Pratyush Kumar Patro, Raja Wasim Ahmad, Ibrar Yaqoob, Khaled Salah ¡ 5 authors
Product recall management in the automotive industry is a challenging problem that affects human lives and the safe operation of automobiles. Product recalls can assist in removing potentially unsafe products from the marketplace and minimizing a companyâs responsibility for corporate negligence. Todayâs systems and technologies leveraged for product recall management in the automotive supply chain fall short in providing transparency, traceability, reliability, audit, security, and trust features. In this paper, we propose a blockchain-based approach to overcome the aforementioned problems related to product recall management. We employ the public Ethereum blockchain and integrate it with the decentralized storage of the InterPlanetary File System (IPFS) to deal with the large-sized data problem. We present the system design and six algorithms explaining the working principles, information exchange flow, and stakeholdersâ detail and their sequential interactions. We discuss the implementation details, generalization aspects, and cost and security analyses to evaluate the performance of the proposed approach. The proposed solution is cost-effective, secure, and enables automakers to have end-to-end visibility of information during product recalls. We make the smart contractsâ code publicly available on GitHub.
This study introduces a dualâchannel supply chain including a supplier and a retailer with capital constraints, in which the retailer can apply for the trade credit financing from the supplier. This work investigates the effects of two typical behaviors, free riding behavior and consumer switching behavior, on inventory, ordering, and sales effort decisions in decentralized and centralized decision situations with stochastic demand. In order to achieve the optimal performance in the centralized system, this research designs a partial buyback contract to coordinate the supply chain. Furthermore, numerical analysis is provided to test the feasibility of the model. The results indicate that in the dualâchannel supply chain with the above two behaviors, (1) the optimal sales effort level, optimal order quantity, the optimal offline, and online profits under the centralized decisionâmaking are more than those under decentralized scenario, except for the optimal inventory level; (2) the increase of the offline consumer switching rate will lead to the reduction of the offline order quantity and the offline expected profit and raise the online inventory level and the online expected profit; (3) the increase of the online consumer switching rate will raise the offline order quantity and the offline expected profit but has no significant impact on the online inventory level and the online expected profit; (4) the increase of the free riding coefficient of the supplier, no matter whether in decentralized or centralized systems, will reduce the offline sales effort level, the offline expected profit, and the online expected profit and raise the inventory level. Finally, this work provides some managerial implication.
Problem definition: For many supply chains, deep-tier suppliers, due to their small size and lack of access to capital, are most vulnerable to disruptions. We study the use of advance payment (AP) as a financing instrument in a multitier supply chain to mitigate the supply disruption risk in a traditional system (with limited visibility) and a blockchain-enabled system (with perfect visibility). The main goal of this paper is to shed light on how blockchain adoption impacts agentsâ operational and financial decisions as well as profit levels in a multitier supply chain. Academic/practical relevance: Traditionally, because of the limited visibility in the deep tiers, powerful downstream manufacturersâ financing schemes offered to their immediate upstream suppliers are not effective in instilling capital into the deep tiers. Advancements in blockchain technology improve the supply chain visibility and enable the manufacturer to better devise deep-tier financing to improve supply chain resilience. Methodology: We develop a three-tier supply chain model and take a game-theoretic approach to compare how blockchain-enabled deep-tier financing schemes affect a financially constrained supply chainâs optimal risk-mitigation and financial strategies. Results: We find that although improved visibility via blockchain adoption can help the manufacturer make informed supply chain financing decisions, whether it can benefit all supply chain members depends on the financing schemes in use. Blockchain-enabled delegate financing increases risk-mitigation investments and benefits all three tiers of the supply chain only when the tier 2 supplier is severely capital-constrained with the working capital below a threshold. Because delegate financing endows the intermediary tier 1 supplier with leverage over the manufacturer, the inefficiency inhibits an all-win outcome when the tier 2 supplier is not severely capital-constrained. Blockchain-enabled cross-tier direct financing exhibits a compelling performance as it always leads to win-win-win outcomes (and is thus ubiquitously implementable) regardless of the suppliersâ working capital profile. Managerial implications: Our insights help firms assess opportunities and challenges associated with enhancing supply chain visibility via blockchain adoption.
Johannes Mayer, Philipp Niemietz, Daniel Trauth, Thomas Bergs
The vision of the Paris Climate Convention is global greenhouse gas neutrality by 2050. Manufacturing industry accounts for approximately 25% of global greenhouse gas. The achievement of emission targets requires joint implementation and the participation of the employee. An incentive concept based on a Distributed Ledger Technology allows the automatically reward of climate protection measures based on tamper-proof stored Key Performance Indicators. The technology also enables the automated payment of a CO2-tax proportional to energy consumption. A technology recommendation for the incentive concept based on an analysis of the technological requirements for a distributed ledger completes the paper.
Santosh Nandi, Joseph Sarkis, Aref A. Hervani, Marilyn M. Helms
Purpose Using the resource-based and the resource dependence theoretical approaches of the firm, the paper explores firm responses to supply chain disruptions during COVID-19. The paper explores how firms develop localization, agility and digitization (L-A-D) capabilities by applying (or not applying) their critical circular economy (CE) and blockchain technology (BCT)-related resources and capabilities that they either already possess or acquire from external agents. Design/methodology/approach An abductive approach, applying exploratory qualitative research was conducted over a sample of 24 firms. The sample represented different industries to study their critical BCT and CE resources and capabilities and the L-A-D capabilities. Firm resources and capabilities were classified using the technology, organization and environment (TOE) framework. Findings Findings show significant patterns on adoption levels of the blockchain-enabled circular economy system (BCES) and L-A-D capability development. The greater the BCES adoption capabilities, the greater the L-A-D capabilities. Organizational size and industry both influence the relationship between BCES and L-A-D. Accordingly, research propositions and a research framework are proposed. Research limitations/implications Given the limited sample size, the generalizability of the findings is limited. Our findings extend supply chain resiliency research. A series of propositions provide opportunities for future research. The resource-based view and resource-dependency theories are useful frameworks to better understanding the relationship between firm resources and supply chain resilience. Practical implications The results and discussion of this study serve as useful guidance for practitioners to create CE and BCT resources and capabilities for improving supply chain resiliency. Social implications The study shows the socio-economic and socio-environmental importance of BCES in the COVID-19 or similar crises. Originality/value The study is one of the initial attempts that highlights the possibilities of BCES across multiple industries and their value during pandemics and disruptions.
Most current blockchain and carbon emission studies are from engineering and sciences disciplines. By incorporating blockchain technology into supply chain integration capabilities, the firms are be able to work collaboratively with each other to enhance the supply chain integration and simultaneously reduce the carbon emission in a supply chain. This paper presents a conceptual framework to understand the role of blockchain in a low carbon supply chain management. Applying the Socio-Technical Theory and Resource-Based View, the research propositions between blockchain, supply chain integration capability and carbon emission are proposed in the research framework. The results indicate that the blockchain technology may be viewed as a strategic management approach to enhance supply chain integration and reduce the carbon emissions. In addition, it may be adopted as an operational tool to track carbon footprint, streamline processes and improve efficiency of carbon management to minimize the overall emissions in supply chains. The paper contributes to the blockchain literature and its applications in low carbon supply chain management and provides recommendation for future research.
Purpose Social manufacturing has emerged. It aims to integrate the manufacturing resources of micro- and small-scale manufacturing enterprises (MSMEs) and help MSMEs cope with the dynamic, service-oriented and personalized market demands. In social manufacturing, MSMEs cooperate with each other through manufacturing resource sharing. However, because MSMEs are distributed and decentralized, the efficiency of establishing reliable cooperation between MSMEs is relatively low. Therefore, this paper presents a blockchain-driven cyber-credit evaluation system (BCCES) to implement distributed cyber-credit evaluation. BCCES can provide reliable cyber-credit for distributed MSMEs without the trusted third party. This can improve the efficiency of establishing reliable cooperation among unauthentic MSMEs. Design/methodology/approach The paper proposes a BCCES to evaluate MSMEs' cyber-credit in decentralized environment. In BCCES, a cyber-credit evaluation model is proposed by improving set pair analysis (SPA) method, and cyber-credit smart contract and distributed consensus mechanism are designed according to the runtime logic of distributed cyber-credit evaluation. Findings The results confirmed that BCCES is feasible and effective to implement cyber-credit evaluation without the trusted third party. With the advantages of blockchain, BCCES can automatically realize cyber-credit evaluation through smart contract and distributed consensus. At the same time, BCCES can evaluate the real-time cyber-credit of MSMEs based on their latest service evaluation. In addition, we can design corresponding smart contracts according to actual requirements, which makes blockchain applicable to different distributed scenarios. Originality/value The paper combines blockchain and SPA to implement cyber-credit evaluation in social manufacturing and provides a new feasible idea for cyber-credit evaluation without the trusted third party. This can also provide MSMEs a reference of applying blockchain to other distributed scenarios through combining smart contract and different algorithms.
Summary In recent years, blockchain (BC) networks have expanded to a broad spectrum of fields. They have garnered significant attention due to their feature of creating secure private and public networks in a decentralized manner. The traditional FSC fails to meet the customer requirements of quality, safety, reliability, transparency, and traceability. This paper proposes a novel 3âstage methodology using principal component analysis (PCA), total iterative structural modeling (TISM), and Matrice d'Impacts CroisĂŠs Multiplication AppliquĂŠe Ă un Classement (MICMAC) analysis to develop an integrated BC with the food supply chain (FSC). The existing literature was surveyed and industry experts' opinion was gathered and various critical success factors (CSF) were identified which are associated with FSC and BC. The data collected from experts were then evaluated for data consistency and dimension reduction through PCA. The dimensionally reduced data set was analyzed by TISM and MICMAC analysis. TISM and MICMAC analysis categorizes the enabler factors according to their hierarchical level and is used to label or distinguish between dependence and driving power. The integrated methodology found nine CSFs, namely, transparent system, fraud detect, inventory management with tracking, scalability, secure system, cost reduction, safe and quality food, customer satisfaction, and government regulations, which are the main drivers for the FSC business. The paper integrates information technology, Blockchain, with operation management, supply chain. The proposed model overcomes the limitation associated with FSC and will motivate the academia and industry to adopt and achieve efficient and effective goals in this field of FSC.
Despite there are some arguments about blockchain, it has been highlighted as an important distributed secure technology in the 21 st century. It is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Dobrovnik et al. (2018) suggest that blockchain is a revolutionising technology that would change industries at an international level, add values to firms and supply chain networks, improve commerce, and drive economy. Although blockchain has attracted attentions, very few blockchain studies have been focussed on supply chain integration and collaboration areas. This study illustrates the possibilities of applying blockchain technology in the coordination of activities for effective and efficient supply chain management. The study takes a closer look at the use of blockchain in supply chains beyond cryptocurrency, payment, and finance via the use of smart contract and consensus algorithm (i.e., imposing constraints). The key attributes of blockchain are discussed and potential questions were identified in New Zealand. The expected outcome of this study will advance the understanding of the blockchain and supply chain literature, besides inspire both researchers and practitioners to consider the use of blockchain in different context-aware future studies.
Using environmentally friendly materials is a popular business practice in the fashion industry nowadays, which can affect both a fashion product's cost and its environmental impacts in the manufacturing process. Given the growing social consciousness of the public, the integration of environmentally friendly materials can also influence the market demand of fashion products. This article studies the information disclosure games over the environmental efforts in fashion supply chains. We consider a fashion retailer, which is the Stackelberg leader, orders sustainable fashion products made from environmentally friendly materials from a manufacturer. The fashion retailer can choose either to affix the eco-label or to adopt the blockchain technology, to declare the environmental quality of the fashion product to consumers. Meanwhile, given that the environmental quality is unobservable to the fashion retailer and the consumers, the manufacturer with credibility concerns can have the actual environmental quality of the fashion product discounted. We discuss how the application of the blockchain technology influences the information disclosure games over the environmental efforts in the fashion industry. Findings in this article advance the understanding on the application of the blockchain technology in sustainable practices in fashion supply chains.
Purpose The purpose of this study is to analyze blockchain (Bc) platforms in order to expand knowledge about the functionalities applied to supply chains (SCs). Therefore, this research seeks to address what these functionalities are and whether they are aligned with the theory. Design/methodology/approach The research utilizes a literature review on Bc in SC (Bc-SC) and an exploratory study focusing on the developers of Bc platforms. Findings The research maps and synthesizes concepts and applications of the platforms for SC. The platforms involved with the development of solutions with Bc technology are relatively representative (138 found by this research, and 47 offer solutions in SC), as well as the diversity of solutions and application (101 applications), covering different activities and areas of the SC. Research limitations/implications Despite extensive research and data analysis, there may be other platforms and solutions not analyzed in this paper. Practical implications The narrative and the different examples provided contribute to managers' understanding of the different possibilities for Bc-SC. Studying the services offered by the various platforms also enables managers to better understand what options exist and could potentially be utilized. Originality/value This is one of the first papers in a leading international OSCM (operations and supply chain management) journal to analyze the Bc platforms in SC and thereby has its relevance by synthesizing the knowledge that is dispersed in software developers (platforms).
SaĹĄa MaleĹĄeviÄ, Michael Lustenberger, Florian Spychiger
Improving current supply chains by using distributed ledger technology (DLT) has been a highly researched topic during the last years. Currently, there are numerous articles elaborating on how such technologies can theoretically improve supply chains. However, case studies of such concepts and their economic value are scarce. In order to bridge this gap, we collaborated with a regional label company to clarify how a distributed ledger technology would benefit their ecosystem. This work answers the question of how such a prototype would look and whether it adds value. By following design science research practices, we design two artifacts based on requirements gathered in 14 interviews and discuss the artifactsâ elements within an evaluation panel. Our findings show that a distributed ledger application for the regional label ecosystem should have an open and decentralized architecture giving all participants full access to the shared data while still providing security and privacy for sensitive data. Additionally, data capturing should be simple. However, such an application does not add sufficient economic value and is currently of no practical interest in the regional label ecosystem as the expenditure likely exceeds the benefit.
Arvind Upadhyay, Julius Oluwasunkanmi Ayodele, Anil Kumar, Jose Arturo GarzaâReyes
Purpose This paper aims to explore the challenges and opportunities of blockchain technology adoption from the lens of the technologicalâorganisationalâenvironmental (TOE) framework for operational excellence in the UK automotive industry context. Design/methodology/approach The research methodology of this study follows a systematic review approach, which analyses existing academic published research papers in the top 35 academic journals. There was no specific timeframe established for this study and shortlisting the articles through a set of used keywords. A sample of 71 articles was shortlisted and analysed to provide a discussion on technological and management challenges and opportunities of blockchain adoption from the lens of the TOE framework for operational excellence. Findings The findings of this study present significant theoretical and managerial implications and deep understanding for firms seeking to understand the challenges and opportunities of blockchain adoption for their operational excellence. Research limitations/implications The systematic literature approach was considered for the present study to explore existing academic papers on technological and management challenges and opportunities from the lens of TOE framework for operational excellence, whereas a more specified method meta-analysis can be considered for future research. The study has been explored in the UK automotive industry context, which has been considered as the limitation of generalisation across countries and industries. Originality/value This paper represents the most comprehensive literature study related to the technological and management challenges and opportunities of blockchain from the TOE framework angle for operational excellence.
Kostas Douladiris, Thomas K. Dasaklis, Fran Casino, Christos Douligeris
Reverse logistics (RL) activities of medical equipment play a crucial role in properly managing durable medical devices at the end of their life. However, refurbishing medical equipment is not a straightforward process, as there exist many challenges associated to their proper re-positioning into the market. In this paper the use of blockchain technology is proposed as a viable solution for establishing sound refurbishing channels for medical equipment while considering relevant regulatory, security and operational prerequisites. In particular, we propose a highly robust traceability mechanism for medical equipment refurbishing activities based on blockchain and smart contracts. Our approach offers multiple and disparate stakeholders (device manufacturers, hospitals, refurbishers, retailers etc.) to share critical RL information in a timely, verifiable and secure fashion. The system provides forensics-by-design functionalities and safeguards the chain-of-custody for all the refurbishing processes taking place. A proof-of-concept implementation is provided as well as a discussion of the various benefits of the proposed RL system.
The research aims at analyzing the integration of Waste Management (WM) strategies and Information management in the construction procurement process. The application of Building information modelling (BIM) methodologies for a Most Economically Advantageous Tender could address the digital transition in order to adopt environmentally sustainable practices. Despite the wide regulation regarding waste minimization, an overview of which is provided, AECO is still one of the most polluting industrialized sector. Drivers and barriers to the method, and a literature review are provided: BIM approaches to enable WM practices have been analyzed from the designer and constructorâs point of view, but few studies investigated the role of the Client, in particular the Public Client. The goal of the study was to evaluate the efficiency of Most Economically Advantageous Tender and a BIM methodology to promote WM strategies during the tender phase. Design Build (DB) and Design Bid Build (DBB) procurement models are tested through three case studies of Italian schools' calls for proposals: the BIM model enabled to verify the bids in terms of WM strategies implementation. Blockchain and Smart contract future applications are also investigated in order to ensure transparency of the whole process. The Public Client could trigger a change in the construction sector regarding the integration of WM practices, as a central and active actor of the construction process, through the application of Green Public Procurement and BIM methodologies.
The growing attention to emerging technologies has raised several doubts regarding the sustainability aspects. Among the new technologies, blockchain has laid the foundations for a revolution in the financial field but also in the energy, tourism, medical, industrial and supply chains sectors. Through a systematic literature review, 37 documents were analyzed to describe the sustainable aspects generated using blockchain in supply chains. Therefore, the results achieved provide two levels of analysis. The former highlights the impact of the adoption of blockchain in supply chains based on the three dimensions of sustainability: environmental, economic and social. The latter shows the positive and negative impacts of each form of sustainability. The purpose of the work is to summarize the current state of the art in order to propose a future development agenda based on the need to simulate and define a measurability for each dimension of sustainability. Finally, the study provides a broad overview of practical and managerial implications for entrepreneurs and researchers. On the one hand, the work shows how the use of blockchain improves the profits and reputation of companies. On the other hand, it highlights several research gaps to be investigated and considered by researchers.
Kevin Gordillo Orjuela, Paulo Alonso Gaona-GarcĂa, Carlos Montenegro
In recent years an effort has been made to improve supply chain management (SCM) and traceability control in different industrial sectors, for example, in agriculture one of the main concerns is about to know where is the product in particular moment and where it will be next. Problem here is, as many other systems, the centralisation of information and trust problems derived from human interaction with transactions in the system. Based on this context of lack of trust, we propose the design and development of a platform using a database based on Blockchain technologies, the platformâs main effort is to propose a solution for agriculture SCM and control over internet taking as study case Colombian agriculture negotiation process.
Purpose This paper aims to explore patterns of business financing and adoption of blockchain technology in the agricultural industry. The adoption of blockchain technology in terms of recording, storing, validating and securing data can solve a variety of agricultural problems such as agricultural business financing. If the banking and insurance industries are connected in real-time to activity data in the agricultural industry, they can create better credit ratings and profile models. So, finally, all parties in the agricultural industry have a greater chance to get business financing from banks. Design/methodology/approach This paper uses a case study research approach with a framework of analysis of the theory of adoption of technology, organization and environment (TOE) and the theory of âmindfulness of adoptionâ. The case study method has advantages when verification is still questioned or the application of certain theories in practice as phenomena and contexts that occur in the field in accordance with the application of blockchain technology into a relatively new business, both technically and practically in the field. Findings The findings indicate that there are no barriers to the availability of blockchain technology for technology adoption. The characteristics of this technology are very suitable for solving financing and supply chain business problems in the agricultural industry. However, the adoption of blockchain technology in agriculture shows that there is complexity in the organizational context involving internal and external organizations. The number of organizations and small parties involved in the agricultural process challenges the adoption of blockchain technology as new technology. Then, the external environment of technology, especially government regulations in developing countries, is still an obstacle to the adoption of blockchain technology. Research limitations/implications This study faces several limitations, namely, the limited case of implementation of the blockchain technology due to the novelty of technology and government regulation. So that further research related to the adoption of blockchain technology needs to be done using field data such as surveys. Research related to the connectivity of the banking industry and other financial institutions also needs to be explored further, especially in creating a data-based credit risk model of the blockchain system. Originality/value On the practical side, case studies of technology adoption and its relationship with the financing of agricultural business are still little explored so this study contributes to exploring the application of blockchain technology in the agricultural industry. The adoption of blockchain technology has an impact not only on farmers but also on all parties involved in the supply chain including banks, insurance and other financial institutions. In addition, the distributed data exchange business model using blockchain technology is a new business model in the agriculture industry.
Blockchain technology is a disruptive technology that changes business and supply chain models. Using distributed software architecture and advanced computing, blockchain can change the way information is exchanged between actors in the chain. Blockchain technology provides a platform for solving the problem of tracking product information in supply chain management. Accordingly, the present study aims to provide a model for evaluating the maturity of blockchain technology in the agricultural supply chain. The present research is applied that has been done in three stages. In the first phase, the dimensions of the blockchain are ranked by agricultural experts using the SWARA method. The research experts are 13 faculty members of the department of agriculture active in the field of technology application. In the second phase, a model is designed to evaluate blockchain maturity using each dimension of blockchain technology and maturity dimensions. In the third phase, the proposed model is tested using data collected by a questionnaire in the supply chain of a company active in the agriculture sector. The research findings show that smart contracts, Internet of Things (IoT), and transaction records are of the highest importance among the blockchain dimensions. Also, the supply chain under study is in a good condition in digital documents. Theoretically, the originality aspect of the research is that it determines the importance of blockchain dimensions in the field of agriculture and from an applied point of view, it introduces the maturity model of blockchain in supply chain management.