Blockchain-based decentralised material management system for construction projects

Abstract

The prevailing practices in construction supply chain management are characterised by significant challenges, including fragmentation, a lack of trust among stakeholders, and restricted information sharing. This research introduces a blockchain-based integrated system for managing construction materials and inventory to enhance the traceability and transparency of shared supply chain material information. This initiative will foster a collaborative and open supply chain environment among stakeholders and effectively address material delays, resulting in smoother project operations and minimized disruptions, thus promoting operational efficiency. Furthermore, the system's potential to substantially reduce the incidence of legal disputes is underpinned by the secure and tamper-proof storage of information within shared ledgers, fostering a high level of accountability and trustworthiness. The integration of the Economic Order Quantity (EOQ) approach within blockchain smart contracts streamlines procurement processes, leading to a noteworthy reduction in purchase orders and associated overhead costs. The study employs a Design Science Research (DSR) approach to create a decentralised construction supply chain system, monitoring changes in material information during the supply process and addressing uncertainties associated with managing construction material inventory. The proposed system empowers project stakeholders by providing real-time material information access, resulting in improved decision-making and a reduction in material delays. Additionally, the construction material management-based blockchain and smart system enables project parties to efficiently handle inventory for complex projects, interconnecting all supply chain tasks within an integrated smart contract. The usability of the proposed solution was assessed using a usability test technique, with participants confirming its applicability in construction environments. They highlighted key benefits, including reduced material purchasing costs, decreased legal disputes among project stakeholders, and improved decision-making.