Question

Analyse the role of Blockchain technology in SCM. How does it enhance transparency and traceability in global retail operations?

27 Feb 2026
Answer :
Word Count : 534
Blockchain technology has emerged as a transformative tool in supply chain management (SCM), especially in the context of retail operations, where efficiency, transparency, and trust are critical. In a retail supply chain, products often move through multiple intermediaries including manufacturers, wholesalers, distributors, and retailers before reaching the end consumer. This multi-tiered structure can create challenges in tracking product origins, ensuring authenticity, and maintaining real-time visibility of inventory. Blockchain, with its decentralized and immutable ledger system, addresses these challenges effectively by providing a secure and transparent record of every transaction along the supply chain. In retail, one of the primary benefits of blockchain is enhanced traceability. Every time a product changes hands—from raw material sourcing to manufacturing, shipping, and finally retail sale—a blockchain entry is created that records the time, location, and parties involved. These records are permanent and cannot be altered, allowing retailers and consumers to trace the entire journey of a product. For example, in the case of perishable goods like fruits or dairy, blockchain enables quick identification of the source of contamination in case of a food safety issue. This not only minimizes losses but
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