5 Reasons Why Supply Chain Management Requires Web 3.0

Blockchain technology, along with tokenization, has revolutionized business transactions globally. Web 3.0, the new but powerful internet technology, can aid blockchain by decentralizing data. Web 3.0 has taken many industries by storm, including the supply chain sector. The machine learning and artificial intelligence capabilities of Web 3.0 can offer several benefits to the supply chain process in terms of information storage and access. In this blog, we dive deep into Web 3.0 technology and analyze its role in enhancing supply chain management.

What is Web 3.0-based Supply Chain and Logistics Management?

Logistics and supply chain management are essential components of the global economy, facilitating the movement of goods and ensuring their availability in the market. However, in recent times, the shipping industry has faced challenges such as backlogs in shipping ports and disruptions in the supply chain, leading to reduced product availability. When Web 3.0 is integrated with logistics and supply chains, it offers several benefits, such as decentralized data management, better supply chain control, and aggregation. The capacity of Web 3.0 in supply chain management is not restricted only to blockchain. It is an integration of several technologies, such as ML, AI, distributed ledgers, and smart contracts, created in Web 3.0-based programming languages. All linking records of the supply chain flow are maintained as an open record demonstrating data integration across various entities such as suppliers, organizers, etc. Seamless data coordination facilitates transparency in operations and reduces administrative costs and risk throughout the supply chain sequence. All materials can be easily traced with increased visibility, losses can be reduced, and accuracy can be improved with the help of detailed monitoring. With Web 3.0, all transaction records of physical assets can be maintained in a distributed and decentralized manner via distributed ledgers to track their flow from production until delivery. Web 3.0 integration with the supply chain offers detailed product histories, providing the required transparency to businesses and consumers. The identity verification feature of Web 3.0 gives accurate information about all responsible parties in the supply chain for goods and merchandise flow.

Features of Web 3.0-based Supply Chain

1. Uninterrupted tracking

Web 3.0’s distributed ledger can ensure that the supply chain participants can perform 360-degree tracking and monitor all activities from start to finish. They can perform real-time monitoring of tasks such as orders, workflows, packaging, payments, and transportation at all times.

2. Automatic record-keeping

Web 3.0 integration ensures that all the information about supply chain transactions between stakeholders from the relevant ERP systems and databases is validated and recorded automatically. This data is then safely stored in the distributed ledgers.

3. Identity management

Built on the principles of blockchain technology, Web 3.0 has advanced identity management features. It offers verification and validation of supplier data by trusted authorities and provides a powerful audit trail for the perusal of all the suppliers on the chain.

4. Smart contracts

Web 3.0 supports smart contracts that automatically regulate the supply chain via pre-defined instructions. Once all the parties in the supply chain agree to and adhere to these conditions, they are automated. Some of these clauses include tracking logistic metrics, monitoring articles, checking transportation at all intervals, and processing payments to relevant parties at the time of delivery.

5. High-level security

Web 3.0, when integrated with logistics and supply chains, can attain a high level of security through multi-factor authentication, data encryption, fraud detection, and permission-free access. A hash value is generated for all the blocks in the blockchain network. This encrypted, unique identifier value will change only if any of the data in the supply chain blocks is altered. Consequently, the hash value of the subsequent blocks will also be altered. This hashing feature of Web 3.0 guarantees maximum security and prevents malicious attacks on the supply chain data network.

6. Clear Audit Trail

Since Web 3.0 with the supply chain is built on blockchain technology, it can keep track of any changes made to contracts, purchase or sales orders, product certificates, and crucial reports. Due to a clear and consistent audit trail, all parties can view and share documents consistently.

Reasons why Web 3.0 is required in Supply chain Management

1. Improved traceability

Web 3.0 guarantees high operational efficiency in the supply chain due to its monitoring and secure mapping. Web 3.0, along with blockchain, enables businesses to grant their customers reliable product and transaction information on demand. Enterprises can better understand logistics and supply chains with the right metrics, and Web 3.0 and the blockchain are the ideal solutions.

2. Better transparency

Web 3.0 helps to maintain security within the supply chain management process through unique hash IDs for various data and transactions. Since the authenticity of information can be maintained, data in the Web 3.0-driven supply chain can be changed and validated in real-time.

3. The clarity in asset ownership

Backed by Web 3.0 and blockchain, the supply chain members can tokenize the assets that have legal and appropriate ownership by dividing them into equal parts. These tokens can be traded, and these digital ownerships can be transferred in real-time. These traceability and ownership exchange features are key benefits that Web 3.0 can offer the supply chain industry.

4. Ensures Regulatory compliance

Several industries, especially the pharmaceutical sector, struggle to maintain regulatory compliance due to the stringent rules about stocking prescription medications. Web 3.0 can help maintain regulatory compliance and cut down on expenses by avoiding manual errors. By maintaining and delivering updated information transparently to all the supply chain stakeholders, Web 3.0 can considerably enhance reporting and compliance for all industries.

5. Grants more visibility to the supply chain

Since Web 3.0 allows for greater visibility in the supply chain, any product recalls can be managed more effectively. While product recalls may be essential to prevent illnesses or health issues, these can severely impact losses due to reduced sales, restoration, and so on. Web 3.0 allows for more traceability in the supply chain, helps businesses quickly find counterfeit or damaged items, and calls for a faster recall. Web 3.0 can facilitate effective and less expensive recalls by streamlining product recalls in the supply chain.

How does a supply chain implement Web 3.0 Technology?

  • Supply chains that use Web 3.0 rely on authorization-based blockchains to exchange information.
  • Only certain user groups have access to data in the supply chain after verification.
  • The distributed ledger functions as a single, centralized form of information that is shared and updated among the supply chain participants.
  • The supply chain stakeholders, such as suppliers, distributors, and manufacturers, communicate via the underlying blockchain technology to share and locate data.


The global market is becoming hugely dependent on supply chain management, and businesses can leverage the transparency of Web 3.0 and blockchain to manage their supply chains better. They can eliminate siloed data, immediately identify production or delivery issues, and communicate crucial details with relevant supply chain participants. The growing need for accountability, data security, and operational reliability are the main factors driving the quick adoption of Web 3.0-based supply chain management. To leverage the power of Web 3.0 and blockchain for enhanced supply chain management, consider partnering with STL Digital, the next-generation disruptor in providing IT solutions and services for idea-to-market across industries. With STL Digital, you can unlock the benefits of transparency, accountability, and data security in your supply chain processes. Streamline your operations, eliminate siloed data, and gain real-time insights into production and delivery issues. Take the next step towards a more efficient and reliable supply chain by contacting STL Digital today.


1. Does Web 3.0 comprise Blockchain?

It is the other way around; Web 3.0 technology is built on blockchain.

2. What is Web 3.0?

Simply put, Web 3.0 is the next-generation web technology where users are connected via a decentralized network and can access their data.

3. Is Web 3.0 a front end or a back end?

Web 3.0 is an app that connects the front end to the back end.

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