Blockchain technology is becoming popular as an effective process management tool for both simplified and complex processes. The multifunctional capacity of the technology is establishing it as an essential tool in areas with significant data exchange requirements.
As a decentralized system, the unlimited storage capacity of blockchain and the absence of a central point of failure gives it an edge over other existing systems that are employed for similar purposes.
Blockchain is a transparent and immutable technology that makes it easy for transactions and data transfer processes to be easily traceable and auditable. This eliminates the need to trust human elements or other forms of technology that can be influenced by the powers of a central control system.
What Are The Bottlenecks In Supply Chain Management?
Supply chain management (SCM) is a cumbersome process that in most cases involves the exchange of huge data and transactions. For holding companies whose major interest revolves around overseeing the operations of those companies with which they are invested, this is usually an enormous task which involves a lot of overhead infrastructure.
Imagine a holding company whose stakes cut across hundreds of portfolios. The manpower and resources needed to manage such a process will surely be plentiful. Besides this, there is an increased margin for error when the individual processes are too numerous. Hence, the administrative pressure alone from such systems is usually abundant.
Another factor that works against the existing systems include the unreliability of the human element. Cases of error, corruption and other forms of malpractices are constant problems that have been difficult to eliminate within the investment ecosystem. We have seen cases where malpractices are concealed over long periods of time, or where order books are manipulated from the backend of exchanges. These are pain points that have so far been difficult to overcome.
How is Blockchain Fixing SCM Problems?
However, the advent of blockchain is introducing new ways of doing things that are proving to be highly effective. The Volum platform which offers a decentralized ecosystem for portfolio management of companies takes holding to a totally new level.
The project brings together carefully selected companies unto the same blockchain platform under a harmonized token. This process addresses all the deficiencies that have been mentioned above by providing a transparent administrative and transaction process. The immutable nature of blockchain makes it impossible to sustain any form of dishonest practices, while making the auditing process very straightforward.