Question

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

07 Apr 2026
Answer :
Word Count : 503
Blockchain technology has emerged as a transformative tool in supply chain management (SCM), particularly in the context of global retail operations where complexity, scale, and the need for trust are significant. At its core, blockchain is a decentralized, distributed ledger that records transactions in a secure, immutable, and transparent manner. Each transaction or data entry is stored in a “block” and linked chronologically to form a “chain,” making it resistant to tampering and fraud. This fundamental structure plays a crucial role in enhancing transparency and traceability across supply chains. In global retail supply chains, multiple stakeholders are involved, including suppliers, manufacturers, logistics providers, distributors, and retailers. Traditionally, these entities maintain separate records, leading to information silos, inconsistencies, and lack of trust. Blockchain addresses this issue by providing a single, shared version of truth accessible to all authorized participants. Every transaction, such as the movement of goods, changes in ownership, or quality checks, is recorded in real-time and can be verified by all parties. This significantly reduces disputes, delays, and inefficiencies arising from mismatched data. Transparency is greatly enhanced through blockchain because all participants can view the same data without relying on intermediaries. For instance, retailers can
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