Life cycle assessment (LCA) is a widely recognized tool used to evaluate the environmental impacts of a product or process, based on the environmental inventory database and bills of material. Data quality is one of the most significant factors affecting the analysis results. However, currently, most datasets in inventory databases are generic, i.e., they may represent the material and energy flow of a process at a market average, instead of a specific process used by a manufacturer. As a result, stockholders are unable to track their supply chain to find out the actual environmental impact from each supplier and to compare the environmental performance of alternative options. In this paper, we developed a new framework, i.e., blockchain-based LCA (BC-LCA), where blockchain technology is adapted to secure and transmit inventory data from upstream suppliers to downstream manufacturers. With BC-LCA, more specific data can be acquired along the supply chain in a real-time manner. Moreover, the availability, accuracy, privacy, and automatic update of inventory data can be improved. A case study is provided based on an industrial supply chain to demonstrate the utilization of BC-LCA.
Background: In relevant research, blockchain technology (BCT) is credited with great potential for supply chain management (SCM). However, even after more than 10 years of the technology’s existence, it is barely used for any self-sustaining applications. This raises the question of why BC cannot prevail against its alternatives. With this paper we want to identify criteria by which the added value of BCT can be measured. Furthermore, we want to evaluate how well the different supply chains (SC) exploit the added values of BCT. Methods: For this, we identified real-world examples and case studies for luxury, food, and healthcare SCs. These examples are described in detail and then analyzed for their added value compared to possible alternatives. Results: The results show that in the clusters of food and healthcare SCs, no general added value of BC over current best-practice solutions could be verified. Luxury SCs manage valuable products that are typically traded in small quantities. It is within this cluster that the implementation of BC can be justified best. Conclusions: In conclusion, this study shows that the application of BCT is especially beneficial for goods with a high value and low trade volume. In addition, the interface between reality and the digital twin should be as secure as the database or BC solution itself. Furthermore, the demand for transparency and immutability of data should be more important than the need to protect sensitive data. Finally, SC participants, especially the end customer, must also be able to appreciate the advantages of BCT.
The literature on blockchain technology and circular economy is at a nascent stage, with only initial limited and superficial recognition of the possible role blockchain may have in supporting circular economy laws and policies. This paper contributes to this emerging area by exploring the regulatory opportunities and challenges for adoption of blockchain for circular waste management. In particular, through a mixed methods approach combining empirical and doctrinal research, this paper presents initial findings on: (1) the current role of blockchain within the legal landscape on circular economies; (2) the regulatory barriers of blockchain application to circular economies; and (3) opportunities of blockchain in supporting regulatory mechanisms promoting circularity.
The presented research study tackles the topic of economic and material sustainable development in the built environment and construction industry by introducing and applying the concept and the potential of Non-Fungible Tokens (NFTs) on blockchain within the early stages of the design process via the interface of common design software. We present a digital infrastructure layer for architectural assets and building components that can integrate with AEC supply chains, enabling a more effective and articulated development of circular economies. The infrastructure layer consists of a combination of topology graphs secured with a blockchain. The paper concludes with a discussion about the possibilities of material passports as well as circular economy and smart contracts as an infrastructure for whole lifecycle BIM and digital encapsulation of value in architectural design.
Blockchain technology has been promised as a solution to social and environmental issues in supply chains. The potential includes reduction of vulnerable party exploitation and avoiding environmentally harmful practices. Yet, it remains unclear how these potential improvements are created and whether blockchain can truly contribute. Therefore, this field study explores and identifies the mechanisms for blockchain technology to facilitate positive social and environmental impacts in supply chains. We applied an explorative qualitative research approach and interviewed blockchain technology implementers and practitioners that allowed a detailed analysis of this problem despite the scarcity of practice data. The results include the development of a middle-range theory that shows barriers and drivers of blockchain-based technologies in supply chains, introduces the concept of blockchain-enabled system, and outlines expected outcomes and impacts. We further identify four impact pathways that describe how blockchain-enabled system create positive impact: (voluntary) market mechanisms, plausibility checks, smart contracts and tokenisation, and peer-to-peer trust. The study contributes by providing insights into “how” blockchain-based technologies in supply chains can lead to social and environmental impacts. The study also furthers the discussion on blockchain technology’s role in supply chain implementation and addresses the yet unresolved problem of measuring the impact of such blockchain-enabled systems.
Blockchain is a disruptive technology, which is crucial for business operations. In this article, we analytically explore how two manufacturers can achieve efficient buffer stock sharing using the blockchain technology (BCT). We first build an analytical basic model with a deterministic lead time for material replenishment and quantify the benefit of adopting a buffer stock sharing scheme. In the absence of BCT, we demonstrate the natural occurrence of a cheating problem. We analytically derive the overall value of blockchain technology (OVBCT) for the buffer stock sharing scheme and highlight the conditions under which it is increasing or decreasing in demand uncertainty. We also show how the buffer stock service level can be improved with the use of BCT. To show robustness of the analytical findings, several extended cases are explored. Novel buffer stock division rules are then generated under the proposed buffer stock sharing scheme, which makes the alliance profitable. In addition, an n-manufacturers alliance is further analytically explored. We find that the core findings from the basic model continue to hold in the extended models. Finally, we establish the conditions for achieving Pareto improvement with the use of BCT by considering the logistics services adopted.
This study aimed to investigate the relationships between blockchain adoption barriers and identified the salient stakeholders for blockchain adoption in containerized international trade. The interpretative structural modelling and Cross-Impact Matrix Multiplication Applied to Classification analyses indicated that the most impactful among the eight barriers are lack of support from influential stakeholders, lack of understanding regarding blockchain, and lack of government regulations. The stakeholder mapping analysis demonstrated that the high salient stakeholders among 11 legitimate stakeholders are container lines, ports, beneficial cargo owners, freight forwarders/third party logistics, and customs authorities. The study is original and contributes to theory and practice as it uncovers both impactful barriers and critical stakeholders by adopting a stakeholder theory perspective and offers significant implications to practice, policy, and theory by combining these two analyses.
Nowadays, using Blockchain Technology (BCT) is growing faster in each country. It is essential to apply BCT in Supply Chain Network Design (SCND) and is considered by the designer and manager of SC. This research indicates Viable Supply Chain Network Design (VSCND) by applying BCT. A new form of two-stage robust optimization is suggested. Facility locations and activation BCT for VSCND is the first stage of decisions; finally, we determine flow transshipment between components in the next stage. The GAMS-CPLEX is used for solving the model. The results show that running BCT will decrease 0.99% in costs. There is an economic justification for using BCT when demand is high. A fix-and-optimize and Lagrange relaxation (LR) generate lower and upper bound to estimate large scale in minimum time. The gap between the main model and fix-and-optimize is better than the LR algorithm. Finally, this research suggests equipping VSCND by BCT that becomes more resilient against demand fluctuation, sustainable, and agile.
Maximilian Klöckner, Christoph G. Schmidt, Stephan M. Wagner
Blockchain is a prominently discussed technology in operations and supply chain management and firms increasingly engage in blockchain initiatives. Yet, an understanding of the technology's financial value remains elusive. Based on 175 firm announcements between 2015 and 2019, we conduct an international event study to estimate the impact of blockchain initiatives on the market value of the firm. We empirically demonstrate that blockchain announcements are associated with a significant average abnormal return of 0.30% on the announcement day, and that there are indications of positive long‐term effects on shareholder value. We further demonstrate how blockchain use case, project, and firm characteristics affect the stock market reaction. Specifically, we find that the stock market reaction to blockchain announcements is less positive when blockchain is used to trace physical objects or to share sensitive data, providing empirical evidence for the risk associated with current challenges in the design of blockchain use cases. Our results also suggest that the involvement of an external information technology service provider in a blockchain project attenuates the positive stock market reaction. Interestingly, more innovative firms do not experience a stronger stock market reaction to blockchain announcements. Leveraging the international scope of our sample, we further shed light on how the firm's competitive (i.e., industry factors) and macro environment (i.e., country factors) affect the stock market reaction. Our findings indicate that the industry's R&D intensity and the country's data restriction level play a crucial role in driving the value attributed to blockchain initiatives.
Owing to blockchain characteristics such as transparency, traceability, and disintermediation, blockchain technology has been widely employed in sustainable supply chain management. The COVID-19 pandemic has accelerated the use of blockchain technology in the supply chain. Although most companies have realized the importance of blockchain technology, they often lack understanding of how to plan, measure, cultivate, and improve their own blockchain operation capabilities. Academic research has insufficiently explored the connotations and internal structure of blockchain operation capabilities and does not provide a clear understanding of how to transform blockchain operation capabilities to produce effective performance. In this context, we proposed a concept of blockchain operation capabilities for first time. We took the perspectives of the resource-based view and sociomaterialism theory, based on IT capabilities, big data analysis capabilities, and existing blockchain supply chain research, and explored the relationship between blockchain operation capabilities and competitive performance. We then constructed a hierarchical model for blockchain operation capabilities. To test our proposed research model, we used an online survey to collect data from 1206 firm managers with blockchain technology supply chain experience. The results showed that blockchain operation capabilities has a positive impact on supply chain integration and competitive performance, while supply chain integration has a strong mediating effect on the blockchain operation capabilities and competitive performance relationship. Implications for research and practice are discussed.
Luís Alves, Estrela Ferreira Cruz, Sérgio Ivan Lopes, Pedro Miguel Faria · 5 authors
The textile and clothing industry sector has today a big environmental impact, not only due to the consumption of water and the use of toxic chemicals but also due to the increasing levels of textile waste. One way to reduce the problem is to circularise the, currently linear, textile and clothing value chain, by using discarded clothes as raw material for the production of new clothes, transforming it into a model of circular economy. This way, while reducing the need to produce new raw materials (e.g. cotton), the problem of textile waste produced is also reduced, thus contributing to a more sustainable industry. In this article, we review the current approaches for traceability in the textile and clothing value chain, and study a set of technologies we deem essential for promoting the circular economy in this value chain - namely, the blockchain technology - for registering activities on traceable items through the value chain, and the Internet of Things (IoT) technology, for easily identifying the traceable items' digital twins.
Manimuthu Arunmozhi, V. G. Venkatesh, Yangyan Shi, V. Raja Sreedharan · 5 authors
With smart sensors and embedded drivers, today’s automotive industry has taken a giant leap in emerging technologies like Machine learning, Artificial intelligence, and the Internet of things and started to build data-driven decision-making strategies to compete in global smart manufacturing. This paper proposes a novel design framework that uses Federated learning-Artificial intelligence (FAI) for decision-making and Smart Contract (SC) policies for process execution and control in a completely automated smart automobile manufacturing industry. The proposed design introduces a novel element called Trust Threshold Limit (TTL) that helps moderate the excess usage of embedded equipment, tools, energy, and cost functions, limiting wastages in the manufacturing processes. This research highlights the use cases of AI in decentralised Blockchain with smart contracts, the company’s trading policies, and its advantages for effectively handling market risk assessments during socio-economic crisis. The developed model supported by real-time cases incorporated cost functions, delivery time and energy evaluations. Results spotlight the use of FAI in decision accuracy for the developed smart contract-based Automobile Assembly Model (AAM), thereby qualitatively limiting the threshold level of cost, energy and other control functions in procurement assembly and manufacturing. Customisation and graphical user interface with cloud integration are some challenges of this model.
As an important way to reduce emission, forestry carbon sink (FCS) has not been implemented effectively. Therefore, this paper aims to analyze the effectiveness and mechanism of applying blockchain technology in FCS projects by utilizing the differential game model. A Stackelberg differential game model between forest farmers and emission-controlled enterprises (ECEs) is developed to analyze the optimal emission reduction efforts and the optimal trajectory of forest farmers and ECEs before and after introducing blockchain technology. It is found that: (1) At the initial stage of the utilization of blockchain technology, if blockchain technology takes a leading role in stabilizing carbon prices, the ECEs prefer to purchase FCS instead of reducing emissions by their own technology. On the contrary, if blockchain technology takes a leading role in stimulating the vitality of the carbon trading market, ECEs tend to use emission abatement technology to meet the carbon quote requirements. (2) In the later stage, the incentive and stabilizing effects of blockchain technology on carbon prices tend to be balanced, and the emission reduction efforts of ECEs are lower than the efforts before applying blockchain technology. (3) The application of blockchain technology increases forest farmers’ willingness to reduce emissions because of its effection of cost reduction and efficiency improvement. Meanwhile, blockchain technology reduces abatement costs by influencing carbon prices. Therefore, blockchain technology improves forest farmers’ emission reduction efforts on the whole.
Abderahman Rejeb, Karim Rejeb, Steve Simske, Horst Treiblmaier
The emergence of blockchain technology has sparked significant attention from the supply chain management (SCM) and logistics communities. In this paper, we present the results from a thorough bibliometric review that analytically and objectively identifies the intellectual structure of this field, the seminal papers, and the most influential scholars. We employ a knowledge domain visualization technique to generate insights that go beyond other review studies on blockchain research within logistics and SCM. The analysis starts with selecting a total of 628 papers from Scopus and the Web of Science that were published during 2016–2020. The bibliometric analysis output demonstrates that the number of blockchain papers has rapidly increased since 2017. The most productive researchers are from the USA, China, and India. The top academic institutions contributing to the literature are also identified. Based on network analyses, we found that the literature concentrates mainly on the conceptualization of blockchain; its potentials for supply chain sustainability; its adoption triggers and barriers; and its role in supporting supply chain agility, trust, protection of intellectual property, and food/perishable supply chains. Besides systematically mapping the literature, we identify several research gaps and propose numerous actionable research directions for the future. This study enriches the extant blockchain literature, provides a timely snapshot of the current state of research, and examines the knowledge structure of blockchain research in logistics and SCM with the help of evidence-based scientometric methods.
Cross-border e-commerce, involving international product transactions via online and mobile platforms, is growing at a dramatic rate around the globe. One of the main concerns of brand firms is preventing counterfeit products from being sold under their names on e-commerce platforms. Counterfeit goods not only create economic losses to both the supply and demand sides, but also undermine efforts to improve sustainability. Proliferating counterfeits harm the brands of supply firms and trust in selling e-commerce platforms. In addition, they discourage participants in the supply chain from investing in social and environmental sustainability. If end-customers have access to detailed and comprehensive product information with a traceability system that can help overcome information uncertainty and asymmetry, losses can be prevented. The result of the pilot test has shown that securely shared in-depth product information among supply chain stakeholders from the supply side to end-customers can help prevent counterfeit goods from proliferating further by enabling consumers to determine the authenticity of products and report forgeries before paying.
It is necessary to identify what factors affect distributed trust and validate their effect on distributed trust and user satisfaction in an area of the food supply chain for sustainable business. The purpose of the present study is to examine determinants of distributed trust in the blockchain-based food supply chain and test seven hypotheses derived from the structural equation model integrating distributed trust, its three determinants, and user satisfaction. Transparency, traceability, and security are suggested as three determinants of distributed trust along the blockchain-based food supply chain. Data were collected from users of Chinese firms employing blockchain-based food supply chains to validate the research model and test the seven hypotheses. The present study contributes to clarifying the significance of distributed trust and suggesting evidence of its role in the food supply chain. The present study discussed trust-free systems based on blockchain technology related to sustainability through the findings.
The emergence of a new pandemic, known as COVID-19, has touched various sections of the supply chain (SC). Since then, numerous studies have been conducted on the issue, but the need for a holistic review study that highlights the gaps and limits of previous research, as well as opportunities and agendas for future studies, is palpable. Through a systematic literature review on blockchain technology (BCT) deployment in supply-chain management (SCM) concerning the COVID-19 pandemic, this research seeks to add to the content of previous studies and to enlighten the path for future studies. Relevant papers were found using a variety of resources (Scopus, Google Scholar, Web of Science, and ProQuest). Seventy-two articles were systematically selected, considering the PRISMA procedure, and were thoroughly analyzed based on BCT, methodologies, industrial sectors, geographical, and sustainability context. According to our findings, there is a significant lack of empirical and quantitative methodologies in the literature. The majority of studies did not take specific industries into account. Furthermore, the articles focusing on the sustainability context are few, particularly regarding social and environmental issues. In addition, most of the reviewed papers did not consider the geographical context. The results indicate that the deployment of BCT in several sectors is not uniform, and this utilization is reliant on their services during the COVID-19 pandemic. Furthermore, the concentration of research on the impacts of the BCT on SCM differs according to the conditions of various countries in terms of the consequences of the COVID-19 pandemic. The findings also show that there is a direct relationship between the deployment of BCT and sustainability factors, such as economic and waste issues, under the circumstances surrounding COVID-19. Finally, this study offers research opportunities and agendas to help academics and other stakeholders to gain a better knowledge of the present literature, recognize aspects that necessitate more exploration, and drive prospective studies.
Supply chain traceability is a dominant concern for many industries, regulators, and policymakers. In the textile and apparel industries, social, environmental, and sustainability issues are frequent causes for concern, highlighting the need for effective traceability solutions. Blockchain technology has characteristics that make it attractive for supply chain traceability applications. However, the literature lacks discussion of empirical cases. We discuss current blockchain applications in the textile and apparel industries and analyze an exemplar of a prominent blockchain traceability solution adopted by a world-leading fiber producer, the Lenzing group. In this study, we identify two related objectives for traceability-product authentication and supply chain sustainability. The case study analysis has stimulated a rich discussion about the different levels of traceability achievable across the supply chain, the digital identification of products, and the extension of blockchain solutions across the whole supply network. Significant technical and business challenges exist in extending traceability to the upstream raw material supply chain and to the dispersed garment manufacturing networks downstream. More broadly, the study highlights the need to (1) clarify the objectives of a traceability initiative, and (2) scope a traceability solution appropriately, both horizontally across the supply chain and vertically with respect to the granularity of the items traced.
Pallet management as a backbone of logistics and supply chain activities is essential to supply chain parties, while a number of regulations, standards and operational constraints are considered in daily operations. In recent years, pallet pooling has been unconventionally advocated to manage pallets in a closed-loop system to enhance the sustainability and operational effectiveness, but pitfalls in terms of service reliability, quality compliance and pallet limitation when using a single service provider may occur. Therefore, this study incorporates a decentralisation mechanism into the pallet management to formulate a technological eco-system for pallet pooling, namely Pallet as a Service (PalletaaS), raised by the foundation of consortium blockchain and Internet of things (IoT). Consortium blockchain is regarded as the blockchain 3.0 to facilitate more industrial applications, except cryptocurrency, and the synergy of integrating a consortium blockchain and IoT is thus investigated. The corresponding layered architecture is proposed to structure the system deployment in the industry, in which the location-inventory-routing problem for pallet pooling is formulated. To demonstrate the values of this study, a case analysis to illustrate the human-computer interaction and pallet pooling operations is conducted. Overall, this study standardises the decentralised pallet management in the closed-loop mechanism, resulting in a constructive impact to sustainable development in the logistics industry.
Adele Parmentola, Antonella Petrillo, Ilaria Tutore, Fabio De Felice
Abstract Blockchain is a disruptive technology that is revolutionizing information technology and represents a change of cultural paradigm for the way in which information is shared. Companies are rushing to understand how they can use blockchain distributed ledger technology to innovate processes, products and transactions. In a globalized world where environmental sustainability is a critical success factor, what is the role of the blockchain? By using a systematic review approach and the Preferred Reporting Items for Systematic Review and Meta‐Analyses (PRISMA) protocol, this study attempts to identify whether and how blockchain technology is considered able to affect environmental sustainability. Findings from 195 studies from 2015 to 2020 were analysed after the search protocol was applied. The results indicate that blockchain technology could contribute to environmentally sustainable development goals (SDGs) from different points of view, such as supporting the realization of a sustainable supply chain, improving energy efficiency and promoting the creation of secure and reliable smart cities. Furthermore, the investigation highlights the sectors where to focus research investments, providing a way to reward sustainable behaviour and increasing environmental sustainability. On the other hand, blockchain has no negligible negative effects on the environment that need to be considered before adoption.
In the transition to a circular focus on electric and electronic products, manufacturers play a key role as the originators of both the products and the information about the products. While the waste electric and electronic equipment (WEEE) directive’s contemporary focus is on handling the product as waste after its end of life, the circular economy focuses on retaining the product’s value with a restorative system. The polluter-pays principle requires producers of pollution to bear the costs of handling the pollution, leading to the extended producer responsibility (EPR) principle. This requires manufacturers to change their focus from their current passive role of out-sourcing end-of-life treatment to taking explicit responsibility for product management over an extended period of time. This paper investigates how a manufacturer can assume its responsibility to achieve circularity for its products. Based on our findings, three fundamental circularity principles, the circular electric and electronic equipment (CEEE) principles, for manufactures of electronic and electrical equipment are defined: (1) Serialize product identifiers, (2) data controlled by their authoritative source at the edge, and (3) independent actors’ access to edge data via a distributer ledger are the foundation of the Edge and Distributed Ledger (Edge&DL) model. We demonstrate the model through a case study of how to achieve circularity for lighting equipment. The CEEE principles and the demonstrated model contribute to building new circularity systems for electronic and electric products that let manufacturers undertake their extended product responsibility.