Manufacturing and supply chain operations are on the cusp of an era with the emergence of groundbreaking technologies. Among these, the digital twin technology is characterized as a paradigm shift in managing production and supply networks since it facilitates a high degree of surveillance and a communication platform between humans, machines, and parts. Digital twins can play a critical role in facilitating faster decision making in product trade-ins by nearly eliminating the uncertainty in the conditions of returned end-of-life products. This paper demonstrates the potential effects of digital twins in trade-in policymaking through a simulated product-recovery system through blockchain technology. A discrete event simulation model is developed from the manufacturer’s viewpoint to obtain a data-driven trade-in pricing policy in a fully transparent platform. The model maps and mimics the behavior of the product-recovery activities based on predictive indicators. Following this, Taguchi’s Orthogonal Array design is implemented as a design-of-experiment study to test the system’s behavior under varying experimental conditions. A logistics regression model is applied to the simulated data to acquire optimal trade-in acquisition prices for returned end-of-life products based on the insights gained from the system.
Dnyaneshwar Jivanrao Ghode, Vinod Yadav, Rakesh Jain, Gunjan Soni
Purpose Adoption of blockchain technology (BT) leads to shrinking supply chains, produces a better quality product, saves product development time and increases the customized offering to the customer. Since it is a new and growing area of research, researchers and practitioners are not entirely aware of challenges in the adoption of BT in supply chain (SC). Therefore, the objective of this research is to provide an overview of BT in SC and modeling of challenges in the adoption of BT in SC. Design/methodology/approach Interpretive structural modeling (ISM) is used to model the challenges of adoption of BT in SC. Challenges are identified by the literature review and verified by expert's opinions. Findings This study presents some key challenges, i.e. to develop trust within SC management system, obey the governance rules and regulations of institution while implementation of BT in SC, provide transparency of data, obtain tamperproof data to avoid fraud, improve coordination and information sharing among the SC partners, choose a profit-earning product SC for adoption of BT, adopt societal changes and train the participants to strengthen behavioral intention towards adoption of BT in SC. Additionally, interrelationships among the challenges have been identified. This work discusses potential implications based on challenges and provides a platform for the adoption of BT in SC. Originality/value The interrelations of the challenges will provide valuable understandings for developing BT solutions in SC to the practitioners.
Abstract Although there are several special features in block-chain technology such as machine trust, traceability, and security, high energy consumption remains an issue in broadening the applications of block-chain technology. Some researchers proposed the use of proof of stake (PoS) mechanism rather than proof of work (PoW) mechanism to reduce energy consumption of block-chain. However, because PoS cannot guarantee fairness, mixed consensus mechanisms could be a solution and has been adopted in many studies. This paper aims to evaluate the performances of PoW, PoS and mixed consensus mechanisms from three aspects: energy consumption, fairness, and reliability. An agent-based model of a typical block-chain system equipped with different consensus mechanisms is created in NetLogo. This model simulates and evaluates the performances of different consensus mechanisms in the block-chain system.
Anil Kumar Vishnubhotla, Rupesh Kumar Pati, Sidhartha S. Padhi
Increase in competition and the strategic move of enhanced outsourcing has made supply chain more complex. Various applications and software solutions are available to better manage this complexity. It has been observed that often such initiatives may not provide the excepted benefits. It has also been reported that an unclear understanding of business needs (including perceived risks) is the main reason of supply chain failure. The present study attempts to capture enterprise level supply chain risk in an oil company (case company) in India and explore if perception of a decision maker favours use of blockchain technology project to reduce the supply chain risk. The study adopts the following methodology: in-depth semi-structured interviews and structured survey was carried out with the top management of the case company to identify various enterprise level risks for supply chain management (SCM) projects which were subsequently clustered under Operations, Finance, Human Resources, and Strategic Business Risk categories. Inputs on the probability of occurrence and impacts of the identified risks on the enterprise-wide supply chain was mapped on the risk severity matrix (heat map) to prioritize the risks. Subsequently, the second round of questionnaire was developed and a similar survey carried out again with the same sample show the change in risk perception due to potential application of blockchain technology. Interesting insights could be gained from the practitioner’s perspective on the value contribution of using blockchain for improving management of SCM risks. It could be observed that a number of the high priority risk (in the initial scenario) could now be eliminated or managed due to specific characteristics of blockchain.. One of the major limitations of the present study is the lack of generalizability of the insights as it is based exclusively on the perspective of the case company towards the blockchain.
Bing Qing Tan, Fangfang Wang, Jia Liu, Kai Kang · 5 authors
The logistics industry around the world has proliferated over recent years as a large number of business organizations have come to recognize the importance of logistics. Cost control used to be emphasized to remain competitive, but recently green logistics has gained attention with the awareness of the integration of economy and society as a whole. Nowadays, green logistics is a useful concept to improve the sustainability of logistics operations, and its related policies and theoretical research have been investigated and explored. However, the practical applications of green logistics are impeded by real-time data sharing, which is common in the logistics industry. Blockchain technology is adopted to address this challenge and enable data sharing among related stakeholders. This paper presents a reference framework for green logistics based on blockchain to reach the sustainable operations of logistics, with the integration of the Internet of Things and big data. Finally, potential benefits and limitations are analyzed when implementing this framework.
İsmail Erol, İlker Murat Ar, Ali İhsan Özdemir, İskender Peker · 7 authors
Purpose The objective of this study is to assess quantitatively how feasible blockchain is for various industries, such as logistics and supply chain, health, energy, finance, automotive, pharmaceutical and agriculture and food using a comprehensive list of indicators. Design/methodology/approach A decision aid was applied to the problem of identifying the feasibility of blockchain in Turkish industries. To this end, first, a set of indicators was identified. Then, the fuzzy AHP and fuzzy TOPSIS were utilized to assess the feasibility comparatively using the data gathered from a group of experts. Finally, a scenario analysis was conducted to ensure the consistency of our evaluation. Findings The findings of this study suggest that comparatively, logistics and supply chain , finance and health industries are the most feasible industries for blockchain. This study further suggests that blockchain is the least feasible for the automotive industry compared to the rest of the identified industries. Research limitations/implications It is cumbersome to find out the respondents who have sufficient knowledge of both blockchain and the identified industries. Even if we took the utmost care in identifying the right respondents, we limited our search to the biggest industrial hubs of Turkey. Practical implications The findings of this research may help various decision-makers employed in governments, conglomerates, software and consulting firms and national research institutions make more informed decisions and allocate their resources more effectively. Originality/value To this date, the current studies have solely investigated possible research opportunities in blockchain and demonstrated several blockchain applications in stand-alone cases. To the best of our knowledge, however, no single study exists that evaluates the feasibility of blockchain comparatively and holistically among a group of industries using various indicators.
Marjaneh Jahangiri Lahkani, Shouyang Wang, Mariusz Urbański, Mariya Egorova
Information technology advancements integrated with the e-commerce supply chain allow participants in the business process to effectively work with large volumes of data and control transactions. To improve the profitability and competitiveness of e-commerce companies, a blockchain solution was incorporated into the global B2B (Business-to-Business) supply chain. This technology simplified the transaction process by providing all participants in the sustainable B2B buying process with the same data about the trade. Overall, the use of blockchain improved the efficiency of logistics and digital documentation which reached 74% and 75%, respectively. The main advantage of using blockchain is that it creates a decentralized database that is secure. In addition, it increases the speed of payment and the reliability and transparency of data transfer. Further research may focus on the use of blockchain in green logistics to improve environmental sustainability in the e-commerce supply chain.
In smart-logistics ecological chains led by e-commerce platforms, the organisational efficiency has become an important indicator to measure the ecological chain’s development. However, no scientific theoretical framework exists regarding the factors affecting such organisational efficiency. This paper adopts a multi-case study method to research four e-commerce platforms in China and investigate the current situation and development of smart-logistics ecological chains. Through interviews and analysis, the research proposes a theoretical framework of factors influencing the organisational efficiency about smart-logistics ecological chains led by an e-commerce platform. First, it reveals that under e-commerce platform leadership, the smart-logistics ecological chain’s organisational efficiency directly relates to two factors: the eco-chain’s technological innovation capability and contract fulfilment. Second, national policies, consumer demands, the competition among ecological chains, and Information-sharing will indirectly affect the smart-logistics ecological chain’s organisational efficiency. Third, enhancing the smart-logistics ecological chain’s technological innovation capability positively impacts its contract fulfilment.
Supply chain literature has long recognized the benefits of information sharing. Researchers and practitioners see high potential for improving processes, enabling new replenishment policies, and enhancing supply chain integration. Even though information technology represents a vital role as a driver and a success factor for implementing information sharing, established technologies still do not reflect the highly decentralized and fragmented characteristics of complex and often global supply chains. Early research shows that blockchain might be an enabler for the supply chain management. However, little is known about how blockchain might improve information sharing for complex, multitier supply chains. Therefore, this article aims at analyzing how and to what extent blockchain can facilitate information sharing for vendor managed inventory by designing a software prototype based on Hyperledger Fabric using the design science research approach. This research took place in close cooperation with a leading German healthcare technology manufacturer, which allowed us to base our study both on literature and practical insights. With our results, we contribute to the supply chain knowledge base by introducing the decentralized information hub model, describing how companies utilize decentralized technologies, such as blockchain, to facilitate information sharing.
Companies trying to build new solutions using blockchain are confronted with\na plethora of available concurrent technologies that have many control knobs\nwhich require fine-tuning by experts. Exiting studies that build decision\nmodels for blockchain adoption or selection lack an automated way to use\nnon-functional requirements to provide recommendations. In this paper, we build\na knowledge base for blockchain solutions by analyzing whitepapers and studies,\nbut also our benchmark results performed in a controlled environment. Then, we\nimplement a Multi-Criterion Decision Analysis method to determine the most\nsuitable blockchain solution from companies provided requirements and\npreferences. Finally, we illustrate our approach by running the decision\nprocess on a realistic supply-chain use case. This paper provides a rationale\nfor blockchain deployment choices. While still limited in scope, we plan to\ninclude more blockchain alternative and more flexible requirements inputs in\nfuture work.\n
Purpose The main objective of this paper is to justify the implementation of blockchain (BC) over the traditional method deployed in the supply chain (SC) after using the fuzzy–analytic network process (fuzzy-ANP) application. Over the past two decades, the overall product cost is affected by the SC at a global level. Organizations are working on their existing SC for improving their performance. BC technology is a newly emerging technology and magnetizes the attention of researchers and industrialists. This technology is still at the initial stage, and only little investigation is available in the literature and it has not been much investigated by researchers. Design/methodology/approach Literature and expert opinion interpretation in BC characteristics are further analyzed and modeled using fuzzy–interpretive structural modeling (fuzzy-ISM), fuzzy-MICMAC and fuzzy-ANP. The combined approach of both fuzzy-ISM and fuzzy-MICMAC is applied to identify the common drivers to integrate the BC technology in the light of efficient supply chain management (SCM). Findings Comparative analysis between traditional and BC-based supply chain (BCSC) using fuzzy-ANP is carried out, considering the common driving characteristics. The proposed integrated (combined) approach of fuzzy-ISM, fuzzy-MICMAC and Fuzzy-ANP found that integration of BC with SCM is better prioritized than traditional supply chain management (TSCM). The findings in the article endorse that the TSCM can be made efficient by integrating the BC technology considering five most driving characteristics, namely, data safety and decentralization, accessibility, documentation, data management and quality. Originality/value The current proposed research work identifies 12 characteristics after studying numerous literature reviews and having a discussion with SC experts with knowledge of BC. The integrated approach of fuzzy-ISM and fuzzy-MICMAC is implemented here. After that, fuzzy-ANP is used to give ranking among BCSCM and TSCM. The study carried out in this article motivates industries to implement BC in their SC system. It will reduce the transaction cost, documentation work, save time and eliminate human error at the national and international levels. The common characteristics identified in this proposed work would help in managerial decisions for the adoption of BC to ensure that the system becomes more transparent, easily traceable and finally improve the performance.
Yongjian Li, Lu Liu, Lipan Feng, Wen Wang · 5 authors
ABSTRACT Trade credit finance (TCF), retailer independent finance (RIF), and partial credit guarantee (PCG) finance are all important financing tools for capital‐constrained retailers. Risk aversion has a significant impact on financing, but it is difficult to measure. This research investigates the manufacturer's financing provision strategies considering risk aversion and capital market competition. First, an ordinary least squares method with conditional value at risk criteria is proposed to measure the risk attitude of decision‐makers. Second, the equilibrium mode of financing provision and impacts of risk aversion and the retailer's initial capital are analyzed. Third, a laboratory experiment and numerical analysis are conducted to verify the risk aversion estimation method and other theoretical results. We draw the following conclusions. First, the equilibrium financing provision mode changes with the degree of risk aversion and retailer's initial capital. Although the manufacturer prefers TCF and PCG to RIF, the retailer chooses the RIF mode when its initial capital is low. A variable parameter guarantee mechanism is proposed to encourage more retailers to choose PCG instead of RIF. Second, the risk‐averse financing system realizes super‐centralization (i.e., utility in the decentralized system is larger than that in the centralized system) when the manufacturer is less risk averse than the other participants. A Pareto‐optimality mechanism is designed to realize super‐centralization and coordinate the decentralized financing system. This research provides financing providers with practical guidance on the efficient implementation of supply chain financing.
Dnyaneshwar Jivanrao Ghode, Vinod Yadav, Rakesh Jain, Gunjan Soni
Purpose Blockchain technology (BT) is setting world-shattering standard in all type of transactions in business. BT has the prospective to drastically transform supply chain (SC). The main challenge is to enhance trust among the SC stakeholders. This paper aims to identify and prioritize the factors and its challenges that influence the adoptability of BT in SC. The prioritization of these factors will be helpful to the practitioners to decide the strategy of implementing the BT in SC. Design/methodology/approach The factors influencing adoption of BT are identified from the review of literature and expert opinion is used to rank the factors influencing the adoptability of BT in SC using grey relational analysis (GRA). Findings We identified and prioritized key factors: inter-organizational trust and relational governance as organizational challenge, data transparency and data immutability as technological challenge, interoperability and product type as operational challenge and social influence and behavioral intention as social challenge that influences adoptability of BT in SC. Originality/value The priority of these factors will guide future researchers and industry practitioners to plan rational and financial strategy for implementing BT in SC.
Riccardo Tiscini, Silvia Testarmata, Mirella Ciaburri, Emanuele Ferrari
Purpose The purpose of this paper is to strive to close the current research gap pertaining to potential implications of the blockchain (BC) for sustainable business models (SBMs) in the agri-food industry. Design/methodology/approach To answer the research question, the authors utilised the Value Triangle framework by Biloslavo et al. (2018) in order to explore the potential innovation of BC for SBMs in the agri-food industry. Then, the authors apply it to an in-depth exploratory case study of the Placido Volpone winery. The authors draw data from strategic plans, annual reports, corporate website and a semi-structured interview with the winery's founder. Findings The authors show how BC technology could be a source of SBM innovation in the agri-food industry. Research limitations/implications BC technology has the potential to significantly change SBMs. Given the huge set-up investments by the industry, academic research investigating potential implications and supporting companies in their application of BC is needed. This paper explores how the implications of BC as source of innovation on SBMs can be investigated. Practical implications The research results of this study can be used by company leaders and managers to support the development of SBMs through the introduction of BC technology in their business activities. Originality/value The paper is novel because it investigates the relationship between SBM innovation and BC providing theoretical justification to SBM technological innovation in an agri-food setting. Additionally, the paper provides an empirical application of the framework by Biloslavo et al. (2018) for understanding the development of SBM through BC in the agri-food industry.
Sebastian Kummer, David M. Herold, Mario Dobrovnik, Jasmin Mikl · 5 authors
Potential blockchain applications in logistics and transport (LSCM) have gained increasing attention within both academia and industry. However, as a field in its infancy, blockchain research often lacks theoretical foundations, and it is not clear which and to what extent organizational theories are used to investigate blockchain technology in the field of LSCM. In response, based upon a systematic literature review, this paper: (a) identifies the most relevant organizational theories used in blockchain literature in the context of LSCM; and (b) examines the content of the identified organizational theories to formulate relevant research questions for investigating blockchain technology in LSCM. Our results show that blockchain literature in LSCM is based around six organizational theories, namely: agency theory, information theory, institutional theory, network theory, the resource-based view and transaction cost analysis. We also present how these theories can be used to examine specific blockchain problems by identifying blockchain-specific research questions that are worthy of investigation.
Zhi Li, Hanyang Guo, Ali Vatankhah Barenji, W.M. Wang · 6 authors
Due to the rapid development of information technology, supply chain network is evolving, which involves a higher level of interdependence between organisations. Conventional production capability evaluation relies on centralised approaches with limited sharing of performance and evaluation data. Besides, traditional evaluation methods are mainly based on subjective manual operation using limited data. In this paper, we propose a production capability evaluation system by incorporating Internet of Things (IoT), machine learning and blockchain technology for supply chain network. It contributes to achieving real-time data collection and automated enterprise production capability evaluation mechanism. Besides, blockchain technology is adopted to enable open and decentralised data storage and sharing, provide fair and automatic trading of data. The proposed system is evaluated through a simulation experiment. It demonstrated how to utilise the proposed system to choose suitable upstream enterprises. The successful development of the system could help to enhance production efficiency, reduce risk and provide a reasonable and more sustainable production management in supply chain network.
Blockchain implications within the sustainability domain are rapidly arousing the interest of researchers and institutions. However, despite the avalanche of articles, papers, and recently published books, innovation in the blockchain domain is still heavily influenced by light literature, such as news, articles, opinion posts, and white papers. Lacking a homogeneous literature background, case studies often fall into storytelling, providing mere descriptions of the facts according to the writers’ impressions and opinions. We therefore investigate blockchain adoption for sustainable purposes through a case study while remaining firmly grounded in three main theoretical literature streams: knowledge management, knowledge infrastructure, and trust. Since blockchain interaction with the real world is managed by oracles, addressing the oracle problem is essential in order to evaluate the effectiveness of blockchain for sustainability issues. However, to the best of the authors’ knowledge, no other paper has efficiently addressed this subject or even mentioned it. Recognizing its scarce consideration in the literature, the oracle problem will be analyzed in both theoretical and practical terms, thereby providing a way to solve the issues related to non-fungible products in the supply chain. Choice over the selected case study was made in light of the divergence in motives for the adoption of blockchain (economic over social), which makes the results more inferable at a broader scale and offers an insight into how sustainable innovations can also be economically viable.