A Supply Chain Model with Blockchain-Enabled Reverse Auction Bidding Process for Transparency and Efficiency

Abstract

Blockchain technology as a foundation of distributed ledger offers an innovative platform for transparent and efficient transaction in Reverse Auction Bidding process in a supply chain for procuring carriers. This research work provides background and motivation for the use of Blockchain in such domains. A supply chain model is realized by deploying a smart contract in Blockchain to procure carrier. The model considers multi-attribute of the carriers while procuring one through the reverse auction bidding process. This research work validates the Blockchain-enabled supply chain model by simulating a supply chain proposed for a Dairy Company. Data to calibrate the simulation was taken from a published case study on Reverse Auctions in the supply chain. The result shows that the model is a feasible scheme and its features will offset the challenges of current RAB process making it more efficient and transparent.