Implementation of Blockchain Technologies to Avoid Fraud in Supply Chain

Abstract

In recent times, with technological advancements, businesses are looking at the digital transformation to create lucrative and sustainable methodologies to gain a competitive advantage over the competitors. With the awakening of consumers and stakeholders about the visible fraud in the operational activities and supply chain, the expectations from consumers regarding the supply chain are rapidly changing. Supply chain transparency, traceability, sustainability, and resilience have gained a lot of attention in recent years to end-users which potentially enables them to trace the goods and services flow and all the processes involved in manufacturing the raw materials to the final products. Maintaining a transparent supply chain has become a necessity rather than an additional service provided to the government, consumers, and other stakeholders. Companies around the globe are shifting towards technological advancements in the supply chain for effective utilization of resources and processes to gain an advantage by provisioning visibility in the Supply Chain Management (SCM). With the ability to maintain an immutable, distributed, unalterable ledger, Blockchain can be considered as one of the revolutionizing technologies in digital supply chain management. Blockchain technology can be used to overcome potential threats and vulnerabilities by channelizing the flow of information, thereby enhancing transparency and traceability in the process. Its potential can drive the SCM operations less costly and enrich the customer experience through transparency and traceability. In this paper we have proposed a novel framewok to avoid fraud in supply chain by using blockchain technology. Blockchain technology is considered more secure, however certain vulnerabilities may be possible due to service layers provided on the top of blockchain technology and it is not because of the core technology. Further scope to implement the proposed framework in the field of supply chain management.