Architecture to Enhance Transparency in Supply Chain Management using Blockchain Technology

Abstract

Precise information flow in a supply chain (SC) improves profitability. Distorted information in SC results in coordination and transaction issues that diminish trust between SC partners. The prime objective of the present study is to enhance transparency in SC for both suppliers and consumers and boost legitimate coordination within the SC network using Blockchain Technology (BT). BT is a tool having an open-source, decentralized, and distributed database for storing transaction information. It allows two parties to perform direct transactions using their distributed ledgers without the interference of a centralized third party to achieving more transparent transactions than traditional systems. Consequently, the architecture of BT in SC has been developed based on factors identified from the literature review that leads to offering tracking and monitoring of entire SC. Subsequently, the blockchain architecture has been tested considering transactions between manufacturer, distributor, retailer, and customer to accomplish real-time transparency. Accordingly, it has been observed that transaction errors have been minimized, transparency has been improved in SC of the manufacturing industry using BT. Moreover, this paper provides a productive relationship between BT and SC management.