Wednesday, February 1

Digital ID in Supply-chain: Mutually understanding between suppliers


Decentralized digital ID is becoming a perfect choice for suppliers to build mutual trust in their supply chain management systems.

Digital ID in Supply-chain: Mutually understanding between suppliers

Digital ID in Supply-chain: Mutually understanding between suppliers

Blockchain-based digital ID reflects the way people share their access, control, and sharing their personal information. It gives back to people the power to control their identities. It could be a great potential for supply-chain management where there are still many complications in selecting proper vendors.

The challenges of manufacture industry

We are living in the manufacturing world. It is recorded that there are millions of manufacturers all over the world. Each of them is focused on producing one or different products for specific needs, thereby, the properties of each production line are also different. But the objectives of the manufacturing industry are the same. It’s all related to quality, safety, vendor selection, efficiency, and costs.

It could be a small manufacturing company or a company that relies on manufacturers to make their own products. For example, a ballpoint click pen can be made of many parts like tip, ink chamber, spring, barrel, and thrust device. Each part will probably be manufactured and supplied by different companies in order to suit the specific technical requirements and the price. 

The problem is in order to choose suppliers, this pen-manufacturing company has to trust them first. And in order to earn this trust, they have to collect enough a set of required information within a limit of time. From that, they have a base to decide whether they want to cooperate or not. 

Real-life process of verifying digital ID

In reality, data about suppliers are usually stored multiple times within the information systems of related companies or in a third-party database. This digital ID could be registration details, financial information, quality certification…

In order to keep up with the manufacturing process, these data need to be precise to build trust and be collected fast enough for decision making. After these data are collected enough, they will be evaluated by different teams for decision making and for risk assessment.

To make this happen, analysts and managers need a system where all information is reliable and transparent while all the collecting process is mostly manual and still requires numerous paper documents. Otherwise, they sometimes only can approach limited information sources, which leads to a lack of required information and then bad decisions.

Moreover, that information is stored in a centralized database of a third-party provider causes an unconscious dependency on the operation rule of this third-party. These manufacturing partners might also face the problem of a single failure, which means that all data could be violated once the system is hacked. 

No one wants to meet that situation. Digital ID based on a decentralized database is becoming a potential method to solve these problems. 

Seeking for a reliable supplier with Decentralized ID 

Seeking for a reliable supplier with Decentralized ID

Seeking for a reliable supplier with Decentralized ID

Elements of vendor selection is for manufacturers to ensure that they are able to obtain raw materials from a vendor that’s reliable and affordable. Finding a vendor that’s reliable and affordable can be a challenge to any manufacturing business. But with Decentralized ID, this challenge is no longer that much of a challenge.

Decentralized ID is a type of identity stored in the digital environment and using blockchain technology. It’s not only about registration details, financial information, quality certification… but a decentralized ID of a company also all the action, history of that company. These pieces of information can reflect a lot about a company with high reliability. 

With a digital signature, the information stored in the blockchain database is verified by using cryptography with immutability. The information once verified is unchangeable and tamper-proof. 

Besides, information is stored only one time with many copies stored in every node of the blockchain database. This creates transparency required in every transaction – a highly appreciated factor of reputation of a business.

Decentralization means that there is no third-party that can interfere in the information of vendors and their transactions. Vendors control their data and decide what and how to share it with their partners. At the same time, the crucial requirements of a transaction can be automatically collected and implified with smart contracts. Furthermore, this decentralized database helps vendors to avoid a single failure and secure their data.

This is a simple and effective solution for the process of evaluating potential vendors: the types of raw materials they make; their old and new customers; the age of their facilities and the technology they use; and the quality of the systems and standards that they have implemented. Thereby, reducing the costs of dealing with the consequence of bad services from bad suppliers. 


Traceability that ensures ethics and transparency in supply chain is important. Built on Hyperledger to run on any cloud, akaChain provides business with SDKs to speed up the development and traceability solution. With akaChain, blockchain-based digital ID system for assets can be made a reality to strengthen the supply-chain management system.

Contact us for more information: 
Phone: +84 962 516 915
Addresses: FLC Twin Towers, 265 Cau Giay street, Dich Vong Hau ward, Cau Giay district, Hanoi, Vietnam.


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