Yeray Mezquita, Roberto CasadoâVara, Alfonso GonzĂĄlezâBriones, Javier Prieto · 5 authors
Abstract Logistics services involve a wide range of transport operations between distributors and clients. Currently, the large number of intermediaries are a challenge for this sector, as it makes all the processes more complicated. To face that problem, we propose a system that uses smart contracts to remove intermediaries and speed up logistics activities. Our new model combines smart contracts and a multi-agent system in a single platform to improve the current logistics system by increasing organization, security and getting rid of several human intermediaries to automate its processes, making distribution times significantly faster. Also, with this kind of approach, it is possible to apply penalties to parties that do not comply with the terms of using this platform.
This study assesses supplier selection at the beginning of project management to establish an evaluation system corresponding to blockchain tracing anti-counterfeiting platforms (BTAP). First, this paper determines 20 evaluation criteria from the four dimensions of platform overview, core technology, application support, and operations management. On this basis, multi-criteria decision making (MCDM) based on customer needs is proposed, which consists of three main steps. First, quality function deployment (QFD) and the best and worst method (BWM) are used to evaluate the four dimensions of the BTAP and specific evaluation criteria from the perspective of customers to obtain the criteria weight. Then, this method uses the extended Vlse Kriterjumska Optimizacija I Kompromisno Resenje (VIKOR) approach to sort the alternatives. Finally, the improved decision making trial and evaluation laboratory (DEMATEL) method is used to analyse the relationships between the 20 criteria in the four dimensions. The feasibility and effectiveness of this method are verified by an example. According to the sensitivity analysis and comparative analysis, the results show that this method can evaluate blockchain anti-counterfeiting enterprises. The main conclusions are as follows: the core technology is the most important factor influencing the choice of a BTAP project, and the role of application support in evaluation cannot be ignored.
Utkan Eryılmaz, Remco Dijkman, Willem van Jaarsveld, Wouter van Dis · 5 authors
Blockchain emerged as a peer-to-peer trust platform for trading virtual currencies and evolved to be used for different problems including supply chain provenance. Due to stringent requirements of safety, regulated manufacturing and service industries such as aerospace, healthcare, and transportation require regulated traceability for parts, from source to the last customer, with detailed information requirements for each handover and operation. In this research, we analyzed the current traceability problem and list use cases of a traceability blockchain platform. A prototype platform is developed for the aerospace industry where every single part is required to have source and path traces recorded by certified supply chain actors. We evaluate the efficiency benefits of the platform in terms of duration and address future research topics.
Abstract Although there are several special features in block-chain technology such as machine trust, traceability, and security, high energy consumption remains an issue in broadening the applications of block-chain technology. Some researchers proposed the use of proof of stake (PoS) mechanism rather than proof of work (PoW) mechanism to reduce energy consumption of block-chain. However, because PoS cannot guarantee fairness, mixed consensus mechanisms could be a solution and has been adopted in many studies. This paper aims to evaluate the performances of PoW, PoS and mixed consensus mechanisms from three aspects: energy consumption, fairness, and reliability. An agent-based model of a typical block-chain system equipped with different consensus mechanisms is created in NetLogo. This model simulates and evaluates the performances of different consensus mechanisms in the block-chain system.
Blockchain forks can have severe economic implications, sow uncertainty and undermine trust. In this paper, we introduce a formal framework to study the emergence, persistency and economic consequences of blockchain forks. We argue that blockchain forks can be process- or protocol-based and emerge unintentionally or deliberately. We then proceed with a sub-classification of protocol-based forks and study the circumstances under which a chain split may become permanent. It can be shown that the persistency of a fork depends on the nature of the change to the consensus rules and on the relative allocation of the consensus-relevant resources. Lastly, we discuss business implications as well as potential consequences for policy makers and practitioners.
In this paper, we present a pricing mechanism that aligns incentives of agents who exchange resources on a decentralized ledger with the goal of maximizing transaction throughput. Subdividing a blockchain ledger into shards promises to greatly increase transaction throughput with minimal loss of security. However, the organization and type of the transactions also affects the ledger's efficiency, which is increased by wallet agents transacting in a single shard whenever possible while collectively distributing their transactions uniformly across the available shards. Since there is no central authority to enforce these properties, the only means of achieving them is to design the system such that it is in agents' interest to act in a way that benefits overall throughput. We show that our proposed pricing policy does exactly this by inducing a potential game for the agents, where the potential function relates directly to ledger throughput. Simulations demonstrate that this policy leads to near-optimal throughput under a variety of conditions.
Marjaneh Jahangiri Lahkani, Shouyang Wang, Mariusz UrbaĆski, Mariya Egorova
Information technology advancements integrated with the e-commerce supply chain allow participants in the business process to effectively work with large volumes of data and control transactions. To improve the profitability and competitiveness of e-commerce companies, a blockchain solution was incorporated into the global B2B (Business-to-Business) supply chain. This technology simplified the transaction process by providing all participants in the sustainable B2B buying process with the same data about the trade. Overall, the use of blockchain improved the efficiency of logistics and digital documentation which reached 74% and 75%, respectively. The main advantage of using blockchain is that it creates a decentralized database that is secure. In addition, it increases the speed of payment and the reliability and transparency of data transfer. Further research may focus on the use of blockchain in green logistics to improve environmental sustainability in the e-commerce supply chain.
Purpose This paper aims to investigate how blockchain has moved beyond cryptocurrencies and is being deployed to enhance visibility and trust in supply chains, their limitations and potential impact. Design/methodology/approach Qualitative analysis are undertaken via case studies drawn from food companies using semi-structured interviews. Findings Blockchain is demonstrated as an enabler of visibility in supply chains. Applications at scale are most likely for products where the end consumer is prepared to pay the premium currently required to fund the technology, e.g. baby food. Challenges remain in four areas: trust of the technology, human error and fraud at the boundaries, governance, consumer data access and willingness to pay. Research limitations/implications The paper shows that blockchain can be utilised as part of a system generating visibility and trust in supply chains. Research directs academic attention to issues that remain to be addressed. The challenges pertaining to the technology itself we believe to be generalisable; those specific to the food industry may not hold elsewhere. Practical implications From live case studies, we provide empirical evidence that blockchain provides visibility of exchanges and reliable data in fully digitised supply chains. This provides provenance and guards against counterfeit goods. However, firms will need to work to gain consumer buy-in for the technology following repeated past claims of trustworthiness. Originality/value This paper provides primary evidence from blockchain use cases âin the wildâ. The exploratory case studies examine application of blockchain for supply chain visibility.
The research and thinking pertaining to blockchain have thus far focused on cryptocurrency and Bitcoin. However, there is increased interest in using the technology to solve operational challenges in manufacturing and service supply chains. In this study, we introduce a new implication of using blockchain technology and propose two unique contributions. First, we introduce the notion of computational costs (measured in units of gas) as an essential mechanism for completing operational transactions in the blockchain environment. Second, we discuss the use of smart contracts and their influence on operational transactions. To investigate the link between blockchain transaction and computational costs, this study uses an experimental methodology. We develop and implement a fully functional virtual public blockchain to store, validate, and maintain transactions. The methodology provides a process to measure the computational costs, frequency, and intensity of transactions. This research contributes to conceptual research on the blockchain implementation paradigm. Its novelty stems from the identification of computational costs for operational transactions and use of an experimental methodology. This research provides managers an insight into the design of smart contract transactions in a supply chain from a cost perspective.
Blockchain has become very popular as the underlying technology powering Bitcoin. However, the benefits behind this technology further surpass just supporting cryptocurrencies. Blockchain can be defined as a digital ledger that allows to capture transactions conducted among several parties on real-time and serves as a decentralized database where each participant keeps an identical copy of the ledger. The appeal behind blockchain resides on its peer-to-peer network infrastructure along cryptographic capabilities. This combination enables users to conduct transactions without a trusted third-party intermediary. Benefits in accounting are even more promising as blockchain will provide a triple entry accounting system where all transactions are immutable and have been time stamped, recorded on real-time and encrypted The purpose of this paper is to review extant research on this technology and assess the impact of blockchain in the audit profession, including new risks, change in procedures and additional opportunities.
Companies trying to build new solutions using blockchain are confronted with\na plethora of available concurrent technologies that have many control knobs\nwhich require fine-tuning by experts. Exiting studies that build decision\nmodels for blockchain adoption or selection lack an automated way to use\nnon-functional requirements to provide recommendations. In this paper, we build\na knowledge base for blockchain solutions by analyzing whitepapers and studies,\nbut also our benchmark results performed in a controlled environment. Then, we\nimplement a Multi-Criterion Decision Analysis method to determine the most\nsuitable blockchain solution from companies provided requirements and\npreferences. Finally, we illustrate our approach by running the decision\nprocess on a realistic supply-chain use case. This paper provides a rationale\nfor blockchain deployment choices. While still limited in scope, we plan to\ninclude more blockchain alternative and more flexible requirements inputs in\nfuture work.\n
Blockchain â also known as distributed ledger â technology is set to revolutionise data and business process management and transactions. Blockchain adoption, pioneered initially as a financial tec...
Despite the anticipated benefits and the numerous announcements of pilot cases, we have seen very few successful implementations of blockchain technology (BCT) solutions in supply chains. Little is empirically known about the obstacles to blockchain adoption, particularly in a supply chain's interorganizational setting. In supply chains, blockchains' benefits, for example, BCTâbased tracking and tracing, are dependent on a critical mass of supply chain actors adopting the technology. While previous research has mainly been conceptual and has lacked both theory and empirical data, we propose a theoryâbased model for interorganizational adoption of BCT. We use the proposed model to analyze a unique inâdepth revelatory case study. Our case study confirms previous conceptual work and reveals a paradox as well as several tensions between drivers for and against (positive and negative determining factors, respectively) of BCT adoption that must be managed in an interorganizational setting. In this vertical context, the adoption and integration decision of one supply chain actor recursively affects the adoption and integration decisions of the other supply chain actors. This paper contributes midrange theory on BCT in supply chain management (SCM), future research directions, and managerial insights on BCT adoption in supply chains.
Sebastian Kummer, David M. Herold, Mario Dobrovnik, Jasmin Mikl · 5 authors
Potential blockchain applications in logistics and transport (LSCM) have gained increasing attention within both academia and industry. However, as a field in its infancy, blockchain research often lacks theoretical foundations, and it is not clear which and to what extent organizational theories are used to investigate blockchain technology in the field of LSCM. In response, based upon a systematic literature review, this paper: (a) identifies the most relevant organizational theories used in blockchain literature in the context of LSCM; and (b) examines the content of the identified organizational theories to formulate relevant research questions for investigating blockchain technology in LSCM. Our results show that blockchain literature in LSCM is based around six organizational theories, namely: agency theory, information theory, institutional theory, network theory, the resource-based view and transaction cost analysis. We also present how these theories can be used to examine specific blockchain problems by identifying blockchain-specific research questions that are worthy of investigation.
Christian F. Durach, Till Blesik, Maximilian von DĂŒring, Markus Bick
Blockchains, a disruptive technology with potentially many applications in modernâday supply chain (SC) transactions, have not been adequately reflected by theory. Researchers and business managers must understand where and when blockchainsâ application may be expected and investigated. The present study clarifies the discussion about blockchain application areas (BAAs) in SC transactions and their relevance for businesses. This study combines the findings from three methodological approaches: an extant literature review, a Delphi study, and a survey of 151 German machinery and equipment sector business managers. The results further our understanding of blockchainsâ business opportunities among SC transactions and verify and extend Iansiti and Lakhaniâs ( Harvard Business Review 2017; 95: 118) blockchain adoption framework. Verified customer reviews and product quality certification are identified as the most relevant blockchain usages in SC transactions. Interestingly, we anticipate the least likely adoption of blockchains to occur for documentâsigning processes despite arguments within the literature that suggest otherwise. Two newly identified BAAsâlogistics and delivery systemsâand tokenâcurated registries rank among the top four most relevant. The present studyâs valuation of BAAs advances theory and will likely affect business strategies by indicating where, when, and why businesses should participate in blockchain networks.
<p style='text-indent:20px;'>Manufacturers often face capital constraints when opening up online channel, at this time external financing and internal financing are usually considered. Previous literature has shown that internal financing, turns out to be a better option. To figure out how trade credit financing discount contract affects operations and performances of supply chain, this paper studies the pricing decision of a retailer-dominant dual-channel supply chain with manufacturer's capital constraints. The Stackelberg game models under centralized decision and decentralized decision are constructed. Moreover, this paper conducts research about the effects of revenue-sharing (RS) contract, direct channel price discount (DP) contract and retail channel price discount (RP) contract on the performance of supply chain. Numerical examples are provided to explore the comparison of the optimal pricing strategies and total profits under different contracts. The results show that the retailer prefers RS and DP contracts to RP contract. Among them, RS contract has a broader scope of coordination, while DP contract can achieve a higher profit. The results can serve as insights for decision-makers to choose the most appropriate financial discount contract.
Saidjahon Hayrutdinov, Mahmoud S. R. Saeed, Azamat Rajapov
The study proposes a supply chain contractual coordination model based on the product lifecycle information sharing effort and consumers' price sensitivity to a product with the Blockchain system. This paper examined the following five scenarios: (1) centralized supply chain with Blockchain system-based product lifecycle information sharing investment; (2) Stackelberg leader retailer processed and invested Blockchain system scenario; (3) retailer processed the Blockchain system cost-sharing scenario; (4) retailer processed Blockchain system investment through bargaining the revenue-sharing model; (5) Blockchain system investment under the cost and revenue-sharing contract. The study used the game theory reverse induction method to compare the Nash equilibrium solutions under different decision-making scenarios and discussed the chain memberâs constraint condition of Blockchain system investment. We simulated and analysed the productsâ lifecycle information sharing effort cost factor, the influence of price sensitivity coefficient, and expected profits of the supplier and retailer. The study results show that the product lifecycle information sharing effort under the Blockchain system increases the profit of the whole chain and decreases with the increase of customerâs price sensitivity coefficient.
Blockchain technology, as a bedrock for distributed ledgers, offers a platform for innovation for a new decentralized and transparent transaction machinery in industries and businesses, and the port is not an exception. The inbuilt features of this technology enrich trust through transparency and traceability within any transaction of data, goods, services, and financial resources. Notwithstanding initial doubts about this technology, lately government and large corporations have offered to adopt and enhance this technology in various fields of applications, from social and legal industries, and finance to design, maritime and port networks. In this paper, the authors review the current status of the Blockchain technology and some of its applications. The potential benefit of such a technology in port and maritime supply chain is then discussed, and a vision for the future Blockchain ready port and maritime supply chain are proposed. The importation of containerized vehicles is used as an example to demonstrate how such technology can be deployed in a global port industry. Finally, the requirements and challenges to adopt this technology in the future in relation to, port and maritime systems are discussed.
In this paper, a Blockchain-driven platform for supply chain finance, BCautoSCF (Zhi-lian-che-rong in Chinese), is introduced. It is successfully established as a reliable and efficient financing platform for the auto retail industry. Due to the Blockchain built-in trust mechanism, participants in the supply chain (SC) networks work extensively and transparently to run a reliable, convenient, and traceable business. Likewise, the traditional supply chain finance (SCF), partial automation of SCF workflows with fewer human errors and disruptions was achieved through smart contract in BCautoSCF. Such open and secure features suggest the feasibility of BCautoSCF in SCF. As the first Blockchain-driven SCF application for the auto retail industry in China, our contribution lies in studying these pain points existing in traditional SCF and proposing a novel Blockchain-driven design to reshape the business logic of SCF to develop an efficient and reliable financing platform for small and medium enterprises (SMEs) in the auto retail industry to decrease the cost of financing and speed up the cash flows. Currently, there are over 600 active enterprise users that adopt BCautoSCF to run their financing business. Up to October 2019, the BCautoSCF provides services to 449 online/offline auto retailors, three B2B asset exchange platforms, nine fund providers, and 78 logistic services across 21 provinces in China. There are 3296 financing transactions successfully completed in BCautoSCF, and the amount of financing is „566,784,802.18. In the future, we will work towards supporting a full automation of SCF workflow by smart contracts, so that the efficiency of transaction will be further improved.
Blockchain technology has received significant attention recently, as it offers a reliable decentralized infrastructure for all kinds of business transactions. Software-producing organizations are increasingly considering blockchain technology for inclusion into their software products. Selecting the best fitting blockchain platform requires the assessment of its functionality, adaptability, and compatibility to the existing software product. Novice software developers and architects are not experts in every domain, so they should either consult external experts or acquire knowledge themselves. The decision-making process gets more complicated as the number of decision-makers, alternatives, and criteria increases. Hence, a decision model is required to externalize and organize knowledge regarding the blockchain platform selection context. Recently, we designed a decision support system to use such decision models to support decision-makers with their technology selection problems in software production. In this article, we introduce a decision model for the blockchain platform selection problem. The decision model has been evaluated through three real-world case studies at three software-producing organizations. The case-study participants asserted that the approach provides significantly more insight into the blockchain platform selection process, provides a richer prioritized option list than if they had done their research independently, and reduces the time and cost of the decision-making process.
In the past, it was difficult to check, identify, and trace product quality. Quality violation regularly takes place when consumers know product quality is overstated. In this paper, we examine the motivation for and implication of a supply chain that adopts blockchain technology to improve product quality in supply chains. We build up a stylish model in which a two-echelon supply chain consisting of one manufacturer and one retailer. The manufacturer decides whether or not to adopt blockchain and the retailer sells products to consumers. Our results imply that the manufacturer always provides a low-quality product without blockchain but when the quality-cost ratio is sufficiently high with the affordable blockchain adoption cost, blockchain technology could encourage the manufacturer to produce high-quality products.
Sen Liu, Yanan Hu, Xiao Zhang, Yanfeng Li · 5 authors
The emergence of blockchain technology has significantly changed the underlying infrastructure of existing information technology and will fundamentally affect the production modes of enterprises. However, because the application of blockchain is still in its infancy, it is difficult for an enterprise to develop a comprehensive assessment of various types of blockchain service providers in the market. Hence, enterprises need scientific decision tools to estimate which blockchain service provider is appropriate. However, few studies have focused on this phenomenon. Therefore, to address this challenge, this investigation proposes a novel integrated multi-attribute group decision-making (MAGDM) method to help enterprises estimate which blockchain vendor is more appropriate by considering more comprehensive influence factors. The proposed method is defined in an intuitionistic fuzzy environment and integrates entropy and the best-worst method (BWM) for comprehensive weighting of decision makers (DMs), subjective criteria and objective criteria in the decision-making process to make the decision results more reliable and reasonable. A numerical example and comparison are provided to illustrate the practicability and usefulness of the method. This study enriches the theory and methodology of blockchain technology and MAGDM analysis.