Question

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

28 May 2026
Answer :
Word Count : 613
Blockchain technology has emerged as a transformative innovation in Supply Chain Management (SCM), particularly in the retail sector where products move through multiple suppliers, manufacturers, logistics providers, warehouses, distributors, and retailers before reaching consumers. Traditional supply chains often suffer from poor visibility, fragmented information, delays in communication, fraud, and counterfeit products. Blockchain addresses these challenges by creating a decentralized, secure, and immutable digital ledger that records every transaction across the supply chain. Each participant has access to the same verified information, reducing dependency on a single authority and improving coordination among stakeholders. One of the most significant contributions of blockchain in SCM is enhanced transparency. Every transaction, such as procurement of raw materials, manufacturing, quality inspections, shipment, warehousing, and final delivery, is recorded in chronological order and cannot be altered without network consensus. This creates a single source of truth that is accessible to authorized participants. Retailers, suppliers, logistics companies, and even customers can view accurate and up-to-date information regarding the movement of goods. Greater transparency reduces disputes, improves trust among supply chain partners, and enables faster decision-making. Blockchain also greatly improves traceability, which is essential in global retail operations. Every product can be assigned a
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