Purpose The purpose of this paper is to understand the enabling and constraining roles of blockchain technology (BCT) in managerial work practices and conceptualise the technologyâperformance relationship in supply chain management (SCM). Design/methodology/approach A structured literature review and a theory-driven approach are used. A set of propositions are developed, suggesting how the use of BCT in supply chains can be understood to simultaneously enable and constrain SCM and performance. Findings The analysis identifies four enabling and three constraining blockchain identities to explain how the technology either âfacilitatesâ or âimpedesâ SCM and supply chain performance. Traceability, which emanates from its ability to provide data immutability, ranks highly as a core innovation of the technology. The blockchain is mainly seen as an opportunity to exploit existing supply chain resources and competencies. Research limitations/implications One limitation of the research is its conceptual nature. Future research should test the developed propositions empirically. Further research should focus on BCT as an opportunity to explore and as a relationship-building technology. More research is also needed focussing on the complex and simultaneous enabling and constraining effects of BCT in supply chains. Originality/value The paper shows the important and complex Janus-faced implications of embedding BCT in supply chains and demonstrates how organisational theory can be applied to explore the relationship between blockchain and SCM.
Vendor-managed inventory (VMI) is a widely used collaborative inventory management policy in which manufacturers/vendors manage the inventory of retailers and take responsibility for making decisions related to the timing and extent of inventory replenishment. There exist several prerequisites for a successful VMI strategy implementation like information sharing, trust, systems integration and long-term collaboration. However, in nowadays logistics flows, complex processes, high number of participants and complex distribution channels impede the successful adoption of VMI strategies. In this paper, we propose a new interaction framework based on smart contracts and blockchain for governing the relationship between the vendor and the buyer. A use-case VMI scenario is presented along with a functional smart contract. Tests performed using a local private blockchain illustrate the applicability of the proposed architecture along with the significant benefits for each participant.
The circular economy (CE) is an emergent concept to rethink and redesign how our economy works. The concept recognizes effective and efficient economic functioning at multiple scalesâgovernments and individuals, globally and locally; for businesses, large and small. CE represents a systemic shift that builds long-term resilience at multiple levels (macro, meso and micro); generating new business and economic opportunities while providing environmental and societal benefits. Blockchain, an emergent and critical technology, is introduced to the circular economy environment as a potential enabler for many circular economic principles. Blockchain technology supported information systems can improve circular economy performance at multiple levels. Product deletion, a neglected but critical effort in product management and product portfolio management, is utilized as an illustrative business scenario as to blockchainâs application in a circular economy research context. Product deletion, unlike product proliferation, has received minimal attention from both academics and practitioners. Product deletion decisions need to be evaluated and analyzed in the circular economy context. CE helps address risk aversion issues in product deletions such as inventory, waste and information management. This paper is the first to conceptualize the relationships amongst blockchain technology, product deletion and the circular economy. Many nuances of relationships are introduced in this study. Future evaluation and critical reflections are also presented with a need for a rigorous and robust research agenda to evaluate the multiple and complex relationships and interplay amongst technology, policy, commerce and the natural environment.
Based on the influence of block chain technology on information sharing among supply chain participants, mean-CVaR (conditional value at risk) is used to characterize retailersâ risk aversion behavior, while a Stackelberg game is taken to study the optimal decision-making of manufacturers and retailers during decentralized and centralized decision-making processes. Finally, the mean-CVaR-based revenue-sharing contract is used to coordinate the supply chain and profit distribution. The research shows that, under the condition of decentralized decision-making, when the retailerâs optimal order quantity is low, it is an increasing function of the weighted proportion and the risk aversion degree, while, when the retailerâs optimal order quantity is high, it is an increasing function of the weighted proportion, and has nothing to do with the risk aversion degree. The manufacturerâs blockchain technology application degree is a reduction function of the weighted proportion. When the retailerâs order quantity is low, the manufacturerâs blockchain technology application degree is a decreasing function of risk aversion, while, when the retailerâs order quantity is high, the manufacturerâs blockchain technology application is independent of risk aversion. The profit of the supply chain system under centralized decision-making is higher than that of decentralized decision-making. The revenue sharing contract can achieve the coordination of the supply chain to the level of centralized decision-making. Through blockchain technology, transaction costs among members of the supply chain can be reduced, information sharing can be realized, and the benefits of the supply chain can be improved. Finally, the specific numerical simulation is adopted to analyze the weighted proportion, risk aversion and the impact of blockchain technology on the supply chain, and verify the relevant conclusions.
Thomas K. Dasaklis, Fran Casino, Constantinos Patsakis
Identifying the optimal granularity level of traceable units is necessary when implementing traceability, particularly in food supply chains. In this paper we propose a generic framework for defining granularity levels based on product's unique characteristics, supply chain processes and stakeholders engagement. We determine different levels of granularity by using smart contracts within a blockchain-enabled supply chain traceability architecture. The granularity relates to different levels depending on the application of information within a company and between companies across complex supply chain networks. The applicability of the proposed framework is demonstrated with a food supply chain use case scenario by developing a local private blockchain-enabled architecture. The overall benefits of the proposed model are discussed along with several fruitful areas for further research directions.
AdriĂĄn E. Coronado MondragĂłn, Christian E. Coronado Mondragon, Etienne S. Coronado
Distributed ledger/blockchain has emerged as an important technology that can have a significant impact on the management of supply chains. This paper investigates the feasibility of adopting blockchain technology in both manufacturing and perishable goods supply chains. Two cases are used to illustrate the approach proposed in this work. The first case addresses the use of blockchain technology in the supply chain of composite materials in order to facilitate the certification process of components made of carbon fiber employed in the aerospace sector. The second case investigates the feasibility of adopting blockchain technology in the supply chain of live seafood. In the first case blockchain technology has the potential to be used by industry peers to perform experimental validation tests including flammability, crashworthiness, operational, etc. Additionally in both cases blockchain technology can be used for transportation, handling and storage, not to mention tamper proof checks, product history and provenance tracking.
Integrating triple bottom line (TBL) goals into supply chains (SCs) is a challenging task which necessitates the careful coordination of numerous stakeholdersâ individual interests. Recent technological advancements can impact TBL sustainability by changing the design, structure, and management of modern SCs. Blockchain technology enables immutable data records and facilitates a shared data view along the supply chain. The Physical Internet (PI) is an overarching framework that can be applied to create a layered and comprehensive view of the SC. In this conceptual paper, I define and combine these technologies and derive several high-level research areas and research questions (RQ) to investigate adoption and management as well as structural SC issues. I suggest a theory-based research agenda for the years to come that exploits the strengths of rigorous academic research, while remaining relevant for industry. Furthermore, I suggest various well-established theories to tackle the respective research questions and provide specific directions for future research.
Chandra Narayanaswami, R. Nooyi, S. R. Govindaswamy, Ramesh Viswanathan
Increasing globalization, e-commerce usage, and social awareness are leading to increased consumer demand for variety, value, convenience, immediacy, verifiable authenticity and provenance, ethical materials sourcing and manufacturing, regulatory compliance, and services after sales. Fulfilling this increased complexity of consumer demand has required supply chains to evolve into multienterprise networks with numerous flow paths in production, merchandising, and fulfillment involving many organizational/institutional handoffs, to effectively manage a large number of complex products with shorter life cycles and high transaction volumes. The supply chain management models of today place higher demands on automation and require a transition from the traditional paradigm of planning followed by long-loop execution for a handful of segments to a paradigm of managing a portfolio of end-to-end instrumented data-rich microsegmented supply chains that are monitored and adjusted in near real time. These essential aspects and challenges of supply chain management require the supporting information technology to also evolve. In this paper, we propose a novel reference software architecture to address the complex requirements of modern supply chains that also integrates blockchain into several layers of the stack. We present several examples where this reference architecture is applicable, and then demonstrate through a use case in production that integrating blockchain technology helps with providing visibility, documenting provenance, and allowing permissioned data access to facilitate the automation of many high-volume tasks such as reconciliations, payments, and settlements.
Maciel M. Queiroz, Renato Telles, SĂlvia H. Bonilla
Purpose This paper aims to identify, analyse and organise the literature about blockchains in supply chain management (SCM) context (blockchainâSCM integration) and proposes an agenda for future research. This study aims to shed light on what the main current blockchain applications in SCM are, what the main disruptions and challenges are in SCM because of blockchain adoption and what the future of blockchains holds in SCM. Design/methodology/approach This study followed the systematic review approach to analyse and synthesise the extant literature on blockchainâSCM integration. The review analysed 27 papers between 2008 and 2018 in peer-reviewed journals. Findings BlockchainâSCM integration is still in its infancy. Scholars and practitioners are not fully aware of the potential of blockchain technology to disrupt traditional business models. However, the electric power industry seems to have a relatively mature understanding of blockchainâSCM integration, demonstrated by the use of smart contracts. Additionally, the disintermediation provided by blockchain applications has the potential to disrupt traditional industries (e.g. health care, transportation and retail). Research limitations/implications The limitations of this study are represented mainly by the scarcity of studies on blockchainâSCM integration in leading journals and databases. Practical implications This study highlights examples of blockchainâSCM integration, emphasising the need to rethink business models to incorporate blockchain technology. Originality/value This study is the first attempt to synthesise existing publications about the blockchainâSCM integration, shedding light on the disruption caused by, and the necessity of, the SCM reconfigurations.
Products and associated materials are important supply chain flows. Product management greatly influences supply chain performance. Supply chain information is also critical for sound product management. Product deletion, rationalization, or discontinuation research is an important dimension often overlooked in product management. It is a critical issue for many managerial reasons, many espoused in this article. Product deletion is typically a multi-staged process including recognition, analysis and revitalization, evaluation and decision formation, and implementation. Each stage requires complicated information and data support from supply chain activities. Failure in information generating, understanding, and accuracy can prove risky for rational product deletion. Blockchain technology may help address information challenges. Blockchain technology provides traceability, transparency, security, accuracy, and smart execution, which can all contribute to the product deletion and rationalization decision. Application recommendations and managerial insights into product deletion decision making processes with blockchain technology are provided.
Blockchain possesses the potential of transforming global supply chain management. Gartner predicts that blockchain could be able to track $2 T of goods and services in their movement across the globe by 2023, and blockchain will be a more than $3 trillion business by 2030. Nowadays, a growing number of blockchain initiatives are disrupting traditional business models in each sector. In this paper, we provide a timely and holistic overview of the state-of-the-art, challenges, gaps and opportunities in global supply chain and trade operations for both the private sector and governmental agencies, by synthesising a wide range of resources from business leaders, global international organisations, leading supply chain consulting firms, research articles, trade magazines and conferences. We then identify collaborative schema and future research directions for industry, government, and academia to jointly work together in ensuring that the full potential of blockchain is unleashed amidst the socioeconomic, geopolitical and technological disruptions that global supply chains and trade are facing.
An increasing amount of use cases is discovered for blockchain technology, since it promises tamper-proof recording of product-related data. It has the potential to improve the reliability of information management for whole supply chains and thus enables new ecologically and economically service offerings. Integrating products and services into one marketable bundle is no new concept and is referred to as product-service systems (PSS). Therefore, the methodical integration of knowledge on sustainable businesses, PSS and blockchain is a promising approach to overcome current barriers to achieve an applicable circular economy. Our study contributes a structured literature review on ongoing research in the field of sustainability-focused blockchain applications. From this, we elaborate a holistic perspective by the integration of key concepts from two additional literature reviews for blockchain and PSS. Asa result, we point out potential benefits and present the effect of blockchain on sustainable PSS with a product-life cycle model.
The aim of this study is to understand the blockchain adoption behaviour in Brazilian supply chains. Specifically, the study aims to unlock the potential of social influence; taking into consideration workers from the Brazilian supply chains. We proposed a model using constructs from a unified theory of acceptance and the use of technology (UTAUT). The models were analysed using partial least squares structural equation modelling (PLS-SEM) and the findings indicated the power of social influence in predicting other UTAUT constructs. In addition, this study shows the mediation effect of effort expectancy and the facilitating conditions in the relationship between social influence and the behavioural intention to adopt blockchain. Finally, our findings bring essential theoretical and managerial implications.
This paper proposes a conceptual model of sustainable supply chain management (SSCM) in small and medium enterprises (SME) using blockchain technology (BT). With growing focus on sustainable business process, research on SSCM is gaining prominence. BT, being a disruptive technology, has potential to impact the SSCM. Using the extant literature, the antecedents of SSCM using BT have been identified. Multiple-criteria decision-making has been deployed to develop the conceptual model. Various managerial and theoretical implications along with scope for future research have been discussed.
This paper Decision making at the top level is very complex. One important responsibility of the policy makers and the governance system is to plan the safety and security to its citizen and consumers for the firms. This research address of the main concern of counterfeiting goods in todayâs time. This research identify the potential and needs of the distributed ledger technologies like blockchain and their application potential to combat the problem of counterfeiting in Indian economy. The research uses SWARA (Step-wise Weight Assessment Ratio Analysis)-WASPAS (Weighted Aggregated Sum Product Assessment) methodology after expert opinion gathered to understand the problem better and it results into the prioritization of application of blockchain in different industries. SWARA is applied to evaluate the weights of the criteria and WASPAS to evaluate and prioritize the alternatives.
Blockchain has been emerged as a promising technology for a traceability system in industry. It can also be applied to many functions of a Supply Chain Management (SCM) system, such as logistics, quality assurance, inventory management, and forecasting. One of the most important functions of the SCM is to improve the transparency, traceability and auditability of materials flow throughout the supply chain from suppliers, manufacturing facilities, warehouses/distribution centers, to customers. This research especially focuses on the impact of blockchain on supply chain traceability through the current industry applications, and its future direction.
Nowadays, integrating new technologies into all management processes leads to strong evolution especially in Smart Logistics which forms one of the fundamental pillar of the fourth industrial revolution âindustry 4.0â. As an integrated technology, Blockchain, which is an emerging concept, allows decentralized and immutable storage of verified data. The purpose of this study is to define the various applications of Blockchain in Smart Logistics, as well as to present concrete examples of these applications. This work was done by classifying the applications according to four clusters: Information, Transport, Finance, and Management, in addition to presenting the applications of each cluster.
Yingli Wang, Catherine Huirong Chen, Ahmed Zghari-Sales
While blockchain technologies are gaining momentum within supply chains, academic understanding of concrete, real-life design and implementation is still lagging, hence offering very limited insights into the true implications of blockchain technology on supply chains. This paper reports a two-year design science research (DSR) study of a smart contract initiative piloted by a consortium in the UKâs construction sector. We seek answers to the research question, âHow should a blockchain enabled supply chain be designed?â Guided by the theory of business model, we explore how a group of supply chain actors collectively designs and pilots a blockchain solution that addresses the supply chain transparency and provenance problem. Our research is one of the very few longitudinal empirical studies to offer in-depth evidence about how blockchain is deployed in complex multi-tier supply chain networks. In compliance with DSR research paradigm, we make contributions at three levels: designing and instantiating the blockchain architect and proving its utility in addressing the target problem; developing a set of design principles as a mid-range theory that can be applied and tested in different blockchain supply chain contexts; and refining and extending the kernel theory of business value at supply chain network level.
Law, regulation, and private standards have evolved to enhance sustainability in value chains. However, the volume of hard and soft laws has created complexity and fragmentation for consumers and firms. In addition, global value chains are increasingly disaggregated, making it difficult for consumers to enforce breaches of sustainability representations. Blockchain, as an immutable and digital record keeping system, is a tool that can deal with this growing complexity in global value chains. Documents verifying sustainability that were once in the private domain and stored in paper copy can now be made accessible in a secure and transparent blockchain platform. Despite a growing interest in the potential of blockchain to transform businesses, there are few concrete examples or scholarly literature showing how blockchain is operationalized in practice. Using a âconceptual framework analysisâ approach, we develop an Evidence, Verifiability, and Enforceability (EVE) framework to illustrate how blockchain can enhance sustainability by providing information to consumers on the origin of products, assurances as to the veracity of the information, and a mechanism to enforce representations through the blockchain smart contract function. However, there need to be safeguards put in place for blockchain technology to meet its promise and we discuss some of these challenges.