Digitalizing Supply Chains: The Confluence of Blockchain, Smart Contracts, and IoT Technologies

Smart contracts are the automated programs which are placed in the block chain to accomplish certain processes. Smart contracts are based on codes written for the conditions of agreement. When two parties want to execute smart contracts, they can initiate the automatic execution by meeting certain preconditions without the assistance of a third party. Smart contracts prevent unauthorized changes and unlawful alteration in the conditions of agreements. Better information exchange and information traceability are required among the various entities participating in the supply chain process. During any issues like a natural calamity or some unexpected change, quick information sharing can make the supply chain process robust. Blockchain technology has the potential to improve the supply chain by decentralizing the availability of information among the companies participating in it. Supply chain management has yet to gain traction with the introduction of blockchain technology. Various data analytics strategies can help firms estimate demand and better manage their inventories. However, for reliable supply projections, more information at various levels of the supply chain is required.