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How inventory management can be improved with blockchain

Although blockchain technology wasn’t initially designed to help warehouses improve and optimize inventory management, the technology is adept at both of these tasks. Blockchain allows warehouses, manufacturers, suppliers, production sites, distribution centers and retail partners to connect to each other through a permanent record of every transaction that takes place. All the records are then stored and accessible to everyone within the network.

With such transparency, manufacturers are better able to manage product origins, traceability, potential recalls and perishable goods. Manufacturers can actually see consumer-level demand in real time, allowing them to forecast demand accurately and plan manufacturing and replenishment.

Traxalt, is a blockchain-based solution with a main objective of bringing closer this technology to the individual or corporate users by being a direct middleman. Traxalt provides a customizable blockchain platform which can be adapted depending on the needs of the company. It provides a secure data management platform, allowing for users to send encrypted information all over the world without worrying about hackers or information breached. Some of the applications of the Traxalt protocol can be customized into a platform that could perform massive scale global payments processing, management of digital or physical inventory, supply chain management, document time stamping, automated auditability, among other uses.

Before blockchain, inventory management was based on a reactive model, where replenishments were ordered once inventory was depleted, or a predictive model that estimated when inventory would run out.

With blockchain, warehouse inventory management can forecast demand accurately and thereby always have the right type and quantity of stock needed to meet expected demand. The technology makes it possible to optimize revenue and profitability, while reducing the risk of lost sales.

Blockchain is still in its begginer stage, especially in the world of warehouse operations, but the promise it holds for the industry can’t be denied. The benefits of the Traxalt plataform have the potential to change everything from inventory management to transportation tracking to logistics.

Elina is New York based writer and media consultant. Currently she is involved as an advisor in several ICOs. In addition to her professional interests, she loves jazz, modern art, coffee, and yoga.

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