Understanding the supply chain efficiency in e-commerce using the blockchain technology

Abstract

E-commerce has been revolutionary in it significantly improved customer experiences; however, the integration of Blockchain technologies are transformative in the sense that they are revealing critical weaknesses in global supply chains, in the areas of transparency, traceability, inventory management and fraud prevention. Fragmented data and operational inefficiencies are commonplace in traditional systems. This course is a promising solution for the need to procure an independent, unchangeable ledger through which not only will be increasingly visible, but also more secure, and important - more efficient. This tech is a more secure way to digitize the transport of goods, reducing complexity, speeding up processes with self-executing contracts and improving transparency. Thanks to Blockchain, data integrity is preserved, fraud risk is significantly reduced and demand forecasting is supported, this results in no overstocking, as well as no stockouts. This paper examines how blockchain can be integrated in e-commerce supply chain industry, and how it can contribute to operational efficiency, costing and compliance to transparency and sustainability requirements. In the future, using blockchain with IoT (Internet of Things) and AI (artificial intelligence) will narrow down the time for data collection and predictive analysis and will definitely lead to increased efficiency in every step of supply chain processing. Realizing the full potential to replace existing e-commerce supply chain with more scalable, interoperable, and regulatory-compliant alternatives, thus, solving all problems for this new digital age.