Nowadays, creating a blockchain-based system for supply chain tracing is a complex task. This paper defines a model, a graphical domain specific language, and a set of tools aimed at helping supply chain domain experts to create blockchain based tracing systems for their supply chains. Starting from a graphical representation of the supply chain, the solidity smart contracts implementing the related tracing system are automatically generated by our framework. Small interventions of programmers are required to customize and finalize such smart contracts. A set of web based interfaces to interact with such smart contracts are also automatically generated. We are confident that our results will increase blockchain usage for supply chain traceability thanks to the automatic process of smart contract generation.
In recent years, the importance of supply chain management has been attracting attention. An increasing number of companies are adopting Vendor Managed Inventory (VMI), one of the effective supply chain management methods. VMI is built on the cloud and has problems such as a lack of data transparency and traceability and a single point of failure due to the cloud. In addition, to efficiently deliver VMI, vendors need experience and know-how in demand forecasting, and inexperienced vendors cannot forecast demand adequately. This study proposes a new configuration of blockchain-based VMI using smart contracts that perform statistical processing to aid in demand forecasting. Including a demand forecasting smart contract in the VMI configuration can add accuracy and reliability to the demand forecasting results of inexperienced VMI managers. In this study, we employ ABC analysis as one of the statistical processes that help in demand forecasting and show its feasibility by implementing and evaluating it using a smart contract.
Purpose This paper explores the effectiveness of using blockchain technology to solve financial constraints faced by small- and medium-sized suppliers in a capital-constrained supply chain. Design/methodology/approach To characterize the impact of blockchain on credit period and enterprise credit level, the study formulates a newsvendor model to analyze a supply chain in which a financially constrained supplier sells products to a financially sound manufacturer, subject to uncertain demand. The study investigates three repayment methods: the benchmark case without blockchain and two blockchain-enabled cases with the hybrid repayment mode and single repayment mode (SRM), respectively. The study derives and compares the equilibria under each repayment method to characterize their impact. Findings When the bank interest rate is low and the carbon cap is also low, choosing to implement blockchain technology leads to higher profitability for the manufacturer than not utilizing it. Within the framework of blockchain technology, when comparing the two repayment models, the manufacturer exhibits a preference for SRM. Furthermore, under specific conditions of the bank interest rate, blockchain technology can effectively facilitate consensus among supply chain members in terms of channel selection. Practical implications The results derived in this paper provide novel managerial implications to the capital-constrained members in terms of pricing decisions and order quantity under demand uncertainty considering blockchain technology, which transfers the creditor's rights to the bank and shortens the collection time. In addition, blockchain technology enables efficient and intelligent collaborative development of supply chains, which can reduce carbon emissions during the transportation of goods. Originality/value Few studies incorporate blockchain technology into supply chain finance, and this paper considers the credit period and capital's time value for a capital-constrained supplier facing the adoption of blockchain technology within a stochastic demand environment.
This study applies Stackelberg game theory to analyze and compare optimal operational strategies in four supply chain finance scenarios: traditional trade financing (TI), trade financing through the blockchain platform (BI), traditional external financing (TE), and external financing through the blockchain platform (BE). The main findings are as follows: First, the adoption of the blockchain platform reduces the interest rate threshold, making external financing more advantageous for retailers with higher capital constraint. Further, financing through the blockchain platform leads to higher wholesale prices, retail prices, and order quantities compared to traditional financing scenarios. Second, internal trade financing and the use of blockchain technology are preferred over external bank financing. However, conducting external bank financing through the blockchain platform yields greater profit growth for manufacturers and retailers. Accessing the blockchain platform is the optimal strategy for retailers and banks, leading to a favorable “multi-win” situation when the manufacturer’s platform fees are reasonable. Third, the manufacturer’s risk guarantee ratio plays a crucial role in determining the choice of financing mode, particularly when the retailer faces the risk of debt default. This study contributes to the literature by quantifying the impacts of blockchain technology deployment for three aspects that have been overlooked in previous studies: the set-up cost and access fee of the blockchain platform, the service level provided by the platform, and the demand increase resulting from blockchain technology adoption.
Muhammad Imran Sarwar, Kashif Nisar, Imran Khan, Danish Shehzad
A blockchain is a distributed ledger (DL) that records and tracks of transactions on a P2P network. It was originally designed for cryptocurrencies, but it is now used in healthcare, supply chain management, finance, and many more fields due to its security and trustworthiness. Trust and security are critical factors in any business, and the B2B model is no exception. In businesses, trust becomes more critical when the stakes are higher and the relationships are more complex. Centuries-old Double-Entry Accounting (DEA) is still used as an underlying accounting practice, and its reliability and efficiency are beyond question. But a critical review of DEA reveals that it lacks support for B2B transactions, as the two parties maintain their accounting books without cross-checks and verifications that may lead to an implausible situation. Triple-Entry Accounting (TEA) is an emerging accounting practice introduced in the recent past to overcome the limitations of DEA. It only applies if an outside person or business is involved in a transaction and is not meant to record any internal business transactions. Recording transactions on a blockchain and entering the third transaction via TEA are conceptually the same. The potential of blockchain-based TEA can address the challenges of the B2B business model and overcome some specific limitations of DEA. This study aims to survey the current state of the adaptation of blockchains and TEA in B2B transactions. The methodology used in this study can be classified as exploratory qualitative research and is based on the latest literature on the topics. The findings of this study would deepen our understanding of blockchains and TEA for B2B transactions as they highlight new opportunities and challenges.
Abstract Supply chain management has become increasingly complex, leading to information loss and delayed transmission, exacerbating the bullwhip effect. Furthermore, the need for more reliable information storage, traceability, and accountability has slowed supply chain management. In this context, blockchain technology (BCT) solves the bullwhip effect problem, as it supports distributed networking, information synchronization among nodes, digital encryption, traceable information, and unchangeable block content. This paper proposes using public blockchain to solve the bullwhip effect problem in the supply chain (SC), which has yet to be discussed in published academic research papers. To this end, a framework has been developed to determine the readiness of a supply chain for blockchain adoption. This framework includes a checklist to evaluate the motivation, timing, and appropriate platform for adopting blockchain. The framework has been validated using a case study of personal computer devices, which were affected by the Covid-19 pandemic and resulted in semiconductors supply chain disruption. The study involved polling four executives The study involved polling four executives (of large organizations in Egypt and some Middle Eastern countries) representing different stages in the supply chain, they are retail, distribution, manufacturing, and supply. The results showed that while the executives recognized the benefits of adopting blockchain, they were still determining if it was the right time for adoption and did not see the technology ready for their supply chains. Finally, some public blockchain platforms were introduced to help businesses choose the most suitable platform for adoption.
Purpose The purpose of this study is to propose a decentralized multi-party cross-trading scheme based on a certificate transaction mechanism for the transaction of excess consumption certificates (ECCs) of renewable energy. The aim is to address the problems associated with the existing centralized transaction mode and to promote the development of the green electricity industry. Design/methodology/approach The proposed scheme involves calculating the quotation difference for the same type of certificate transaction based on the quotations of all users of both buyers and sellers. The transaction volume is then determined based on the order of quotation difference from large to small, and the total interests of cooperation are calculated. The nucleolus method is adopted to allocate the total interests to each member of the alliance and calculate the final transaction price. The blockchain technology is used for the transaction to achieve accurate traceability and efficient supervision, and a corresponding smart contract is designed and simulated in the Ethereum consortium chain. Findings The results of the simulation show the rationality and effectiveness of the proposed scheme. The decentralized multi-party cross-trading scheme can overcome the problems associated with the existing centralized transaction mode, such as low transaction efficiency, difficulty in obtaining the optimal transaction strategy and efficient supervision. The proposed scheme can promote the development of the green electricity industry by stimulating users' demand potential for green electricity. Originality/value The proposed scheme is original in its use of a certificate transaction mechanism to facilitate the trading of ECCs of renewable energy. The scheme adopts a decentralized multi-party cross-trading approach that overcomes the problems associated with the existing centralized transaction mode. The use of the nucleolus method for the allocation of total interests to each member of the alliance is also original. Finally, the use of blockchain technology for accurate traceability and efficient supervision of the transaction is an original contribution to the field.
Traditional supply chain management faces challenges such as low level of information sharing and lack of transparency. Due to the features such as tamper-proof, reliability and traceability, the blockchain technology enhances the trust among stakeholders and enables transparent transactions and open collaboration, which can reduce the risk of supply chain disruptions. Accordingly, blockchain technology-based supply chain management has attracted more attention from academics and practitioners. However, existing review studies mainly focus on different industries or topics and lack a more comprehensive analysis. Therefore, this paper presents a systematic review integrating bibliometric analysis with theme analysis to understand the current research state in BT-SCM and discuss its future research trends. On the one hand, VOSviewer is used to conduct bibliometric analysis to explore the influences of existing studies from six aspects: publication year, author, country, keyword, journal, and article citation. On the other hand, the functional application of BT-SCM is discussed from logistics traceability, supply chain finance, supply chain collaboration, sustainable management and risk management to determine the research status, and the enablers and barriers of blockchain application in SCM are summarised to facilitate practitioners to adopt BT, and finally the potential research directions are proposed for scholars in this field.
Lin Chen, Lei Xu, Zhimin Gao, Ahmed Sunny · 6 authors
Recent advances in blockchain research have been made in two important directions. One is refined resilience analysis utilizing game theory to study the consequences of selfish behavior of users (miners), and the other is the extension from a linear (chain) structure to a non-linear (graphical) structure for performance improvements, such as IOTA and Graphcoin. The first question that comes to mind is what improvements a blockchain system would see by leveraging these new advances. In this article, we consider three major properties for a blockchain system: α-partial verification, scalability, and finality-duration. We establish a formal framework and prove that no blockchain system can achieve α-partial verification for any fixed constant α, high scalability, and low finality-duration simultaneously. We observe that classical blockchain systems like Bitcoin achieve full verification (α =1) and low finality-duration, Ethereum 2.0 Sharding achieves low finality-duration and high scalability. We are interested in whether it is possible to partially satisfy the three properties.
The robustness of critical infrastructure systems is contingent upon the integrity and transparency of their software supply chains. A Software Bill of Materials (SBOM) is pivotal in this regard, offering an exhaustive inventory of components and dependencies crucial to software development. However, prevalent challenges in SBOM sharing, such as data tampering risks and vendors' reluctance to fully disclose sensitive information, significantly hinder its effective implementation. These challenges pose a notable threat to the security of critical infrastructure and systems where transparency and trust are paramount, underscoring the need for a more secure and flexible mechanism for SBOM sharing. To bridge the gap, this study introduces a blockchain-empowered architecture for SBOM sharing, leveraging verifiable credentials to allow for selective disclosure. This strategy not only heightens security but also offers flexibility. Furthermore, this paper broadens the remit of SBOM to encompass AI systems, thereby coining the term AI Bill of Materials (AIBOM). The advent of AI and its application in critical infrastructure necessitates a nuanced understanding of AI software components, including their origins and interdependencies. The evaluation of our solution indicates the feasibility and flexibility of the proposed SBOM sharing mechanism, positing a solution for safeguarding (AI) software supply chains, which is essential for the resilience and reliability of modern critical infrastructure systems.
This paper presents a general-purpose approach for the drug supply chain management, by proposing a DLT-based methodology to facilitate and make more efficient the development of such applications. For specific domains, such as drug management and traceability, a system based on Django Python framework, on Ethereum blockchain, and on web3.py library has been developed that can be customized for most real supply chains, automatically generating the specific applications (database schema, smart contracts, apps). A case study about a simple drug traceability system for a producer to hospital wards is described, to show how this approach works.
The growing demand for fresh products presents a formidable challenge for managers to design a supply chain that is both cost-effective and efficient while maintaining the freshness of the products. This article examines the use of blockchain technology as a solution for enhancing resource sharing and improving the efficiency and sustainability of fresh product supply chains. In particular, we propose a smart contract that deals with the intricacies of the facility location-routing optimization problem, taking into account both resource sharing and product freshness requirements. To tackle this problem, we propose a hybrid solution approach that integrates a greedy clustering algorithm and the YALMIP toolbox. Our computational experiments validate the effectiveness of the proposed model and the feasibility of the presented solution method. Our research findings reveal the potential of blockchain technology in the fresh product industry, underscoring its significance in the development of sustainable and efficient supply chains. Furthermore, the proposed model and adopted solution method contribute to the advancement of the fresh product supply chain and provide practical suggestions for managers and policymakers.