Question

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

01 Mar 2026
Answer :
Word Count : 612
Blockchain technology has emerged as a transformative innovation in Supply Chain Management (SCM), especially in global retail operations where coordination among manufacturers, suppliers, distributors, logistics providers, and retailers is highly complex. In retail supply chains, maintaining accurate records, ensuring product authenticity, and managing information flow across international boundaries are major challenges. Blockchain technology addresses these issues by creating a decentralized, secure, and transparent digital ledger that records every transaction across the supply chain network. In traditional supply chains, information is stored in centralized databases controlled by individual organizations. This often results in data silos, lack of coordination, delayed information sharing, and increased chances of fraud or manipulation. Blockchain eliminates dependency on a single authority by allowing all authorized participants to access shared and synchronized records. Every transaction entered into the blockchain is verified through consensus mechanisms and permanently recorded, making it nearly impossible to alter or delete data without network approval. Transparency is significantly enhanced through blockchain technology because all stakeholders can view real-time information related to product movement, ownership transfer, inventory levels, and shipment status. In global retail operations, products often pass through multiple countries and intermediaries before reaching consumers. Blockchain enables retailers to monitor
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