Leveraging Blockchain-Based Smart Contracts in the Management of Supply Chain: Evidence from Carrefour UAE

Abstract

The fourth industrial revolution brought digital solutions to modernize how firms manufacture and distribute their products. A fusion of artificial intelligence advances is utilized to blur boundaries between the biological, physical, and digital worlds. Firms are redesigning their supply chains to attain high levels of operational effectiveness. Supply chain activities are crucial for the success of manufacturing firms. Blockchain is a promising technology for managing the supply chain efficiently. Blockchain is an immutable, distributed ledger to record transactions digitally. A smart contract is a coded agreement between two parties that executes an exchange automatically in the absence of trusted authorities. This study aimed to explore the prospects of utilizing blockchain and smart contracts as empowering technologies for food supply chain management. The study used a case study approach. Blockchain has the potential to play a vital role in almost every aspect of the future. Implementing blockchain in the supply chain will enhance the transparency, traceability, and flow of goods and services across the supply chain. Additionally, a blockchain-based smart contract will facilitate, validate and impose negotiation and execution agreements among multiple parties in real-time, enhancing the collaboration and quality of management. Carrefour UAE successfully joined IBM Food Trust. Carrefour's initiative came after growing customers' concerns about product provenance and ethical sourcing. The Carrefour initiative helped to resolve the problem of trust in the food supply. Improvements in the supply chain are expected to happen, including enhanced efficiency, traceability, reduced execution risk, low cost, etc.