Vijaya Kumar Manupati, Tobias Schoenherr, M. Ramkumar, Stephan M. Wagner · 6 authors
Blockchain technology is destined to revolutionise supply chain processes. At the same time, governmental and regulatory policies are forcing firms to adjust their supply chains in response to environmental concerns. The objective of this study is therefore to develop a distributed ledger-based blockchain approach for monitoring supply chain performance and optimising both emission levels and operational costs in a synchronised fashion, producing a better outcome for the supply chain. We propose the blockchain approach for different production allocation problems within a multi-echelon supply chain (MESC) under a carbon taxation policy. As such, we couple recent advances in digitalisation of operations with increasingly stringent regulatory environmental policies. Specifically, with lead time considerations under emission rate constraints (imposed by a carbon taxation policy), we simultaneously consider the production, distribution and inventory control decisions in a production allocation-based MESC problem. The problem is then formulated as a Mixed Integer Non-Linear Programming (MINLP) model. We show that the distributed ledger-based blockchain approach minimises both total cost and carbon emissions. We then validate the feasibility of the proposed approach by comparing the results with a non-dominated sorting genetic algorithm (NSGA-II). The findings provide support for policymakers and supply chain executives alike.
While Blockchain is heralded as an industry ‘game changer’, empirical studies have yet to demonstrate how it has positive performance impacts. Building on emerging blockchain research and the information technology adoption literature, this study develops a research model that links blockchain adoption in the supply chain to competitive performance through process innovation and relational innovation. The study uses data collected from 344 supply chain professionals working in companies with Blockchain experience and partial least squares modelling to test the proposed model. The results support the research model and confirm that competitive performance is directly improved through blockchain adoption and also indirectly through blockchain-enabled process and relational innovation. Our findings advance practice and theory by contributing to the emerging literature on blockchain and enriching our understanding of the performance impacts of blockchain adoption and use in the supply chain.
Stefan Kurpjuweit, Christoph G. Schmidt, Maximilian Klöckner, Stephan M. Wagner
Additive manufacturing (AM) appears to be a particularly attractive use case for blockchain. This research combines inductive in‐depth interviews with the Delphi method to explore what potentials blockchain technology in AM creates, which adoption barriers firms need to overcome, and how supply chains will be affected by the integration of these two potentially disruptive technologies. The results suggest opportunities that are related to intellectual property (IP) rights management, the monitoring of printed parts throughout their lifecycle, process improvements, and data security. The most important barriers for blockchain adoption in AM are an absence of blockchain‐skilled specialists on the labor market, missing governance mechanisms, and a lack of firm‐internal technical expertise. By addressing important limitations of AM, blockchain is expected to improve the competitiveness of AM in parts’ production, catalyzing the trend toward more decentralized manufacturing resulting in more agile, resilient, and flexible supply chains and reduced logistics costs. Beyond that, blockchain‐based AM platforms are expected to enhance supply chain visibility, drive supply chain digitalization, support supply chain finance, and contribute to the emergence of shared factory systems.
Digital Transformation in Industry
Sustainable Supply Chain Management
Additive Manufacturing and 3D Printing Technologies
Purpose There is great interest in blockchain in the supply chain yet there is little empirical research to support the consideration of the technology. Ferdows (2018) calls for research aimed at learning from pioneers in the field and Gartner points out that the interest in blockchain holds similarities to the interest surrounding RFID 15 years ago. As a result, there may be opportunities to leverage insights from RFID research to inform the consideration of blockchain. The purpose of this paper is to explore how the Reyes et al. (2016) framework for the implementation of RFID may inform the consideration of blockchain in the supply chain. Design/methodology/approach A two-stage approach is used to explore RFID implementation considerations from the Reyes et al. (2016) RFID implementation framework, using an initial exploration of managers interested in blockchain using a focus group and a survey and to more in depth explore three case companies pioneering blockchain. Findings Several RFID implementation considerations can inform the consideration of blockchain but there are also differences in considering blockchain. A framework is developed that details considerations found to be relevant by implementation stage. Originality/value This paper adds to the limited amount of empirical research on blockchain in the supply chain and advances research beyond the consideration of use cases into the exploration of actual implementation of blockchain in the supply chain. The decision framework developed both leverages and nuances findings from RFID research and can inform managerial decision making. It also adds to research a multi-stage approach to implementation and uncovers rich opportunity to further learn from pioneers.
Murat Çolak, İ̇hsan Kaya, Betül Özkan, Ayşenur Budak · 5 authors
Nowadays, more companies are trying to implement blockchain technology (BT) that enables to increase the quality of the products/services to their supply chains in order to improve their performance. BT can be applied to different sectors according to their specific needs. Evaluation of BT with respect to sectors needs considering several factors and it can be considered as a multi criteria decision making (MCDM) problem. In this paper, the appropriateness of BT in Supply Chain Management (SCM) according to different sectors has been evaluated by using a MCDM methodology based on hesitant fuzzy sets (HFSs). The suggested MCDM methodology consists of Delphi method, hesitant fuzzy Analytic Hierarchy Process (HF-AHP) and Hesitant Fuzzy Technique for Order Preference by Similarity to Ideal Solution (HF-TOPSIS) methods. In the first stage, the criteria and sub-criteria utilized for performance evaluation of BT in supply chain management have been determined by using Delphi method. The weights of main and sub-criteria have been obtained through HF-AHP method and finally, the alternative sectors have been ranked according to results of HF-TOPSIS method. For this aim, a hierarchical MCDM problem that consists of 5 main and 17 sub-criteria has been created and the alternative sectors have been evaluated. As a result, medicine/drug and jewelry sectors have been respectively determined as the most and the least suitable alternatives in order to implement BT by means of the proposed HFSs based methodology. Finally, a sensitivity analysis has been conducted to show the importance of the main criteria weights on ranking of alternatives.
Rob Vluggen, Cees J. Gelderman, Janjaap Semeijn, Marc van Pelt
Public agencies feel the need to advance sustainability and use procurement as an instrument to do so. Many studies focused on internal forces, explaining the limited success of sustainable public procurement. This study focused on how external forces are able to hold municipalities accountable for sustainable procurement. Three mid-sized Dutch municipalities were investigated through an extensive document study and 34 semi-structured interviews. The results show minor legal pressure to enforce sustainable procurement. National legislation, guidelines and principles are considered non-binding, due to a lack of penalties in the case of non-compliance. Real pressure stems from lobbying by branch organizations and political pressure initiated by citizens. In contrast with the New Public Management principles, municipalities appear to place more emphasis on legal and financial accountability, in contrast to performance accountability. Accountants mainly focus on legitimacy and the finance department only monitors spending within budget. The hybrid organization of the procurement function seems to impede sustainability development. Only the larger projects are subject to sustainability requirements, set by centralized purchasing departments. Smaller projects, responsible for 2/3 of the total spend are managed by decentralized groups, remaining under the radar of sustainability policies.
Veronica Martinez, Michael Zhao, Ciprian Blujdea, Han Xia · 6 authors
Purpose The purpose of this paper is to investigate the effects of Blockchain on the customer order management process and operations. There is limited understanding of the use and benefits of Blockchain on supply chains, and less so at processes level. To date, there is no research on the effects of Blockchain in the customer order management process. Design/methodology/approach A twofold method is followed. First, a Blockchain is programmed and implemented in a large international firm. Second, a series of simulations are built based on three scenarios: current with no-Blockchain, 1-year and 5-year Blockchain use. Findings Blockchain improves the efficiency of the process: it reduces the number of operations, reduces the average time of orders in the system, reduces workload, shows traceability of orders and improves visibility to various supply chain participants. Research limitations/implications The research is based on a single in-depth case that has the scope to be tested in other contexts in future. Practical implications This is the first study that demonstrates with real data from an industrial firm the effects of Blockchain on the efficiency gains, reduction on the number of operations and human-processing savings. A detailed description of the Blockchain implementation is provided. Furthermore, this research shows a list of the resources and capabilities needed for building and maintaining a Blockchain in the context of supply chains. Originality/value This is the first study that demonstrates with real data from an industrial firm the effects of Blockchain on the efficiency gains, the reduction in the number of operations and human-processing savings. A detailed description of the Blockchain implementation is provided. This paper contributes to the resource-based view of the firm, by demonstrating two new competitive valuable capabilities and a new dynamic capability that organisations develop when implementing and using Blockchain in a supply–demand process. It also contributes to the information processing theory by highlighting the analytics capabilities required to sustain Blockchain-related operations.
Seyed Hamidreza Ghaffar, Matthew Burman, Nuhu Braimah
The challenges of sustainable construction, industrial growth and importance of resource efficiency are clearly recognised by the UK government and are now at the forefront of strategy and policy. A critical component of the government’s sustainability strategies concerns way in which construction and demolition waste (C&DW) is managed. In this study a mixed method approach was adopted to investigate current practices of C&DW management and circular construction (re-use, recycle and recovery of materials) concept awareness in the UK. Relevant stakeholders from the construction industry (contracting, demolition and C&DW organisations) were selected and their views solicited on arguments about circular construction to help establish common visions and further encourage sustainable behaviour across the sector. The study revealed that legislation by the government on the re-use and recycling threshold for every new project can substantially improve circularity within the built environment. More specifically, focus should be on smart dismantling of buildings and ways of optimising cost effective processes. This will enable fair competition between stakeholders and eventually lead to investments in innovative approaches for resource recovery from C&DW. Further incentives and appreciations from government should also be given to stakeholders who are innovating and setting benchmarks in circular construction. This can lead to harmonised technological and non-technological solutions, closed-loop material processes and a circular economy.
Pamela J. Zelbst, Kenneth W. Green, Victor E. Sower, Philip L. Bond
Purpose The purpose of this paper is to assess the combined impact of radio frequency identification (RFID), Industrial Internet of Things (IIoT) and Blockchain technologies on supply chain transparency (SCT). Design/methodology/approach Data from 211 US manufacturing managers is analyzed using a covariance-based structural equation modeling methodology. Findings The structural model fits the data relatively well. RFID technology directly and positively impact both IIoT and Blockchain technologies which, in turn, directly and positively impact SCT. RFID technology indirectly affects SCT through both IIoT technology and Blockchain technology. Research limitations/implications This study is the first to empirically assess the impact of RFID, IIoT and Blockchain technologies on SCT. First-wave empirical studies must be replicated to support generalization of the findings. Practical implications This study provides empirical evidence to support the implementation of a combination of RFID, IIoT and Blockchain technologies as infrastructure necessary to achieve end-to-end SCT. Originality/value New measurement scales for IIoT technology utilization and Blockchain technology utilization are developed and assessed for validity and reliability. This is the first study to assess the combined impact of RFID, IIoT and Blockchain technologies on SCT.
This chapter explores cases involving the use of blockchain-enabled technology in the waste management industry, particularly electronic waste management. In order to achieve the goals of a circular economy, adequate investment in waste management is important globally. However, little is known or understood about the role of blockchain technology within the waste management industry. In this chapter, a review of the application of blockchain in the waste management supply chain is presented, and its impact in terms of achieving sustainability goals, in particular the traceability of waste within the closed loop supply chain, is identified. In addition, an overview is provided of companies such as Provenance, Minespider and Bundel, among others applying these technologies. It is recommended that in order to benefit from blockchain technology within the waste management industry, all stakeholders will need to help create ecosystems that can make more effective use of emerging technologies in this sector.
Sajjad Rahmanzadeh, Mir Saman Pishvaee, Mohammad Reza Rasouli
In globalised manufacturing and production environments, companies increasingly tend to exploit public contribution advantages within designing, manufacturing and marketing processes. To be benefited from outbound capabilities, this paper presents a tactical supply chain planning model to integrate the designing process in the form of open innovation within the supply chain main processes. In this regard, a fuzzy mathematical model is proposed to optimise the tactical decisions according to supply chain objectives and open innovation considerations. On the other hand, intellectual property issues and protecting the rights of innovators are significant concerns that sometimes avoid companies to be engaged in open innovation initiatives. Therefore, this paper proposes a registering mechanism in which the ideas and creative works are collected, refined and finally approved within a blockchain platform. Furthermore, in order to deal with epistemic environmental uncertainty, the fuzzy set theory is utilised. To investigate the applicability of the developed model, a case study in home appliances domain is employed. The results show that the company can achieve favourable designs by spending approximately 1% of the supply chain total cost. Additionally, benefiting the registering mechanism can decrease the cost of using non-original designs more than 41%.
Mehrdokht Pournader, Yangyan Shi, Stefan Seuring, S.C. Lenny Koh
This paper presents current academic and industrial frontiers on blockchain application in supply chain, logistics and transport management. We conduct a systematic review of the literature and find four main clusters in the co-citation analysis, namely Technology, Trust, Trade, and Traceability/Transparency. For each cluster, and based on the pool of articles included in it, we apply an inductive method of reasoning and discuss the emerging themes and applications of blockchains for supply chains, logistics and transport. We conclude by discussing the main themes for future research on blockchain technology and its application in industry and services.
Ravi Chandra Koirala, Keshav Dahal, Santiago Matalonga, Rameshwar Rijal
Blockchain technology as a foundation of distributed ledger offers an innovative platform for transparent and efficient transaction in Reverse Auction Bidding process in a supply chain for procuring carriers. This research work provides background and motivation for the use of Blockchain in such domains. A supply chain model is realized by deploying a smart contract in Blockchain to procure carrier. The model considers multi-attribute of the carriers while procuring one through the reverse auction bidding process. This research work validates the Blockchain-enabled supply chain model by simulating a supply chain proposed for a Dairy Company. Data to calibrate the simulation was taken from a published case study on Reverse Auctions in the supply chain. The result shows that the model is a feasible scheme and its features will offset the challenges of current RAB process making it more efficient and transparent.
Blockchain is an emergent technology that has attracted practitioner attention in the supply chain domain. Multiple motivators lead companies to incorporate blockchain technology into their supply chain. However, a number of barriers and challenges may impede the successful adoption of blockchains. The purpose of this paper is to explore how a variety of motivators and barriers are perceived by different companies from different industries. This paper summarizes survey data gathered from 173 respondents associated with the association of supply chain management, formerly APICS. Summary statistics on blockchain adoption by various types of companies are provided to help practitioners benchmark current practice. The paper presents preliminary findings on these dimensions with some insights provided.
Research on blockchain technology implementation within civil engineering is quickly emerging. The use of blockchain for the integration of the material and economic flows within construction supply chain – thus creating a new digital business model for the related actors – to enhance a construction project’s production, logistics management, and constructability, has been only scarcely investigated. In this paper, this shortage is documented through a comprehensive literature review. Then, the potential of Swedish independent third-party logistics consultants as a fertile ground for such a digital business model, is examined. Finally, conclusions about the pursuance of this potential paradigm shift are drawn.
Francesco Longo, Letizia Nicoletti, Antonio Padovano, Gianfranco d’Atri · 5 authors
Despite Information and Communication Technologies (ICT) have reduced the information asymmetry and increased the degree of interorganizational collaboration, the companies participating a supply chain are less inclined to share data when information is sensible and partners cannot be fully trusted. In such a context, Blockchain is a decentralized certificate authority that may provide economic and operational benefits but companies operating in a supply chain claim to have little knowledge about Blockchain due to its novelty and to the lack of use cases and application studies. In this work, a software connector has been designed and developed to connect an Ethereum-like blockchain with the enterprises' information systems to allow companies to share information with their partners with different levels of visibility and to check data authenticity, integrity and invariability over time through the blockchain, thus building trust. In order to explore the potential of deploying the blockchain in a supply chain, a simulation model has been developed to recreate the supply chain operations and integrated with the blockchain through the same software connector to carry out a scenario statistical analysis. Application results shows how blockchain technology is a convenient instrument to overcome collaboration and trust issues in a supply chain, to increase the supply chain overall performance, to minimize the negative consequences of information asymmetry over the echelons of a supply chain but also to discourage companies from any misconduct (e.g. counterfeiting data or low data accuracy).