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 : 509
Blockchain technology has emerged as a transformative tool in supply chain management, particularly in the context of retail operations. At its core, blockchain is a decentralized digital ledger that records transactions in a secure, immutable, and time-stamped manner. In retail supply chains, this technology enables multiple stakeholders—including manufacturers, distributors, logistics providers, and retailers—to access the same verified data in real time, reducing reliance on intermediaries and minimizing errors or discrepancies in records. One of the primary advantages of blockchain in retail supply chains is enhanced transparency. Each transaction, movement of goods, or change in inventory is recorded as a block that cannot be altered retroactively. This ensures that all participants in the supply chain can track the journey of products from production to the point of sale. For example, a retailer can verify the origin of raw materials, confirm adherence to quality standards, and monitor compliance with ethical sourcing requirements. This level of transparency helps build consumer trust, as customers increasingly demand information about the sustainability and authenticity of the products they purchase. Traceability is another critical aspect that blockchain strengthens in global retail operations. With products often moving across multiple countries and through various intermediaries, traditional supply chains face challenges in quickly identifying
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