Abstract
A robust traceability system would help organizations in inventory optimization reduce lead time and improve customer service and quality which further enables the organizations to be a leader in their industry sector. This research study analyzes the challenges faced by the automotive industry in its supply chain operations. Further, the traceability issues and waiting time at different nodes of the supply chain are considered to be priority issues that affect the overall supply chain efficiency in the automotive supply chain. After studying the existing blockchain architectures and their implementation methodology, this study proposes a new blockchain-based architecture to improve traceability and reduce waiting time for the automotive supply chain. A hyper ledger fabric-based blockchain architecture is developed to track the ownership transfers in inbound and outbound logistics. The simulation results of the proposed hyper ledger fabric-based blockchain architecture show that there is an improvement in the traceability of items at different nodes of the supply chain that enhances the Inventory Quality Ratio (IQR) and the mean waiting time is reduced at the factory, wholesaler, and retailer, which thereby improves the overall supply chain efficiency. The blockchain embedded supply chain is more capable to eliminate the risks and uncertainties associated with the automotive supply chain. The benefits of adopting blockchain technology in the automotive supply chain are also described. The developed blockchain-based framework is capable to get more visibility into goods movement and inventory status in automotive supply chains.
Highlights
Introduction iationsAs industries around the globe expand, their supply chains have become complex and defragmented [1,2,3]
The need for blockchain integration is being endorsed by some organizations, this view is still not shared by many companies
This study aimed at identifying traceability issues at various nodes of an automotive supply chain
Summary
As industries around the globe expand, their supply chains have become complex and defragmented [1,2,3]. Despite enormous investments being made to improve the part tracking or value tracking in supply chains, most companies still have a limited amount of part tracking mechanisms [4,5,6]. Many organizations have a significant gap between systems employed within a company and across companies. A traceability system is necessary to obtain a reduction in costs, waiting time, and an overall improvement in quality and customer service, which would further enable organizations to develop a competitive advantage [7,8]. Consumers nowadays are interested in knowing whether the product they received comes from an ethical background. In recent days the importance of automation within the supply chain process has increased [9]
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