As we have been warning , supply chains are notoriously difficult and complex to keep track of , particularly as an organisation grows , and getting a supply chain wrong can have serious consequences , such as fines , or regulatory penalties for using child labour for example . However , blockchain and the Internet of Things could significantly improve the procedure . Blockchain is generally a cryptographically secure record of transactions , and has recently been used to set up and enforce smart contracts such as managing billing processes . Traditionally this has been done with audits, a resource intensive process if carried out correctly. If you add to this always - on traceability the Internet of Things and have every item in your supply chain as part of blockchain , you will have a transparent , robust , and virtually bullet - proof supply chain says Tom Raftery in Enterprise Irregulars .
As we have been warning , supply chains are notoriously difficult and complex to keep track of , particularly as an organisation grows , and getting a supply chain wrong can have serious consequences , such as fines , or regulatory penalties for using child labour for example . However , blockchain and the Internet of Things could significantly improve the procedure . Blockchain is generally a cryptographically secure record of transactions , and has recently been used to set up and enforce smart contracts such as managing billing processes . If you add to this always - on traceability the Internet of Things and have every item in your supply chain as part of blockchain , you will have a transparent , robust , and virtually bullet - proof supply chain says Tom Raftery in Enterprise Irregulars .