How to effectively use distributed ledger technology in supply chain management?

Abstract

Distributed Ledger Technology (DLT) refers to multi-party systems that enables saving encrypted data across a peer-to-peer network of nodes, without central authority. While DLT applications have been mainly studied in finance, we conduct empirical research on DLT application in supply chain management, combining theory testing and theory elaborating case research. Applying the Theory of Affordance Actualisation, we identify five DLT affordances: (1) verify product origin and history, (2) exchange data on digital product models, (3) track and trace products’ logistics, (4) simplify supply chain finance, and (5) automate payments. We identify and evaluate these affordances and also outline how these affordances can be actualised. We contribute to the discourse of DLT value creation and provide practical guidance to assess DLT potential in supply chains. We integrate our findings into the academic discussion on collaboration in viable, intertwined supply networks.