BLOCKCHAIN TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT: A COMPREHENSIVE REVIEW

Abstract

This paper explores the transformative potential of blockchain technology in addressing inefficiencies, opaque processes, and fraud susceptibility in the traditional supply chain ecosystem. Blockchain technology, with its distributed ledger technology (DLT), provides secure, transparent, and tamper-proof record-keeping capabilities throughout the supply chain. Its applications include traceability and transparency, inventory and logistics optimization, smart contracts for automated payments, and counterfeit prevention and brand protection. Blockchain's decentralized and immutable ledger facilitates traceability, offering an unalterable record of the journey of goods. Real-time visibility into inventory levels and locations empowers better forecasting, demand planning, and logistics management, leading to cost reductions and improved efficiency in warehousing, delivery routes, and resource utilization. Smart contracts enable automated, secure, and transparent execution of predefined contractual conditions, resulting in efficiency gains, cost savings, and contractual compliance. Blockchain also creates a secure digital fingerprint for products, combating counterfeiting and ensuring product authenticity throughout the supply chain. The case study of Everledger in the diamond industry exemplifies how blockchain technology contributes to ethical sourcing and reduces the risk of conflict diamonds. However, blockchain faces challenges such as scalability, regulatory uncertainties, cost, and privacy concerns. Future directions involve integrating blockchain with artificial intelligence and the Internet of Things, developing industry-specific blockchain solutions, and exploring hybrid blockchain models. By addressing these challenges through collaborative research, development, and policy initiatives, stakeholders can unlock the full potential of blockchain in supply chain management, creating a resilient and robust supply chain ecosystem.
 Keywords: Blockchain, Supply Chain Management, Traceability, Efficiency, Trust, Case Studies, Best Practices, Agriculture, Pharmaceuticals, Manufacturing, Challenges, Future Directions