Question

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

28 Mar 2026
Answer :
Word Count : 529
Blockchain technology is transforming supply chain management (SCM) in retail by introducing a decentralized, secure, and immutable system for recording transactions. In global retail operations, where multiple stakeholders such as suppliers, manufacturers, distributors, and retailers interact across geographical boundaries, maintaining transparency and traceability has traditionally been a complex challenge. Blockchain addresses these issues by creating a shared digital ledger that records every transaction in a transparent and tamper-proof manner. One of the primary roles of blockchain in SCM is enhancing transparency. In traditional supply chains, information is often siloed within individual organizations, leading to information asymmetry and limited visibility. Blockchain enables all authorized participants to access the same real-time data, ensuring that every transaction, from raw material procurement to final product delivery, is visible across the network. This shared visibility reduces the chances of fraud, errors, and miscommunication, thereby improving trust among supply chain partners. For retailers, this means better coordination with suppliers and more accurate demand forecasting, which ultimately improves inventory management and customer satisfaction. Traceability is another critical aspect where blockchain proves highly valuable. Each product can be assigned a unique digital identity
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