You’ve probably heard it before: you need blockchain to trace your supply chain. It’s the be-all-and-end-all solution. You adopt it, and your problems will be fixed.

Unfortunately, it’s not that easy. Often, blockchain technology is useless if companies don’t adopt it in the right way, with the right platform. In addition, some companies are simply too small or too niche for blockchain to become applicable. Instead, their problems can be solved with a more traditional solution.

So, does this mean blockchain is useless in all supply chains? No. But before you implement it, you must first consider whether it is, in fact, right for you.

Not every use case is a good use case

While we’re bombarded with ‘you need blockchain’, there are many cases in which blockchain simply isn’t the best solution.

That’s why at Blockhead we offer ‘blockchain-enabled’ solutions. This means you get the choice of blockchain, but you’re not constrained to it – and the software is still effective without it.

Blockchain technology can, of course, be useful for many supply chains. It provides transparency, permanence and visibility for large and small companies that otherwise lack it. It’s far more secure than a traditional database, which is vital when dealing with sensitive information.

Is blockchain right for your company?

Of course, this brings us to the question: what differentiates between a company that needs blockchain and one that has current effective processes or would benefit more from more traditional solutions?

It’s necessary to ask yourself three questions:

  • Have you tried other solutions, and they haven’t worked?
  • Do you need the information you’re dealing with to be secure, traceable and easily auditable?
  • Do you need an unquestionable record of transactions and recording? For example, this is applicable to companies that often have anomalies or mismeasurements in data, and need to pinpoint where, exactly, things are going wrong.

Blockchain might not work for you if:

  • Your problems can be solved with more traditional solutions, or aren’t related to auditing and traceability.
  • Blockchain is ‘too big’ of a solution for your problem – i.e. your company is too small to afford or even require implementation.

While the cost of blockchain doesn’t have to be huge – we ensure easy implementation of our platform STAMP with affordable and modest prices – it can simply be too much for smaller companies who are just starting out. This is where our ‘blockchain-enabled’ solutions excel. When the company expands, it can then implement blockchain, if required, without difficulty.

At Blockhead, we’ve created STAMP Supply – a blockchain-enabled platform designed to trace supply chains beginning to end, no matter the size or commodity. To find out more, download our free eBook here.