Blockchain opportunities in supply chain

Slawomir Wycislak
2021 Academia Letters  
Blockchain has the potential to create new foundations for economic and social systems and building economic coordination using distributed ledgers augmented with computational features such as money (cryptocurrencies), programmable contracts (e.g., smart contracts), and organizations made of software (DAOs, or distributed autonomous organizations). It redefines how data is stored, updates, and moved across networks. Instead of trusted third parties incentivizing appropriate behavior of
more » ... ants, it uses cryptographic techniques. Blockchain is a peer-to-peer network architecture meaning that all participants are equal in their role on the network, and its topology is flat; in other words, unlike, for example, a client's server, it is without hierarchy. It is enabling an entirely new way to write and deploy applications. It has the potential to improve online security and trust. For the supply chain, blockchain is a ground-breaking innovative solution set to transform supply chain activities. Scholars have heavily discussed blockchain applications in the supply chain, and there are calls on in-depth identifying how to bridge the gap between expectations on blockchain opportunities and its successful implementations in the supply chain, as well as theoretical considerations and practical successful case studies (Treiblmaier, 2018) . One fast-moving consumer good company with fully outsourced transport operations identified blockchain opportunities in a transportation network. The main issue is visibility on the key performance indicators, including on-time delivery and on-time collection. Lack of visibility regarding the on-time performance of carriers results in internal customers issues mirrored with poor service of internal customers, including factories and end customers. Entities involved in the shipment process waste time finding out where a shipment is since there is no single version of truth amongst them. No single version of truth translates into exceptions and informal practices in order to make the operations work. Exceptions attract over 80% of attention, stress, and workload for parties involved (de-
doi:10.20935/al1198 fatcat:w3exbg43krh6vlq37gyyepo7qa