Global supply chains shift to meet exceeding expectations in supply chains lead to the need for digital technologies in supply chain management. Industry 4.0 has emerged in sustainable supply chain systems, blockchain is prominent, with the potential of immutable transparent data. Blockchains present potential to disrupt supply chains through digital transformation by enabling provenance, visibility, relationships, collaboration, lower costs, and enabling real-time trusted data. Scholars are increasingly investigating blockchain adoption, with an emphasis on technology acceptance modelling. Current research is valuable to understand potentials of blockchain technology in supply chains however, there is limited work on the building blocks for blockchain adoption in digital transformation of supply chains. This study aims to investigate through a systematic literature review and case studies, the building blocks for blockchain adoption in digital transformation of sustainable supply chains. Blockchain adoption in supply chain management is receiving increasing attention, along with highlights of critical factors. This paper offers a building block model that is in three main phases; pre-adoption, adoption, and the post adoption. The model indicates that adoption context, blockchain technology platform offerings, strategic responses, and adoption readiness are some key building blocks, particularly at the pre-adoption phase. Trust and supply chain network, firm resources, and blockchain costs are all considered critical in the considerations of the building blocks. In addition, aligning supply chain objectives with blockchain systems is critical and so is blockchain compatibility. Law and governance are amongst the two prominent challenges in blockchain adoption and should be considered as part of the building blocks for blockchain adoption.
The automotive value chain comprises a complex manufacturing network, which encompasses several departments, companies, and even countries. In the age of electrification and autonomous driving, the quality and transparency requirements are rising, in particular for electric and electronic components, which contribute to safety-critical functionalities. In this research, we analyze the traceability requirements and liability implications for the automotive manufacturing network. A key component in preventing safety and quality deficiencies in manufacturing processes is a state-of-the-art traceability system. Accordingly, we propose a blockchain-based traceability architecture to achieve the aspired level of transparency and process security. The proposed blockchain architecture processes manufacturing data entries and defines blockchain nodes, access, as well as consensus algorithm and transaction logic. An Ethereum-based blockchain demonstrator validates the architecture by implementing the logic for automotive product configuration and process sequencing based on the semi-fungible ERC 1155 token, the proof of authority consensus, and an automotive product token smart contract.
Pratyush Kumar Patro, Raja Wasim Ahmad, Ibrar Yaqoob, Khaled Salah · 5 authors
Product recall management in the automotive industry is a challenging problem that affects human lives and the safe operation of automobiles. Product recalls can assist in removing potentially unsafe products from the marketplace and minimizing a company’s responsibility for corporate negligence. Today’s systems and technologies leveraged for product recall management in the automotive supply chain fall short in providing transparency, traceability, reliability, audit, security, and trust features. In this paper, we propose a blockchain-based approach to overcome the aforementioned problems related to product recall management. We employ the public Ethereum blockchain and integrate it with the decentralized storage of the InterPlanetary File System (IPFS) to deal with the large-sized data problem. We present the system design and six algorithms explaining the working principles, information exchange flow, and stakeholders’ detail and their sequential interactions. We discuss the implementation details, generalization aspects, and cost and security analyses to evaluate the performance of the proposed approach. The proposed solution is cost-effective, secure, and enables automakers to have end-to-end visibility of information during product recalls. We make the smart contracts’ code publicly available on GitHub.
This study introduces a dual‐channel supply chain including a supplier and a retailer with capital constraints, in which the retailer can apply for the trade credit financing from the supplier. This work investigates the effects of two typical behaviors, free riding behavior and consumer switching behavior, on inventory, ordering, and sales effort decisions in decentralized and centralized decision situations with stochastic demand. In order to achieve the optimal performance in the centralized system, this research designs a partial buyback contract to coordinate the supply chain. Furthermore, numerical analysis is provided to test the feasibility of the model. The results indicate that in the dual‐channel supply chain with the above two behaviors, (1) the optimal sales effort level, optimal order quantity, the optimal offline, and online profits under the centralized decision‐making are more than those under decentralized scenario, except for the optimal inventory level; (2) the increase of the offline consumer switching rate will lead to the reduction of the offline order quantity and the offline expected profit and raise the online inventory level and the online expected profit; (3) the increase of the online consumer switching rate will raise the offline order quantity and the offline expected profit but has no significant impact on the online inventory level and the online expected profit; (4) the increase of the free riding coefficient of the supplier, no matter whether in decentralized or centralized systems, will reduce the offline sales effort level, the offline expected profit, and the online expected profit and raise the inventory level. Finally, this work provides some managerial implication.
Problem definition: For many supply chains, deep-tier suppliers, due to their small size and lack of access to capital, are most vulnerable to disruptions. We study the use of advance payment (AP) as a financing instrument in a multitier supply chain to mitigate the supply disruption risk in a traditional system (with limited visibility) and a blockchain-enabled system (with perfect visibility). The main goal of this paper is to shed light on how blockchain adoption impacts agents’ operational and financial decisions as well as profit levels in a multitier supply chain. Academic/practical relevance: Traditionally, because of the limited visibility in the deep tiers, powerful downstream manufacturers’ financing schemes offered to their immediate upstream suppliers are not effective in instilling capital into the deep tiers. Advancements in blockchain technology improve the supply chain visibility and enable the manufacturer to better devise deep-tier financing to improve supply chain resilience. Methodology: We develop a three-tier supply chain model and take a game-theoretic approach to compare how blockchain-enabled deep-tier financing schemes affect a financially constrained supply chain’s optimal risk-mitigation and financial strategies. Results: We find that although improved visibility via blockchain adoption can help the manufacturer make informed supply chain financing decisions, whether it can benefit all supply chain members depends on the financing schemes in use. Blockchain-enabled delegate financing increases risk-mitigation investments and benefits all three tiers of the supply chain only when the tier 2 supplier is severely capital-constrained with the working capital below a threshold. Because delegate financing endows the intermediary tier 1 supplier with leverage over the manufacturer, the inefficiency inhibits an all-win outcome when the tier 2 supplier is not severely capital-constrained. Blockchain-enabled cross-tier direct financing exhibits a compelling performance as it always leads to win-win-win outcomes (and is thus ubiquitously implementable) regardless of the suppliers’ working capital profile. Managerial implications: Our insights help firms assess opportunities and challenges associated with enhancing supply chain visibility via blockchain adoption.
Johannes Mayer, Philipp Niemietz, Daniel Trauth, Thomas Bergs
The vision of the Paris Climate Convention is global greenhouse gas neutrality by 2050. Manufacturing industry accounts for approximately 25% of global greenhouse gas. The achievement of emission targets requires joint implementation and the participation of the employee. An incentive concept based on a Distributed Ledger Technology allows the automatically reward of climate protection measures based on tamper-proof stored Key Performance Indicators. The technology also enables the automated payment of a CO2-tax proportional to energy consumption. A technology recommendation for the incentive concept based on an analysis of the technological requirements for a distributed ledger completes the paper.
Most current blockchain and carbon emission studies are from engineering and sciences disciplines. By incorporating blockchain technology into supply chain integration capabilities, the firms are be able to work collaboratively with each other to enhance the supply chain integration and simultaneously reduce the carbon emission in a supply chain. This paper presents a conceptual framework to understand the role of blockchain in a low carbon supply chain management. Applying the Socio-Technical Theory and Resource-Based View, the research propositions between blockchain, supply chain integration capability and carbon emission are proposed in the research framework. The results indicate that the blockchain technology may be viewed as a strategic management approach to enhance supply chain integration and reduce the carbon emissions. In addition, it may be adopted as an operational tool to track carbon footprint, streamline processes and improve efficiency of carbon management to minimize the overall emissions in supply chains. The paper contributes to the blockchain literature and its applications in low carbon supply chain management and provides recommendation for future research.
Despite there are some arguments about blockchain, it has been highlighted as an important distributed secure technology in the 21 st century. It is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Dobrovnik et al. (2018) suggest that blockchain is a revolutionising technology that would change industries at an international level, add values to firms and supply chain networks, improve commerce, and drive economy. Although blockchain has attracted attentions, very few blockchain studies have been focussed on supply chain integration and collaboration areas. This study illustrates the possibilities of applying blockchain technology in the coordination of activities for effective and efficient supply chain management. The study takes a closer look at the use of blockchain in supply chains beyond cryptocurrency, payment, and finance via the use of smart contract and consensus algorithm (i.e., imposing constraints). The key attributes of blockchain are discussed and potential questions were identified in New Zealand. The expected outcome of this study will advance the understanding of the blockchain and supply chain literature, besides inspire both researchers and practitioners to consider the use of blockchain in different context-aware future studies.
Saša Malešević, Michael Lustenberger, Florian Spychiger
Improving current supply chains by using distributed ledger technology (DLT) has been a highly researched topic during the last years. Currently, there are numerous articles elaborating on how such technologies can theoretically improve supply chains. However, case studies of such concepts and their economic value are scarce. In order to bridge this gap, we collaborated with a regional label company to clarify how a distributed ledger technology would benefit their ecosystem. This work answers the question of how such a prototype would look and whether it adds value. By following design science research practices, we design two artifacts based on requirements gathered in 14 interviews and discuss the artifacts’ elements within an evaluation panel. Our findings show that a distributed ledger application for the regional label ecosystem should have an open and decentralized architecture giving all participants full access to the shared data while still providing security and privacy for sensitive data. Additionally, data capturing should be simple. However, such an application does not add sufficient economic value and is currently of no practical interest in the regional label ecosystem as the expenditure likely exceeds the benefit.
Arvind Upadhyay, Julius Oluwasunkanmi Ayodele, Anil Kumar, Jose Arturo Garza‐Reyes
Purpose This paper aims to explore the challenges and opportunities of blockchain technology adoption from the lens of the technological–organisational–environmental (TOE) framework for operational excellence in the UK automotive industry context. Design/methodology/approach The research methodology of this study follows a systematic review approach, which analyses existing academic published research papers in the top 35 academic journals. There was no specific timeframe established for this study and shortlisting the articles through a set of used keywords. A sample of 71 articles was shortlisted and analysed to provide a discussion on technological and management challenges and opportunities of blockchain adoption from the lens of the TOE framework for operational excellence. Findings The findings of this study present significant theoretical and managerial implications and deep understanding for firms seeking to understand the challenges and opportunities of blockchain adoption for their operational excellence. Research limitations/implications The systematic literature approach was considered for the present study to explore existing academic papers on technological and management challenges and opportunities from the lens of TOE framework for operational excellence, whereas a more specified method meta-analysis can be considered for future research. The study has been explored in the UK automotive industry context, which has been considered as the limitation of generalisation across countries and industries. Originality/value This paper represents the most comprehensive literature study related to the technological and management challenges and opportunities of blockchain from the TOE framework angle for operational excellence.
Kostas Douladiris, Thomas K. Dasaklis, Fran Casino, Christos Douligeris
Reverse logistics (RL) activities of medical equipment play a crucial role in properly managing durable medical devices at the end of their life. However, refurbishing medical equipment is not a straightforward process, as there exist many challenges associated to their proper re-positioning into the market. In this paper the use of blockchain technology is proposed as a viable solution for establishing sound refurbishing channels for medical equipment while considering relevant regulatory, security and operational prerequisites. In particular, we propose a highly robust traceability mechanism for medical equipment refurbishing activities based on blockchain and smart contracts. Our approach offers multiple and disparate stakeholders (device manufacturers, hospitals, refurbishers, retailers etc.) to share critical RL information in a timely, verifiable and secure fashion. The system provides forensics-by-design functionalities and safeguards the chain-of-custody for all the refurbishing processes taking place. A proof-of-concept implementation is provided as well as a discussion of the various benefits of the proposed RL system.
The research aims at analyzing the integration of Waste Management (WM) strategies and Information management in the construction procurement process. The application of Building information modelling (BIM) methodologies for a Most Economically Advantageous Tender could address the digital transition in order to adopt environmentally sustainable practices. Despite the wide regulation regarding waste minimization, an overview of which is provided, AECO is still one of the most polluting industrialized sector. Drivers and barriers to the method, and a literature review are provided: BIM approaches to enable WM practices have been analyzed from the designer and constructor’s point of view, but few studies investigated the role of the Client, in particular the Public Client. The goal of the study was to evaluate the efficiency of Most Economically Advantageous Tender and a BIM methodology to promote WM strategies during the tender phase. Design Build (DB) and Design Bid Build (DBB) procurement models are tested through three case studies of Italian schools' calls for proposals: the BIM model enabled to verify the bids in terms of WM strategies implementation. Blockchain and Smart contract future applications are also investigated in order to ensure transparency of the whole process. The Public Client could trigger a change in the construction sector regarding the integration of WM practices, as a central and active actor of the construction process, through the application of Green Public Procurement and BIM methodologies.
The growing attention to emerging technologies has raised several doubts regarding the sustainability aspects. Among the new technologies, blockchain has laid the foundations for a revolution in the financial field but also in the energy, tourism, medical, industrial and supply chains sectors. Through a systematic literature review, 37 documents were analyzed to describe the sustainable aspects generated using blockchain in supply chains. Therefore, the results achieved provide two levels of analysis. The former highlights the impact of the adoption of blockchain in supply chains based on the three dimensions of sustainability: environmental, economic and social. The latter shows the positive and negative impacts of each form of sustainability. The purpose of the work is to summarize the current state of the art in order to propose a future development agenda based on the need to simulate and define a measurability for each dimension of sustainability. Finally, the study provides a broad overview of practical and managerial implications for entrepreneurs and researchers. On the one hand, the work shows how the use of blockchain improves the profits and reputation of companies. On the other hand, it highlights several research gaps to be investigated and considered by researchers.
Kevin Gordillo Orjuela, Paulo Alonso Gaona-García, Carlos Montenegro
In recent years an effort has been made to improve supply chain management (SCM) and traceability control in different industrial sectors, for example, in agriculture one of the main concerns is about to know where is the product in particular moment and where it will be next. Problem here is, as many other systems, the centralisation of information and trust problems derived from human interaction with transactions in the system. Based on this context of lack of trust, we propose the design and development of a platform using a database based on Blockchain technologies, the platform’s main effort is to propose a solution for agriculture SCM and control over internet taking as study case Colombian agriculture negotiation process.
Blockchain technology is a disruptive technology that changes business and supply chain models. Using distributed software architecture and advanced computing, blockchain can change the way information is exchanged between actors in the chain. Blockchain technology provides a platform for solving the problem of tracking product information in supply chain management. Accordingly, the present study aims to provide a model for evaluating the maturity of blockchain technology in the agricultural supply chain. The present research is applied that has been done in three stages. In the first phase, the dimensions of the blockchain are ranked by agricultural experts using the SWARA method. The research experts are 13 faculty members of the department of agriculture active in the field of technology application. In the second phase, a model is designed to evaluate blockchain maturity using each dimension of blockchain technology and maturity dimensions. In the third phase, the proposed model is tested using data collected by a questionnaire in the supply chain of a company active in the agriculture sector. The research findings show that smart contracts, Internet of Things (IoT), and transaction records are of the highest importance among the blockchain dimensions. Also, the supply chain under study is in a good condition in digital documents. Theoretically, the originality aspect of the research is that it determines the importance of blockchain dimensions in the field of agriculture and from an applied point of view, it introduces the maturity model of blockchain in supply chain management.
Abstract To reduce emissions in the maritime transport sector, the International Maritime Organisation (IMO) follows a global clean shipping strategy. Among the different directives of IMO, currently especially the sulphur emission regulations pose challenges for the shipping industry. Related to this are the established Sulphur Emission Control Areas (SECAs) and the introduced global sulphur cap. To comply with the sulphur restrictions, according to the present technological state of the art, ship-owners have three options for their existing fleet: the installation of emission abatement technologies, the switch to low sulphur fuels, or retrofitting for the usage of alternative fuels. Regardless which option is favoured, most often selected solutions still depend on fossil fuels. The reasons for this can be traced back to the fact that supply of biofuels is not ensured in ports and generally seen as no profitable solution. This paper develops and examines an innovative business model with a special focus on liquefied biogas (LBG). The study bases on collected qualitative and quantitative data, which was used by applying the Business Model Canvas. The results will highlight that the business model bears the potential to promote LBG supply. Next to this, the research will show that blockchain and smart contracts are able to foster the implementation of the business model and optimisation of value chain operations. Lastly, economic advantages were highlighted within a case study that refers to the seaport Karlskrona in Sweden and the RoPax ferries from Stena Line that travel back and forth to Gdynia seaport in Poland.
In this paper, a new digital business model for independent construction logistics consultants, which features the conceptualization of a sociomaterial blockchain solution for integrated information, material and economic flows, is proposed. Theoretically, we offer an understanding of the economic flow, stress the optimization of construction logistics through flow integration, analyse current approaches to understanding blockchain, adopt sociomateriality to envision a suitable blockchain solution, and consider the way blockchain can constitute part of the value proposition of a related digital business model. Methodologically, we systematically reviewed the literature on blockchain-related construction research, and conducted empirical studies on independent logistics consultants in the Swedish context for more than a year. On the one hand, the literature review reveals that core blockchain properties can generate value for construction logistics (e.g. shared ledger structure and reduction of accounting rework) – however, apart from visions and prototypes, there currently exist no use cases, and potential implementational constraints and security issues are limitedly considered. One the other hand, the empirical findings show that independent construction logistics consultants in the sociomaterial Swedish context are suitable candidates for the proposed digital business model. By combining the literature and empirical insights, a permissioned private proof-of-authority blockchain solution integrating the supply chain flows in a generic sociomaterial setting is conceptualized. This solution is then embedded in the value proposition of a digital business model for an independent construction logistics consultant. The proposition includes, among others, improved process management and increased productivity, while the consultants’ competitive advantage through innovation is facilitated. Other business model segments, like key resources, are also updated via the blockchain solution, while some, like channels, are not significantly affected. To not hinder the realization of this digital business model, issues like the lack of blockchain awareness, and the existing power balances within sociomaterial constellations, have to be addressed.
Daeheon Choi, Chune Young Chung, Thou Seyha, Jason Young
From a supply chain perspective, new technologies such as blockchain can improve the efficiency and competitiveness of logistics and increase customer satisfaction. Although blockchain technology has been lauded as a way for firms to build sustainable supply chain networks, the rate of acceptance of this technology remains low. Therefore, this study seeks to identify the factors that discourage firms from merging blockchain with the supply chain. Instead of providing further reasons for adopting blockchain technology, we try to understand what deters firms from adding blockchain to their operations. Following the deductive approach, a confirmatory factor analysis is conducted on pre-test questionnaires to test, improve, and verify the constructs (questions) to measure the hypothesized factors. A theoretical model is proposed based on the hypotheses, and structural equation modeling is applied. The results are estimated using the partial least squares approach and a sample of 83 respondents. Our findings based on our empirical data support most of our hypotheses. We find that various factors impede the adoption of blockchain technologies, including technological barriers, constraints rooted in organizations and the environment, and system-related governmental barriers. In addition, various factors are critical determinants of resistance to blockchain in the technological, organizational, and environmental dimensions.
The building workers sector is one of the most challenging for Human Resources (HR) management. In this work we propose a solution relying on the Blockchain technology and present the design of a Blockchain-Oriented Software system conceived for managing the building workers sector with a focus on workers' safety and guided by sustainable and Agile Methodologies in software design. The proposed approach takes advantage of different features of the Blockchain technology and provides transparency for labour inspectors, grants data integrity and immutability, relies in tamper proof time stamps for any recorded activity, allows the implementation of Smart Contracts where clauses are automatically respected without the need of a trusted control authority, acknowledges the legal requirements in the field, including the possibility of creating the Operational Safety Plans, which construction companies have to provide and finally implements the creation of vacant job positions which workers can find and apply to. In order to achieve these goals we adopt the Blockchain-Oriented Software Engineering (BOSE) methodology to design Blockchain software applications and apply an Agile methodology centered on Blockchain Software development, (called ABCDE) for the design and development of the decentralized application. Such methodology allows to center the software development around the actors of the system in the specific domain, such as Building Workers, Construction Companies, Labour Inspectors and so on. In addition we rely on the software sustainability analysis, based on the five dimensions of sustainability, to evaluate the approach and to avoid mistakes in the system development. We design system elements with specific diagrams and we divided our system in the on-chain and the out-of-chain components. The implementation of the system, done by using Ethereum and the ERC721 standard, allows us to improve some aspect of the design, to know the deployment and usage costs, and to evaluate the effect of the user interface. Finally, we discuss about the effects of our system and its sustainability, and provide a comparison of our system with a similar per aims but centralized system.
Purpose The purpose of this study is to identify and prioritize the factors that can positively influence the implementation of a blockchain-based supply chain via an integrated framework. To the best of the authors' knowledge, no previous study has focused on prioritizing these factors. Design/methodology/approach First, this study conducts a multivocal literature review, and a total of 48 success factors (SFs) are identified and mapped into 11 categories. Second, the identified success factors and their categories are further validated by industry practitioners using a questionnaire survey approach. Finally, this study applies an analytical hierarchy process to prioritize the identified SFs and their categories and to assess their importance for successful blockchain implementation in the supply chain management process. Findings The “Accessibility” category has the highest importance, and the “Overall efficiency” category has the second highest rank. As far as the success factors are concerned, “Trackability” and “Traceability” are considered to be the prime success factors of a blockchain-based supply chain. The taxonomy of the categories and their success factors provide an outline for supply chain organizations to establish a strategy to implement blockchain technology. Practical implications This technology can be practically applied in a sustainable supply chain. Another vital application of this blockchain technology is in banking and finance because of the blockchain's immutable data recording property. Originality/value To the best of the authors' knowledge, there is no previous study focused on building a taxonomic model that allows supply chain organizations to compare this paper's model with existing models and outline the necessary actions to improve supply chain activities. The questionnaire-based survey developed to validate the success factors in real-world practices and the factors' prioritization can help academic researchers and industrial practitioners to set their strategic goals accordingly.