Blockchain is a decentralized and distributed ledger system that records and verifies transactions across a network of computers and ensures transparency, immutability, and trustworthiness. Smart contracts are programs or protocols embedded into the distributed ledgers and are used to automate agreements between parties of a blockchain. Smart contracts are vulnerable to attacks due to their immutable and public nature, thus, it is important to guarantee the correctness of contracts already at design-time in order to avoid catastrophic events and huge loss of money.
Everyday life depends heavily on the supply chain, and its traceability guarantees the quality and safety of the products. Thus, there is a pressing need for an effective and trustworthy solution to enhance logistic traceability. Traditional traceability systems suffer from low tracking efficiency and inconsistent data. However, the developing blockchain technology promises to improve these issues by being transparent, tamper-proof, and decentralised. This article analyses previous research, highlights problems, and investigates logistic traceability options based on blockchain. First, the conventional traceability approach and stakeholder demands are explained, along with the fundamentals of blockchain technology. Next, a thorough evaluation and analysis of the current publications and enterprise applications is conducted. Lastly, difficulties and potential lines of inquiry are explored. Subsequent studies may concentrate on developing focused consensus processes, creating suitable access controls, examining the function of regulators in the supply chain, etc. This analysis demonstrates that although there are still many obstacles to overcome, blockchain offers a lot of promise to solve traceability problems.
Shivangi Viral Thakker, Santosh B. Rane, Vaibhav S. Narwane
Purpose Digital supply chains require nascent technologies like blockchain and Internet of Things (IoT). There is a need to develop a roadmap for the implementation of these technologies, as they require a huge amount of resources and infrastructure. The purpose of this paper is to analyze the challenges of implementing blockchain-IoT integrated architecture in the green supply chain and develop strategies for the same. Design/methodology/approach After a thorough literature survey of Scopus-indexed journals and books, 37 barriers were identified, which were then brought down to 15 barriers after confirming with industry and academic experts using the Delphi method. Using the total interpretive structural modeling (TISM) method and cross-impact matrix multiplication applied to classification (MICMAC) analysis, the barriers were modeled, and finally, strategies were formulated using a concept map to handle the barriers in the blockchain-IoT integrated architecture for a green supply chain. Findings This paper presents the research on barriers that can be considered for incorporating blockchain and IoT in the green supply chain. It was found from the TISM model that environmental concerns are Level-1 barriers and need to be addressed by developing appropriate technology and allocating funds for the same. An integrated ecosystem with blockchain and IoT is developed. Research limitations/implications The focus of this study was on the challenges of blockchain and IoT; hence, it is required to extend the research and find challenges for different industries and also analyze the criteria using other multi-criteria decision-making (MCDM) methods. Further research is required for the integration of blockchain-IoT with supply chain functions. Practical implications The transformation of a traditional supply chain into a green supply chain is possible with the integration of technologies. This research work and the strategies developed are useful to managers and practitioners working on technology implementation. Planning resources and addressing key barriers is possible with the concept maps and architecture developed. Social implications Green supply chain management (SCM) is gaining importance in industry as well as the academic sector due to government Policies and norms worldwide for reducing emissions and encouraging environment-friendly production systems. Incorporating blockchain and IoT in a green supply chain will further digitize and increase transparency in supply chains. Originality/value We have done a categorization of all barriers based on the expert survey by academicians and industry experts from industries in India. The concept map helps in identifying possible solutions for the challenges and initiatives to be taken for the smooth integration of technologies in the green supply chain.
This research introduces a decentralized supply chain optimization model that incorporates blockchain technology. The model, implemented through an optimized iterative method, integrates ordering, holding, and purchasing costs to offer a comprehensive view of total costs for both retailers and suppliers. The model's uniqueness and optimality are demonstrated through theoretical analysis, highlighting the optimal ordering interval as the sole solution to the derived equation. Employing an algorithmic methodology, optimal replenishment schedules are efficiently calculated using Wolfram Mathematica 13.0. A numerical example and sensitivity analysis illustrate the impact of key parameters on replenishment cycles, order quantity, and costs, encompassing wholesale prices, demand uncertainty, and holding/ordering costs. Managerial insights derived from sensitivity analysis guide decision-makers in optimizing supply chain management, emphasizing strategies such as wholesaler price balance and strategic blockchain information management. In essence, this research contributes to an enhanced understanding of decentralized supply chain models with blockchain, providing a systematic decisionmaking optimization approach for increased efficiency and resilience.
Anum Nawaz, Liguan Wang, Muhammad Irfan, Tomi Westerlund
Drug supply chains have been facing severe issues as counterfeit product cases are increasing exponentially. A supply chain management system that ensures transparency, reliability, and provenance of drugs would increase the trustworthiness of the whole industry. One solution to all three needs is utilizing blockchain-based distributed ledger technologies (DLTs). Even though DLTs are emerging as an ideal infrastructure for multi-stakeholder supply chain applications, they still need to be more mature to address the specific challenges specific to each use case. In this article, we propose a distributed blockchain-based framework, PHTrack, leveraging hyperledger sawtooth as a drug supply chain traceability system. Hyperledger sawtooth addresses scalability issues by offering a robust foundation to support large-scale drug supply chain operations in a modular way for it’s each participating stakeholder. Furthermore, it simplifies the integration process with existing systems, even those employing different technologies, thereby facilitating a smoother transition to DLTs. The design of PHTrack is oriented towards minimizing resource consumption throughout the process, particularly within hyperledger sawtooth nodes. Additionally, it incorporates quantum secure off-chain communication for peer-to-peer (P2P) communication. A set of experiments was conducted to validate the proposed framework. Experiments have shown that PHTrack provides reliable and comprehensive drug provenance as well as real-time drug supply chain tracking.
In the traditional fresh supply chain, farmers commonly conceal the true quality information of their products in order to achieve better sales. This article focuses on the use of blockchain technology to address the issue of false freshness reporting in a two-level fresh supply chain consisting of a rural cooperative and a supermarket. Taking into account the dual losses of quality and quantity in the process of agricultural products transportation, the impacts of the product freshness and the blockchain investment level on random market demand are quantified in this paper. And game models for centralized and decentralized decision-making before and after investing in blockchain technology are proposed. By comparing the supply chain optimal decisions and performances under different scenarios, a revenue-cost sharing contract is designed to coordinate the decentralized decision-making. Simulation results show that the application of the blockchain technology can further consolidate the superiority of the centralized decision-making. However, there is a certain threshold for the application of the blockchain technology in decentralized decision-making. When the unit cost of blockchain exceeds the threshold, the rural cooperative will abandon its cooperation with the supermarket due to reduced profits. And the combined contract also has a threshold boundary for its coordinating effect on decentralized decision-making.
Shujian Ma, Jiarong Cai, Gang Wang, Xiangliang Ge · 6 authors
The application of blockchain has become a trend in the development of supply chain finance. Aiming to bridge the gap in the existing literature, this paper investigates a supply chain finance system based on blockchain technology which contains a manufacturer, a retailer and a financial institution and incorporates blockchain costs into the model. Firstly, this paper establishes a supply chain finance model based on blockchain technology and it presents a comparison with the process employed under the traditional model. Secondly, this paper establishes the revenue mathematical model of supply chain finance based on blockchain technology. Thirdly, the optimal decisions of each participant under centralized and decentralized decision-making are proved and obtained, respectively, and the influencing factors of the optimal decisions are analyzed. Finally, the conclusions are verified via simulations. This study finds that, when blockchain is used, the benefits of each participant in the chain are increased. In addition, centralized decision-making, which is more optimal in the traditional model, is also enhanced under blockchain. This paper demonstrates the superiority of blockchain-enabled supply chain finance in terms of model and revenue. This provides some suggestions for companies in the supply chain with regard to solving the problem of financing difficulties.
Marjan Alirezaie, William Hoffman, Paria Zabihi, Hossein Rahnama · 5 authors
The complexities arising from disparate data sources, conflicting contracts, residency requirements, and the demand for multiple AI models in trade finance supply chains have hindered small and medium-sized enterprises (SMEs) with limited resources from harnessing the benefits of artificial intelligence (AI) capabilities, which could otherwise enhance their business efficiency and predictability. This paper introduces a decentralized AI orchestration framework that prioritizes transparency and explainability, offering valuable insights to funders, such as banks, and aiding them in overcoming the challenges associated with assessing SMEs’ financial credibility. By utilizing an orchestration technique involving symbolic reasoners, language models, and data-driven predictive tools, the framework empowers funders to make more informed decisions regarding cash flow prediction, finance rate optimization, and ecosystem risk assessment, ultimately facilitating improved access to pre-shipment trade finance for SMEs and enhancing overall supply chain operations.
Abstract As an emerging technology, blockchain has recently gained attention in both academic and economic fields, but its adoption is not yet widespread in the banking sector in Taiwan. As academics have paid scant attention to this topic, this study determines the critical factors affecting blockchain adoption from the organizational perspective in the banking industry. We propose hybrid methods to fill the gap in the literature. First, we apply the technology-organization-environment framework as the basis and combine relevant factors as a framework to identify the relevant evaluation factors. Second, we propose a hybrid method that integrates the decision-making trial and evaluation laboratory (DEMATEL) with the evaluation based on distance from average solution (EDAS) approach and employs DEMATEL to measure the importance of the factors and alternatives to blockchain as ranked by the EDAS method. According to the ranking results, we identify the best preference among alternatives to blockchain. The results suggest that organizational and technological aspects are the main considerations to enhance and promote the effectiveness of blockchain adoption. This study suggests valuable strategies for stimulating blockchain adoption in the banking sector in Taiwan.
A supply chain is a logistic system that converts raw materials into finished products and distributes them to customers. The system usually consists of material producers, factories, organisations, sellers, consumers as well as transportation. Data and information such as manufacturing data and shipment data also form an important part of the supply chain system and is usually maintained centrally by one entity. Centralisation can cause several problems in supply chain system management, such as single point of failure, corruption, and data tampering. Blockchain has for the past years emerged as a decentralised technology that can help solve the problem of centralisation. The research, therefore, explores the feasibility of using blockchain technology in the supply chain system focusing on coffee produce and shipment. We analyse the suitability of blockchain to the supply chain. We then designed and implemented a smart contract using Solidity, which runs on an Ethereum-based blockchain to show that supply chain data can be traced and blockchain can be used for supply chain purposes.
Maximiliano Jeanneret Medina, Cédric Baudet, Jean‐Fabrice Lebraty
This paper aims to explore how does the introduction of blockchain technologies impact trust in existing supply chain relationships. To do so, we conducted a multiple case study through the lens of agency theory. Three Swiss companies which are carrying out blockchain projects for their supply chain have been analyzed in semi-structured interviews and document analysis. Two significant findings of the impact on principal-agent relationships are stressed. Firstly, blockchain technologies can reduce the asymmetry of information, increase the control of agents, and consequently minimize the trust in the principal towards the agents. Secondly and paradoxically, the control mechanisms inherent in these technologies can decrease the agent's trust in the principal. Thus, questioning trust is necessary, both as an antecedent and an unexpected consequence when adopting blockchain technologies. Finally, we provide guidelines for initiating the adoption of blockchain technologies in supply chains.
The floral supply chain is one of the most delicate logistics networks in existence, requiring intensive monitoring of temperature, humidity, and product conditions to ensure the quality of flowers. However, the traditional centralized supply chain involves exchanging information back and forth, and therefore wastes time, money, and resources. In addition, centralized data control without security verification exposes logistics information to the risk of hacking, information tampering, and counterfeiting. Blockchain technology offers decentralization, immutability, and encryption security. Furthermore, application of Internet of Things (IoT) technology has made it easier to monitor goods and the distribution process. Combining the above two new technologies can effectively improve the transparency and traceability of the floral supply chain and make transactions more secure through the digital signature verification process. In this research, we propose a smart contract for the floral supply chain. Through contract compilation, the proposed contract defines the delivery process status, delivery specifications, and other conditions in the shipping process so that the status of the goods is updated on the blockchain, giving the supply chain higher traceability. This study also defines the process for and conditions of money transactions between buyers and sellers using such smart contracts, thereby automating the transaction, improving its efficiency, and saving on labor costs and paper waste. This research also compares the proposed smart contract to traditional transaction methods. The pros and cons are thoroughly discussed, offering significant benefit to decision makers.
Abstract Artificial intelligence and blockchain technology have become indispensable in the era of the digital economy, particularly in the field of financial financing. However, when it comes to supply chain finance (SCF), existing models primarily focus on risk identification and credit evaluation, neglecting the critical aspects of trust transfer continuity and reliability within the chain. To address this issue, this paper proposes a blockchain-based transitive trust model for SCF, which ensures seamless trust transfer from core enterprises to bottom suppliers during financing enterprise credit evaluation. The model utilizes multi-layer metrics to calculate the comprehensive trust value of underlying suppliers, serving as the basis for credit delivery. Additionally, the model stores transitive signature receivable warrants on the blockchain and utilizes splittable delivery of warrants to underlying suppliers. The model’s rationality and correctness are verified through experimental analysis, with results demonstrating that the transitive trust model enhances Small and Medium-Sized Enterprises’ (SMEs) trust at the bottom of the supply chain, thus alleviating financing difficulties for SMEs.
This study uses JD.com as a case study to explore blockchain technology’s application in supply chain management. By leveraging distributed ledgers, consensus mechanisms, smart contracts, and cryptographic techniques, blockchain effectively tackles problems related to privacy protection, information traceability, and authenticity within traditional supply chains. This paper examines JD’s blockchain framework and its impact on various supply chain functions, revealing that blockchain technology has markedly improved procurement efficiency, reduced costs, enhanced customer trust and sales revenue, optimized logistics operations, and streamlined management processes. Through its JD Chain platform, JD.com has boosted operational performance and economic value and offered valuable insights for smaller enterprises. Given the technical and financial constraints faced by smaller firms, it is recommended that they engage in open source blockchain communities hosted by larger organizations to lower information acquisition costs and share resources. This paper provides practical advice for enterprises considering the integration of blockchain technology into their supply chain management.
Abstract Since the birth of Bitcoin, blockchain technology has been widely used in many fields, such as finance, supply chain management, smart contracts, etc.and has been highly valued for its decentralized and tamper-proof characteristics. With the expansion of application scenarios, blockchain faces inefficient data processing challenges, particularly in event sequencing and processing. Developing efficient event sequencing algorithms is a research priority to enhance the performance of blockchain systems. This study addresses the efficiency problem in blockchain event sequencing by introducing a high-dimensional multi-objective differential evolution strategy to improve blockchain technology’s performance in various fields. This paper uses the NSGA-III-WA algorithm to efficiently sort blockchain events by combining differential evolution strategies. Compared to the traditional sorting algorithm, this algorithm reduces latency by 30% and improves memory usage by about 20% when dealing with events of the same size, ensuring sorting accuracy. By optimizing the weight vector adjustment strategy, the convergence speed and distribution uniformity of the algorithm and the solution can be optimized. In this paper, the algorithm can effectively improve the efficiency and performance of blockchain event processing, which is critical in optimizing blockchain systems.
Patrick Dudczyk, Julie K. Dunston, Garth V. Crosby
Supply chain management depends on a complex, interconnected network of suppliers, manufacturers, transportation companies, distributors and customers with the goal of predicting, monitoring and controlling operations and processes. Globalization has introduced fierce competition, forcing supply chains to innovate and enhance their performance and capabilities. Centralized management systems are prone to attacks, disruptions and malfunctions. A potential solution to these known issues is the adoption of blockchain technology. The blockchain offers an immutable ledger that allows for a trustless, decentralized system without reliance on third parties. It can provide new features, improve performance, advance network visibility and strengthen the four flows of a supply chain. To survive and compete on the global stage, supply chains must adopt emergent technologies to develop new business strategies. In this paper, a comprehensive survey of academic literature and research works relating to blockchain platforms for global supply chain management is presented. This survey will provide an overview of blockchain technology for supply chain management, summarize industry applications, highlight persistent challenges, and identify research opportunities to enhance the current state of research in the past six years. The contribution of this survey is to also provide a list of available blockchain solutions for global supply chain management and to elaborate on future advancements in the field. New solutions will be proposed and explained.
The research proposes a new method for Viable Supply Chain Network Design (VSCND) that incorporates Open Innovation (OI) and Blockchain Technology (BCT). A robust stochastic optimization and Conditional Value at Risk (CVaR) in the cost function is utilized to develop the model. This model's objective function incorporates the expected value, maximum cost, and CVaR cost. The OI and BCT platforms are suggested for an antifragile policy against disruption. In addition, CO 2 emissions and energy consumption are proposed as sustainability requirements. Eventually, minimum demand satisfaction and resilience facilities by incorporating capacity based on specific scenarios are added to the model for an agile strategy. This research entails several parties, including vendors supplying the primary components and manufacturers creating products based on customer preferences. OI and BCT platforms aim to receive demand based on customer specifications and facilitate rapid transactions between components. Risk-averse decision-makers utilize a polyhedral Data-Driven Robust Optimization (DDRO) approach to manage uncertainty and flexible sets. Incorporating OI and BCT as antifragility instruments resulted in a 0.2% cost reduction for VSCNDOIBCT compared to when OI and BCT were not considered. This research suggests that integrating OI and BCT positively affects SC performance overall. The decreasing rate, DDRO coefficient, agility rate, demand variation, and problem size were subjected to a sensitivity analysis.
In the face of numerous challenges in supply chain management, new technologies are being implemented to overcome obstacles and improve overall performance. Among these technologies, blockchain, a part of the distributed ledger family, offers several advantages when integrated with ERP systems, such as transparency, traceability, and data security. However, blockchain remains a novel, complex, and costly technology. The purpose of this paper is to guide decision-makers in determining whether integrating blockchain technology with ERP systems is appropriate during the pre-implementation phase. This paper focuses on the literature reviews, theories, and expert opinions to achieve its objectives. It first provides an overview of blockchain technology, then discusses its potential benefits to the supply chain, and finally proposes a framework to assist decision-makers in determining whether blockchain meets the needs of their consortium and whether this integration aligns with available resources. The results highlight the complexity of blockchain, the importance of detailed and in-depth research in deciding whether to integrate blockchain technology into ERP systems, and future research prospects. The findings of this article also present the critical decisions to be made prior to the implementation of blockchain, in the event that decision-makers choose to proceed with blockchain integration. The findings of this article augment the existing literature and can be applied in real-world contexts by stakeholders involved in blockchain integration projects with ERP systems.
Fei Wu, Thomas Thiery, Stefanos Leonardos, Carmine Ventre
The Ethereum block-building process has changed significantly since the emergence of Proposer-Builder Separation. Validators access blocks through a marketplace, where block builders bid for the right to construct the block and earn MEV (Maximal Extractable Value) rewards in an on-chain competition, known as the MEV-boost auction. While more than 90% of blocks are currently built via MEV-Boost, trade-offs between builders' strategic behaviors and auction design remain poorly understood. In this paper we address this gap. We introduce a game-theoretic model for MEV-Boost auctions and use simulations to study different builders' bidding strategies observed in practice. We study various strategic interactions and auction setups and evaluate how the interplay between critical elements such as access to MEV opportunities and improved connectivity to relays impact bidding performance. Our results demonstrate the importance of latency on the effectiveness of builders' strategies and the overall auction outcome from the proposer's perspective.
A decentralised distributed ledger system called Blockchain Technology (BCT) enables safe, open, and impenetrable transactions without the need for a central authority. The technology was initially created for the Bitcoin cryptocurrency, but it has subsequently been applied to other areas such as voting procedures, supply chain management, and digital identity management. The technology is increasingly becoming accepted in the academic setting for a variety of purposes, including the creation and storage of academic records. There are numerous platforms accessible for this usage, though. When numerous decision-makers are engaged in the selection process, picking an appropriate platform can be a contentious affair. For decision makers, selecting among a wide range of acceptable options might be difficult. It is possible to overcome these difficulties by using Multi-criteria Decision-Making (MCDM) techniques. When there are numerous elements to take into account, one technique for making judgments is MCDM. The process entails assessing multiple options according to pre-established standards in order to identify the optimal selection. In essence, when there are several variables to consider, MCDM assists in selecting the option. The Fuzzy Analytic Hierarchy Process (FAHP) is one of the various MCDMs which this paper uses to choose the best BCT platform for academic records based on three choices (IBM, Ethereum, and Hyperledger Fabric) and five factors (cost, degree of acceptance, simplicity of use, data security, and level of customization). The analysis's findings indicate that data security is the most crucial factor, with a weight of 0.645, and that IBM is the best BCT platform, with a value of 0.448. By comparing the FAHP results to those of AHP, IBM's suitability as a platform was confirmed.
The flattening of sales channels makes it easy for an upstream core parts supplier in an assembly supply chain to invade the downstream market. This also introduces several challenges for the efficient performance and management of the supply chain system. Whereas restrictive factors such as supplier confidentiality agreements have limited the product encroachment by the suppliers, the adoption of blockchain technology for improving information diaphaneity and efficiency of the supply chain can potentially encourage market intrusion by the suppliers. Therefore, whether blockchain technology can be successfully accepted and implemented by both the suppliers and incumbent manufacturers, and how this can be achieved, are issues that need urgent attention in the case of supply chain systems. In this paper, we establish a two-stage assembly supply chain consisting of an incumbent manufacturer and a core component supplier that invades the downstream market with imitation products, in order to analyze the impact of supplier encroachment and the application of blockchain technology on the assembly system. The results show that it is more beneficial to play the dual role of core supplier and product manufacturer than to only be a core supplier. Similarly, when the cost of implementing blockchain technology is lower than a specific threshold, the implementation of blockchain is always beneficial for the encroaching supplier, whereas the manufacturer does not always benefit. The blockchain not only improves the selling price of the core component produced by the supplier, but also improves the quality of the core component and increases the total market demand. Finally, in view of the potential benefits and conflicts that may arise from the implementation of the blockchain, we design corresponding ex-ante, ex-post and hybrid coordination mechanisms to achieve a win-win situation in this competitive system. Our modeling work and results provide useful managerial insights regarding the encroachment by core component suppliers and the implementation of blockchain technology in assembly supply chains.
This study comprises a systematic literature review that offers a thorough analysis of the present state-of-the-art knowledge regarding the adoption and application of blockchain technology within the context of supply chain management. Based on an extensive review of 133 articles from highly-regarded journals, we developed a framework where we highlight the integration of the transition from blockchain technology adoption to its application. This transition process is explained by two theories: the Technology Acceptance Model and the Diffusion of Innovation Theory. In the adoption phase, we identified nine internal drivers and seven external drivers, together with comprehensive barriers. Our framework also integrates and examines the blockchain technology application stage, focusing not only the current development of benefits of blockchain technology implementation but also the challenges that impede the successful implementation of blockchain technology in supply chain management. The future development prospects are also highlighted which include standardization, platform development, regulation system development, cost reduction, and talent cultivation. These future developments were critical yet were missing in the current academic literature. By providing an in-depth analysis of these challenges, our study can assist supply chain practitioners in making informed decisions about blockchain-enabled supply chain management initiatives.