Blockchain Technology in Supply Chain Management: Enhancing Transparency and Efficiency

Abstract

One such tool is the blockchain technology, which has been seen as a game-changer in supply chain management (SCM) having ability to solve many problems from sharing limited visibility and traceability information with trading partners solving big operational inefficiencies. This paper investigates the applicability of blockchain to improve transparency, cost efficiency and security in SCM. The basic premise that underlines blockchains application for enabling secure data handling stems from its decentralized approach based on peer-to-peer networks which preserves both integrity and traceability. This study analyzes a large body of literature and multiple case studies, like the IBM and Maersk's TradeLens or Walmart's food traceability system among others to therefore underline blockchain potential role in process optimization (e.g., product logistics), fraud prevention (broker-omission) and enhanced real-product provenance. To get there, significant challenges around costs of implementation, complex technologies as well as regulatory confusion need to be resolved. The results show that despite these challenges, blockchain can enhance SCM considerably by introducing a secure yet transparent abstraction for global supply chain execution.