of customer service.