The Procurement Glossary » Blockchain in Supply Chain

Blockchain in Supply Chain

Technology & Systems

Definition

The use of distributed-ledger technology to record supply-chain transactions in a shared, tamper-evident way.

Explanation

Blockchain can create a trusted, shared record of provenance, custody and payments across trading partners — useful for traceability, authenticity and automated (smart-contract) settlement. Adoption is still emerging and depends on partners sharing one ledger.

Example

A blockchain records each hand-off of a shipment so buyers can verify the product's origin end to end.

Related terms

• Supply Chain Mapping — Documenting the suppliers, sites and flows in a supply chain, including lower tiers, to reveal dependencies and risk.
• Traceability — The ability to track a product's journey and components through the supply chain from origin to delivery.
• Ethical Sourcing — Sourcing goods and services in a way that respects human rights, fair labour and responsible practices throughout the supply chain.
• Audit Trail — A complete, time-stamped record of the steps and approvals in a transaction, showing who did what and when.

Frequently Asked Questions

What is Blockchain in Supply Chain?

The use of distributed-ledger technology to record supply-chain transactions in a shared, tamper-evident way. Blockchain can create a trusted, shared record of provenance, custody and payments across trading partners — useful for traceability, authenticity and automated (smart-contract) settlement. Adoption is still emerging and depends on partners sharing one ledger.

Can you give an example of Blockchain in Supply Chain?

A blockchain records each hand-off of a shipment so buyers can verify the product's origin end to end.

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