Blockchain Technology Implementation in Supply Chain Management: A Literature Review

Abstract

This paper aims to comprehensively review the main benefits, limitations, and challenges associated with the uptake of Blockchain technology in supply chain management (SCM). The study utilizes the literature review method, examining articles published from 2016 to 2022 and exploring the factors influencing the adoption and implementation of Blockchain in SCM. Multiple scholarly insights have shown no more hacking or cherry picking of options given for presenting data with high confidence and, therefore, reliability, as well as an ability to see everything in a highly limited way. An SCM looking at these multi-party evolutionary models shows that for Blockchain, the key advantages center on significantly increased security, confidentiality, traceability, transparency, data accuracy, privacy, efficiency, accountability, and trust. In contrast, the review has also detailed several limitations and challenges that must be overcome by firms and industries looking to adopt Blockchain within their SCM processes, which include problems with scaling, lower performance as a result of interoperability issues, legal and regulatory matters, very high initial implementation and ongoing maintenance costs, a struggle with standardization of the technology and the needed surveillance of this space, avoidance of technology adoption because of trust, the substantial energy used, low awareness, complexity of integrating with existing systems, being in its last mile in partnerships, and privacy. Even with this potential to transform and be disrupted across industry and its sectors, there are still very significant challenges for Blockchain. For those looking to actually utilize SCM and other sectors, understanding this from a variety of perspectives is of great interest to understand if the technology is fit for that sector and what strategies or networks need to be established or linked into with existing firms. Regardless, if these challenges can be overcome and responded to, then the greater protection and efficiency of current and future SCM processes will not only occur, but it can be the first significant node for broader industry-wide innovation and gains in efficiency.