Value Creation through Blockchain Technology in Supply Chain Management

Abstract

In the last several years, digitization in supply chain management (SCM) has been primarily focused. The digital transformation has brought tremendous value to the supply chain organizations. As published in the article “How to Achieve Six-Figure Benefits from Digitizing Paper-Based Supply Chain Operations, 2018”, it has been proven that digital transformation has improved efficiencies and productivity in the supply chain operations by leaps and bounds. With the foundation of the Digital transformation now the current era of fast communication needs to use the blockchain technology in SCM. The primary objective of this paper is to focus on what values Blockchain in SCM can add for the customer and the business community. Using blockchain in SCM provides an incredible advantage of securing /retaining the origin of multiple entities (data), help detecting fraud, improve inventory management, detect the issues earlier in the SCM cycle, help in fast-tracking of goods (Logistics), and build the customer trust. As an example blockchain in the food industry will help to track every step in the supply chain cycle and improve the visibility of goods, can help to improve the efficiency and have less wastage/loss because of the shelf-life and inconsistencies in the SCM and provide real value-added information to the consumer. For example, by reading a simple QR code with a smartphone, data such as an animal’s date of birth, use of antibiotics, vaccinations, and location where the livestock was harvested can easily be conveyed to the consumer. In food, for example, a retailer would know with whom his supplier has had dealings. Additionally, since transactions are not stored in any single location, it is almost impossible to hack the information.