When most people hear the word “blockchain,” they immediately associate it with a rising trend in bitcoin and other cryptocurrency mining. While this direct association is right on point, blockchain technology, even in its young state, has already proved to be beneficial in countless numbers of business-use cases.
Here are four distinct areas of business operations that blockchain technology can improve today and in the future.
More Efficient Supply Chain Management
Blockchain has proven to be a game changer for supply chain management, specifically for product development teams in the manufacturing industry. Due to the transparency that blockchain provides, blockchain transactions enable management teams to have a complete documented history of a product, from its original inception to the transferring of goods to warehouses.
When it comes to inventory management, blockchain implementation is the perfect solution to providing real-time reporting of inventory availability and shipping statuses. By using a distributed ledger for accuracy and timely database entry, blockchain technology takes much of the human error away from manual record keeping and document updates.
Better Quality Assurance and Auditing
Having an accurate record of transactions is imperative when developing and executing quality assurance protocols. With the development of blockchain technology, businesses are now able to identify problems in the manufacturing and distribution process and track where they are originating with unparalleled efficiency. The permanent records that blockchain establishes make financial audits, for both internal systems and external partnerships, much more accurate and less time-consuming.
Blockchain technology brings with it new accounting automation solutions never before seen in any industry. There are now countless numbers of available and in-development applications that give accounting teams the ability to automate their day-to-day processes while maintaining strict compliance and regulatory requirements.
Intelligent Contract Execution
One of the challenges that many sales operations teams face today is the ability to manage multiple contract term expiration dates, signage requirements and auto-renewals. Rather than drafting contracts in a standard Word document or PDF format, blockchain technology allows these agreements to be digitized and managed through a series of coding protocols.
The blockchain enables these smart contracts to have a list of defined procedures that automatically enforce specific time-sensitive obligations. As different events in the agreements are triggered, the blockchain will then execute each predefined stage of the contract, which is then trackable by anyone in the peer-to-peer network.
Faster Business Transactions With Lower Fees
Most operation departments want more efficient, safer ways to process payments and manage other business transactions. Because of the automation and transactional transparency that it provides, blockchain technology eliminates the need for an intermediary when processing payments.
When a business accepts credit card payments, they typically pay a transactional fee of between 2 and 5 percent. Blockchain payment processing systems and their associated costs are rarely above 1 percent, and in some cases have no charge at all. Also, the new technology presents significant improvements to cross-border payment processing. With blockchain speed, cost and security, it makes receiving payments nearly trouble-free so that operation teams can focus on other essential parts of the business.
The future of FinTech and blockchain technology is continuously shaping itself to change the way modern businesses operate. By implementing new blockchain tools and services, companies can start to reap the benefits that new age business automation and smart technology will bring to their organizations.