Blockchain stock management
Although the blockchain was not initially designed to help warehouses improve and optimize inventory management, technology is suitable for these two tasks. The blockchain allows warehouses, manufacturers, suppliers and production sites, distribution centers and retail partners to connect to each other thanks to a permanent recording of each transaction that takes place. All recordings are then stored and accessible to all those on the network.
With such transparency, manufacturers are better able to manage the origins of products, traceability, potential reminders and perishable products. Manufacturers can really see demand at consumers in real time, which allows them to predict demand with precision and plan manufacturing and replenishment.
Before the blockchain, inventory management was based on a reactive model, where the replenishments were ordered once the inventory exhausted, or a predictive model which believes when the inventory would be exhausted.
With the blockchain, the management of warehouse stocks can provide for demand with precision and thus always have the right type and the right amount of stock required to meet the expected demand. Technology optimizes income and profitability, while reducing the risk of loss of sales.
