Disruption mitigation in the semiconductors supply chain by using public blockchains

Abstract

Supply chain management has become increasingly complex, leading to information loss and delayed transmission, exacerbating the bullwhip effect. Furthermore, the need for more reliable information storage, traceability, and accountability has slowed supply chain management. In this context, blockchain technology (BCT) solves the bullwhip effect problem, as it supports distributed networking, information synchronization among nodes, digital encryption, traceable information, and unchangeable block content. This paper proposes using public blockchain to solve the bullwhip effect problem in the supply chain (SC), which has yet to be discussed in published academic research papers. To this end, a framework has been developed to determine the readiness of a supply chain for blockchain adoption. This framework includes a checklist to evaluate the motivation, timing, and appropriate platform for adopting blockchain. The framework has been validated using a case study of personal computer devices, which were affected by the Covid-19 pandemic and resulted in semiconductors supply chain disruption. The study involved polling four executives The study involved polling four executives (of large organizations in Egypt and some Middle Eastern countries) representing different stages in the supply chain, they are retail, distribution, manufacturing, and supply. The results showed that while the executives recognized the benefits of adopting blockchain, they were still determining if it was the right time for adoption and did not see the technology ready for their supply chains. Finally, some public blockchain platforms were introduced to help businesses choose the most suitable platform for adoption.