Blockchain is an emerging technology in logistics and supply chain management. However, its adoption is still in a doldrum with limited success. This study explores container shipping service providersâ (CSSPs) current adoption status and perceived barriers in integrating blockchain applications before providing adoption recommendations. A qualitative analysis was conducted on thirty-two interviews with experts holding managing positions from container terminal operators, shipping companies, and freight forwarders. Thematic analysis was employed to extract and aggregate information from the qualitative database. This study revealed the difference between CSSPsâ perceptions of blockchain adoption barriers and, accordingly, their adopting approaches. A challenging implementing process for the current blockchain applications in container shipping was depicted with ten barriers and twenty-nine connections. Industry experts provided six recommendations for successful blockchain adoption to address the complicated situation. This paper deepens the knowledge about blockchain in supply chains, especially maritime logistics operations. It sheds light on the complexity of perceived adoption barriers, their effect on CSSPsâ approaches to blockchain applications, and potential digitalization policies to be taken.
Decentralized, transparent, immutability, irreversible, autonomy, open source, anonymity, ownership and uniqueness, source, contract automation are at the forefront of the features that allow blockchain technology to be accepted within the sectors. Thanks to these features, it has an important potential in terms of applicability, as well as in supply chain management, as in many other fields. In this study, the compatibility and impact level of the features of blockchain technology with the sustainability of supply chain management are investigated. Within the scope of supply chain management, effective information sharing, integration between processes, trustworthy, systematic data management, auditability, transparency, strong relationship between stakeholders, high efficiency, quick answer, ability to increase sustainability, transition to digitization, uncertain legal status, new technology, integration compatibility with other technologies, optimizing time parameters are evaluated. In the results obtained with the Grey Relational Analysis-based DEMATEL method, effective information sharing, integration between processes, systematic data management, quick answer, uncertain legal status, new technology, and integration compatibility with other technologies are included in the group affecting other criteria. Within the scope of the study, the characteristic features of blockchain technology for supply chain management are interpreted with relationship map and graph diagram. The study provides both theoretical and practical contributions by drawing attention to the compatibility of the blockchain in supply chains, and guides the employees in the supply chain line on how they can best guide their companies and on which parameters they can gain by enabling them to adopt blockchain technology. With blockchain technology, it offers the opportunity to achieve higher efficiency with less time, less cost and faster response, which can realize its sustainability mission, which includes each of the economic, social and environmental dimensions.
This study aims to estimate the costs of integrating RFID and IoT with blockchain for supply chain management. The study is based on the comparison of two simulation scenarios in a cheese supply chain, the as-is case vs. the integration of the following technologies: blockchain, smart contracts, RFID and IoT. Using the Time-Driven Activity-Based Costing method, costs are allocated for six actors: dairy farm, 3PL, wholesaler and three retailers. In addition, the costs of each player are allocated for each supply chain area: logistics, warehouse and order management. The study shows in which areas and for which actors implementing and integrating different technologies is economically suitable. Different procurement policies are modelled for evaluating the cost impacts for each retailer: Economic Order Quantity, Period Order Quantity and Lot for Lot. Moreover, the costs of non-compliant products are assessed in both scenarios. The results show that specific areas such as warehouse management and logistics in the to-be scenario are not economically optimized, however the entire supply chain cost is optimized. The area with positive economic feasibility for all the participants in the supply chain is order management. The combined use of technologies is economically beneficial when the Economic Order Quantity procurement policy is adopted. Finally, in the to-be scenario the non-compliant products management is economically optimized with economic benefits ranging from 8% to 63%.
Abstract Blockchain can help reduce fraud and improve visibility and traceability in supply chains. It has attracted significant investments in commercial practices, especially in the luxury industry. With the recent upgradation of consumption worldwide, consumers care more about the source of information and the value of products. Will tracing products using blockchain technology help competing luxury brands gain consumer trust and cultivate new competitive advantages? This paper proposes a supply chain model comprising two competing manufacturers selling online through retail or direct channels. It also explores whether and how manufacturers implement traceability strategies, including building traceability systems or joining thirdâparty blockchain platforms, considering blockchain's traceability. The results show that, when only one party adopts the traceability strategy, being the first mover to join a thirdâparty blockchain platform with high traceability is always beneficial for improving the profits of all parties. In this scenario, the blockchain platform should adopt as high traceability as possible. When both parties choose to trace the product source, a winâwin strategy for them is to join thirdâparty blockchain platforms with low traceability. In this scenario, the untraced party is motivated to implement a traceability strategy. Furthermore, if consumer perceptions of traceability are high, an untraced manufacturer can obtain higher profits using the traceability strategy. Otherwise, low consumer perception of traceability leads to lowâprice competition, which is harmful to luxury brands.
The use of blockchain technology can ensure that data remains untampered with once it is on the chain. However, it doesnât guarantee the authenticity of data before it enters the chain. In this study, we developed a three-party dynamic evolutionary game model involving core enterprises, small and medium-sized enterprises (SMEs), and financial institutions. Our findings indicate that a blockchain supply chain (BSC) generates more economic benefits than a traditional supply chain (TSC). We then built a dynamic evolutionary game model between core enterprises and SMEs, which revealed that SMEs are influenced by core enterprises and tend to adopt the action strategies of the latter. Additionally, we developed a dynamic evolutionary game model between core enterprises and financial institutions and compared the reward and punishment mechanisms with the synergy payoff mechanism. In the reward and punishment mechanisms, the game is a zero-sum game, where one partyâs gains come at the expense of the other party. This mechanism has certain limitations and must meet specific conditions to improve the willingness of enterprises to share data. On the other hand, the synergy payoff mechanism enhances the authenticity of shared data by increasing the payoff for participants. When core enterprises play games with SMEs, the probability of core enterprises uploading real data and the distribution ratio of synergy payoff show an inverted U-shape. Similarly, core enterprises and financial institutions have comparable results in allocating synergy payoff. To leverage the synergy payoff mechanism, the distribution proportion of players participating in the synergy payoff should be considered fair. Finally, we validated our findings by simulating the models. If we can use blockchain technology to enhance the mutual trust between enterprises and banks, both banks and enterprises can achieve sustainable development.
Blockchain technology, as a revolutionary technology that has emerged in recent years, holds significant potential for application in supply chain operations. This paper provides a systematic review of blockchain-based supply chain case studies. The existing literature primarily focuses on the food, agriculture, and pharmaceutical sectors, highlighting the advantages of blockchain technology in terms of traceability and transparency. However, there is a limited number of studies addressing the improvement of collaboration efficiency in supply chains, particularly within the realm of information technology enterprises. By conducting semi-structured interviews, we present a case study of Lenovo, a leading enterprise utilizing blockchain technology, to elucidate the advantages of using blockchain technology. Subsequently, it proposes a conceptual model for a blockchain-based information collaboration system and discusses the potential applications of blockchain technology in supply chain collaboration. Our study contributes to the existing work on blockchain applications to enhance supply chain collaboration.
Abstract Capital constraints are one of the major challenges for the supplier to invest in activities to enhance environmental and social responsibility (ESR) in production. Responsible buyer direct financing has emerged as an important solution to motivate supplier ESR by pegging the interest rate to the supplier's ESR level. Motivated by real practices, we develop gameâtheoretical models to explore the value of conducting blockchainâassisted due diligence to inspect the borrowing supplier's ESR qualification in a twoâtier supply chain structure where the downstream buyer directly finances the capitalâconstrained supplier. Conventional wisdom tells us that driving greater supplier transparency (e.g., conducting blockchainâassisted due diligence) will motivate the supplier to strengthen environmental and social compliance. However, we identify the necessary and sufficient âbackfiring conditionâ under which the blockchainâassisted due diligence may âbackfireâ by reducing the supplier's ESR efforts. The supplier devotes more ESR efforts if and only if the due diligence cost is sufficiently high. Our result implies that the heavy cost of adopting blockchain technology is not necessarily bad from the responsibility perspective as long as the backfiring condition does not hold. Moreover, we identify the Pareto zone in which conducting blockchainâassisted due diligence could benefit both supply chain members. We extend our model by examining the impact of a shift from profit orientation to social welfare orientation. Our findings provide managerial insights into the implementation of blockchainâassisted due diligence to enhance supplier ESR and improve supply chain membersâ profits.
Amandine Herbe, Zarah Estermann, Valentin Holzwarth, Jan vom Brocke
Distributed Ledger Technology (DLT) refers to multi-party systems that enables saving encrypted data across a peer-to-peer network of nodes, without central authority. While DLT applications have been mainly studied in finance, we conduct empirical research on DLT application in supply chain management, combining theory testing and theory elaborating case research. Applying the Theory of Affordance Actualisation, we identify five DLT affordances: (1) verify product origin and history, (2) exchange data on digital product models, (3) track and trace productsâ logistics, (4) simplify supply chain finance, and (5) automate payments. We identify and evaluate these affordances and also outline how these affordances can be actualised. We contribute to the discourse of DLT value creation and provide practical guidance to assess DLT potential in supply chains. We integrate our findings into the academic discussion on collaboration in viable, intertwined supply networks.
Maria Elena Bruni, Vittorio Capocasale, Marco Fabio Costantino, Stefano Musso · 5 authors
Distributed ledger technologies are transforming existing business models and business relationships. In particular, blockchain allows non-trusting parties to manage a shared database in a decentralized way and improve the transparency, authenticity, and reliability of the exchanged data. Nonetheless, decentralized paradigms are not yet well established, resulting in only a fraction of blockchain-based applications being successful in the long term.In this paper, we present a blockchain-based solution for the electric vehicle supply chain that we designed in the context of the CONCORDIA project of the European Cybersecurity Competence Network. We describe the goals, the value proposition, the main design choices, and the architecture of our system. Moreover, we discuss the electric vehicle supply chain, analyzing the improvements and limitations introduced by our blockchain-based solution. We analyze our solution from the managerial and technical points of view through a lean business methodology for blockchain solutions. In particular, we developed an economic impact assessment to evaluate the potential costs and revenues of the application of blockchain technology in a supply chain context. Although the blockchain system is inspired by the supply chain of a multinational automotive company, it can be applied to any other multi-actor supply chain.
Congying Jin, Taotao Wang, Zhe Wang, Long Shi · 5 authors
In the block space market of the Ethereum blockchain, miners are the producers who can maximize their revenueâa value called Miner Extrac table Value (MEV)âby including, excluding, or reordering transactions in the blocks they produce. Some special users, arbitrage bots, are aware of MEV and may opt to exploit the existence of MEV to seize arbitrage opportunities in Decentralized Finance (DeFi) applications. These bots usually compete for block space with each other via a gas action process in which bots bid up their gas prices. Due to the lack of symmetric market information, bots blindly issue multiple transactions continuously aiming at the same arbitrage opportunity and they gradually increase the gas prices. Such malicious bidding behavior leads to the problems of transaction congestion and high gas fee in the Ethereum network. Based on the Flashbots project, we propose an Ethereum gas auction model using First Price Sealed-Bid Auction (FPSBA). In our model, the bidding bots no longer need to continue raising their gas bids in response to threats from other bots, and our derived optimal FPSBA bidding strategy under the dominant strategy equilibrium can effectively reduce the botsâ bids in gas action. Our simulation results illustrate that our FPSBA can achieve a lower average bidding price for the biding bots compared to the blind continuous bidding strategy dose in the original Ethereum network, thus it can keep the whole gas price level stable.
Over the recent years, blockchain, a digitalization phenomenon, has leveraged its superior features to remodel the relationships of logistics partners. This cutting-edge technology has brought a faster, more transparent, and cost-effective logistics industry. This study, therefore, aims to investigate the behavioral intention to use the blockchain of individuals who work in logistics companies in Ho Chi Minh City (HCMC), Viet Nam, through the Unified Theory of Acceptance and Use of Technology (UTAUT) and its extended factors. Accordingly, non-probability sampling with convenience sampling has been chosen. A questionnaire was used to collect data from logistics workers before exploring and clarifying factors affecting the usersâ intention, namely performance expectancy (PE), effort expectancy (EE), social influence (SI), and facilitating conditions (FC). In addition, experience (EXP) was also expected to influence the relationships. Therefore, a multi-analytical hybrid structural equation modeling-artificial neural network (SEM-ANN) approach was used to evaluate the gathered data empirically. The expert panel examined the established questionnaire through face validity and content validity to ensure the validity and reliability of the survey instrument. The findings revealed the different positive impacts of factors on the intention to use blockchain. While the result of the PLS-SEM technique is a descending order impact of PE, FC, EE, SI, and EXP was found that have no meaningful effect on the relationships, the ANN approach produces a surprising conclusion when SI ranks first in the magnitude of influence.
Mohammed Alsadi, Junaid Arshad, Jahid Ali, Alousseynou Prince · 5 authors
Supply chain networks are complex structures which introduce significant challenges regarding transparency in production and traceability of components, making product certification non-trivial. Visibility within quality assurance processes is critical to this and is particularly important for autonomous & driver-less vehicles which rely on correct operation of individual parts (in the absence of human intervention) to achieve safety of such vehicles. Failure to ascertain quality assurance of parts can result in rogue behaviour among driver-less vehicles which can result in a risk to human lives. In this paper, a blockchain-based approach - TruCert, is proposed which achieves trustworthy product certification through enhanced visibility within tier 1 and beyond for complex automotive supply chains. Leveraging blockchain technology, TruCertâs potential to improve product quality assurance is demonstrated whilst also strengthening supply chain resilience to combat risks and uncertainties. Utilising the use-case of autonomous connected vehicles manufacturing, design and development of TruCert solution is presented including detailed system design, data model, and smart contracts & oracle implementations. TruCert enables trustworthy part certification across supply chain beyond tier 1 whilst achieving interoperability with heterogeneous systems across suppliers and other stakeholders. Outcomes of evaluation with respect to cost, performance, and security are also presented which highlight the effectiveness of the approach whilst identifying directions for future work.
Purpose This research tries to find the blockchain-based resilience strategies that can help the supply chains of micro, small, and medium-sized enterprises (MSMEs) to recover from the disruptions and work effectively in a resource-based view perspective. Design/methodology/approach Eight broad strategies and 32 sub-strategies are identified from the literature review. Delphi study was carried out, and detailed discussion with 16 experts helped in finalizing these strategies. Further, the best-worst method (BWM) prioritized these strategies. Findings The findings suggests that âbuilding social capital,â improving âcoordination capabilities,â âsensitivity towards market,â âflexibility in process and production,â âreduction in process and lead time,âand âhaving a resource efficiency and redundancyâ are the top strategies on which the top management should focus to overcome the situations of disruptions and enhance performance of MSMEs. Practical implications The blockchain-based strategies will enable the companies in tracing the products from the company to customers. Further, the customers will be able to identify their manufacturers, the raw materials used in manufacturing, and the life and quality of raw used materials. Altogether the textile industry will become more sensitive toward environmental practices. Originality/value The previous research has not identified and evaluated the blockchain-based resilience strategies, and therefore this study tries to fill this gap. This study used a smaller sample from the experts, so the results may vary if the larger data set is used and hypothesis testing can be done.
Blockchain technology offers a promising solution for supply chain traceability by providing an immutable, decentralized ledger for recording transactions and tracking the movement of goods. This can improve transparency, accountability, and efficiency in supply chain operations. However, implementing blockchain for supply chain traceability also poses several challenges. One major challenge is the lack of standardization and interoperability between different blockchain platforms, which can make it difficult for different supply chain partners to communicate and share information. Additionally, there are concerns about the scalability and performance of blockchain networks, as well as the need for secure and reliable data management. Despite these challenges, the potential benefits of blockchain for supply chain traceability are significant, and research and development in this area is ongoing to address these challenges and unlock the full potential of blockchain technology for supply chain management.
Muhammad Hamza Naseem, Jiaqi Yang, Tongxia Zhang, Waseem Alam
Digital technologies like blockchain, the Internet of Things, and smart warehouses have been developed due to the fourth industrial revolution, or âIndustry 4.0.â Any businessâ supply chain includes several stakeholders, including manufacturers, distributors, suppliers, and final consumers. The demand for firms to utilize these technologies to gain competitive advantages has intensified in the modern world due to rising worldwide rivalry. Additionally, the adoption of blockchain technology, in particular, can have a huge impact on a companyâs reverse logistics, accelerating processes by decentralizing, tracking, and overseeing the delivery of items to final consumers. The goal of this study is to pinpoint those significant obstacles because several must be overcome for blockchain technology to be successfully implemented in reverse logistics. This study identified 16 impediments to the adoption of blockchain technology after a thorough analysis of the literature and expert opinion. The fuzzy AHP approach was used in this study to rank those barriers as this approach helps to address the complexity and uncertainty associated with decision-making in supply chain management and provides a more robust and reliable ranking of the barriers to blockchain adoption. A case study of Pakistanâs e-commerce industry was carried out. The results show that the high installation cost, stakeholdersâ resistance to the blockchain, and the lack of top-management support are the critical success factors in blockchain adoption. From an industrial perspective, the study highlights the need for businesses to carefully evaluate the potential benefits and costs of adopting blockchain technology. It also underscores the importance of addressing the barriers to adoption to ensure successful implementation. By doing so, businesses can enhance their supply chain management and improve their overall competitiveness.
Platforms are giants in todayâs operations. Companies like Amazon and eBay are huge enterprises which belong to top enterprises in the world. In this article, we discuss platform supply chain innovations in the blockchain era. We first search the literature and identify the level of popularity of the topic over the past years. Next, we review some closely related studies in the literature and introduce the featured papers in this IJPR special issue. After that, we identify research gaps, present the ABCDE framework and propose a future research agenda.