Abstract
Digital transformation of the world economy and the rapid growth of information flows have led to the implementation of innovative technologies in the processes of business management. Data analysis, risk assessment technologies and decision support systems enable companies to adapt to modern challenges.In the process of globalization, a consumer has the priority due to which quality of service and timely delivery of the required products determine the competition among the companies. All participants of the supply process, including logistics service providers, have traditionally focused on optimizing process management and minimizing supply chain costs [1]. The determining factor of supply efficiency from the perspective of procurement and logistics is the uninterrupted supply of raw materials and semi-finished goods that depends on the selection of a reliable supplier, as well as the continuous improvement of the quality of materials and the reliability of the customer-supplier relationship. The purpose of this article is to analyze use of blockchain technology to improve reliability of supply chains, whereas the rationale behind the management of business processes and the contractual obligation between the parties are verified cryptographically, using a smart contract.
Highlights
The management of material flows in the supply chain is related to the management of financial flows
The customer pays the service fee at the time of receipt of the product, but the parties involved in the supply chain may have time delays due to several issues, for example, when cargo is being transported, documents are checked at the several customs points and the original documentation is required, especially such as a certificate of origin (EUR1), export license (EX1), waybill, etc
The usage of blockchain technology gives a wide range of opportunities to the parties involved in the supply chain, eliminates mistrust, secures and makes the ongoing business processes transparent and puts the parties involved in the supply chain in a superior position, because without the expense of intermediaries and additional financial resources, they can determine the terms of cooperation and security issues based on a smart contract, which on one hand relies on the data stored in the blockchain and on the other hand, participates in updating the blockchain database itself
Summary
IMPROVE EFFICIENCY AND RELIABILITY OF SUPPLY CHAINS USING SMART CONTRACTS Giorgi Doborjginidze, Lily Petriashvili, Mariam Inaishvili Giorgi Doborjginidze, Lily Petriashvili, Mariam Inaishvili. (2020) Improve Efficiency and Reliability of Supply Chains Using Smart Contracts. IMPROVE EFFICIENCY AND RELIABILITY OF SUPPLY CHAINS USING SMART CONTRACTS Giorgi Doborjginidze, Lily Petriashvili, Mariam Inaishvili Giorgi Doborjginidze, Lily Petriashvili, Mariam Inaishvili. (2020) Improve Efficiency and Reliability of Supply Chains Using Smart Contracts.
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