Creating Lean and Agile Supply Chains with Blockchain

Abstract

This paper aims to explore how blockchain technology can help us to achieve supply chains that are agile but also lean, which is also demanded by the modern business environment. A role playing simulation was used to evaluate the benefits provided by different levels of visibility in a typical supply chain. A distributed ledger enabling supply chain visibility was designed. A supply chain performance framework was developed in order to measure the supply chain performance from both lean and agile aspects. The results show a significant correlation in performance with the degree of visibility, but it is not a linear relationship. An effective LeAgile supply chain can be achieved with the enhancement of visibility. In order to implement visibility, an appropriate information sharing frequency (drumbeat) is needed. Blockchain allows users to more securely and transparently track all types of transactions, to improve Supply Chain Visibility. We also find the complex relationship between trust and visibility. This is one of the first papers, taking human factors into consideration, to investigate how blockchain technology can be used to enhance supply chain visibility, which is needed for leagile supply chain performance.