Question

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

13 May 2026
Answer :
Word Count : 609
Blockchain technology plays a significant role in Supply Chain Management (SCM) by improving transparency, traceability, security, and efficiency in global retail operations. In retail supply chains, products move through multiple stages such as manufacturers, suppliers, warehouses, distributors, transporters, and retailers. Managing such a complex network becomes difficult because of lack of visibility, fraud, delays, counterfeit products, and inaccurate records. Blockchain technology helps in solving these issues through a decentralized and secure digital ledger system. Blockchain is a distributed database in which information is stored in blocks connected in chronological order. Each transaction is verified by network participants and cannot be changed easily once recorded. This feature increases trust among all members of the supply chain. In retail SCM, every transaction such as procurement, shipment, inventory movement, delivery status, and payment can be recorded on blockchain platforms. One of the major roles of blockchain in SCM is enhancing transparency. Traditional retail supply chains often suffer from poor communication and hidden information between stakeholders. Blockchain allows all authorized parties to access real-time information about products and transactions. Retailers can monitor product movement from the source to the final customer. This shared visibility reduces information asymmetry and improves coordination among supply chain partners. Blockchain also enhances traceability in global retail operations. Traceability means tracking the origin and journey of products throughout the supply chain. With blockchain, every product
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