BLOCKCHAIN TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT

Abstract

This paper aims to fill the gap in existing research by examining the impact of blockchain technology on supply chain management, particularly its ability to retrospectively trace events in the chain. For example, in pharmaceuticals, blockchain automatically records information like expiration dates, reducing the need for human involvement. By implementing this backward technology, we've simplified processes for suppliers and manufacturers, allowing the system to identify defective or expired items autonomously, saving time and costs. Previously, the supply chain operated as a one-way system without return options, but now, with blockchain integration, relevant parties are informed about necessary replacements from the manufacturer's end. Blockchain's integration into supply chain management is a significant advancement, offering unparalleled transparency, traceability, and security in logistics and distribution. This article explores how blockchain can revolutionize established supply chain practices, delving into applications like tracing goods from origin to destination, using smart contracts for automated agreements, and secure data exchange while protecting privacy. Case studies highlight advantages such as reduced expenses, risks, and improved compliance. Blockchain, as a decentralized ledger system, provides instant, unchangeable record-keeping and cryptographic validation, instilling confidence among stakeholders. In supply chain management, this means identifiable product origins, better tracking, less fraud, and quicker dispute resolution. However, challenges like scalability, energy use, and network interoperability exist, underscoring the need for industry collaboration and standardization efforts