Optimizing Regulatory Compliance in Supply Chains with Blockchain and Gaussian Process Regression

Abstract

Increased regulation of the supply chain is another important issue of concern to industries in distinct countries as they struggle to implement the regulation in a network setting. This paper aims to explore ways to improve regulatory compliance through the application of the blockchain and machine learning model, namely Gaussian process regression. Blockchain is an accurate and permanent record-keeping system that can be applied to track the flow of items and associated activities in the supply chain. Compliance can also be enforced, and through smart contracts, analyses of various parameters such as obligations can be monitored and adjusted automatically through GPR which involves the analysis of data from systems that use blockchain to model compliance risks and predict compliance issues. Thus, using the above-mentioned technologies, a company can prevent compliance failures, meet the necessary standards and set up a constant process of improvement in the supply chain area. This research specifically defines the theoretical foundations, application, and advantages of blockchain and GPR in enhancing the compliance of supply chains with the regulations in this work. In this approach, case-study and use of examples show how this approach works in handling compliance issues in several industries.