Blockchain-Enabled Smart Contract Architecture in Supply Chain Design

Abstract

Emerging information technologies are making a powerful impact by challenging traditional business methods. Companies are adopting these technologies to make their supply chains more efficient and effective while making their business more profitable. Blockchain is no exception when it comes to the technological revolution helping businesses to be more transparent and better connected whilst enhancing the safety and security of operations. The world came to know Blockchain as a decentralised and distributed ledger system for financial transactions that became the foundation for Cryptocurrencies. However, its applications are not only limited to payment management. Researchers have also been exploring Blockchain’s potential for disrupting supply chains to make them resilient and agile, improve visibility and transparency, mitigate bullwhips, and improve supply chain coordination between suppliers and manufacturers (e.g., increased efficiency and speed). In this book chapter, we review the current literature and reports from international peer-reviewed journals and independent consulting firms and articulate a comprehensive standing of blockchain technology in contractual processes. Furthermore, we highlight the impact of Blockchain-enabled smart contracts in supply chain design and outline opportunities and certain caveats by presenting a SWOT analysis. Finally, we map the architecture of contractual processes within a supply chain to highlight the critical differences between traditional and Blockchain-enabled business progressions. This chapter can help businesses in understanding how Blockchain can improve their contractual processes and make procurement and payments a swift transaction.