By A Seetharaman
Blockchain technology has been successful with its application in cryptocurrencies (for example, BITCOIN). It has been recognised as a novel technology for removing the intermediaries in various sectors such as finances and the supply chain [5]. Blockchain increases efficiencies by reducing the overall cost of transactions [28]. Blockchain is a distributed ledger platform capable of reshaping multiple businesses globally. Supply chain management is the backbone of all businesses worldwide. It begins with the raw material procurement, product manufacturing, product distribution through wholesalers, retailers and other channels, and product delivery to the consumers. Supply chain networks around the world are complex and require multiple stakeholders working in synergy. These networks face multiple issues such as trust, traceability, interoperability, and sustainability. Blockchain technology, with its elements of decentralisation, immutability, and enhanced security, is aimed at establishing trust in supply chain ecosystems. Research problems and objectives are inferred from the scope of future research during the literature review.
- SCOPE OF STUDY
The scope of this study is restricted to qualitative analysis of the blockchain platform usage in supply chain ecosystem. The conceptual framework has been derived after critically evaluating independent factors, research problems, research objectives, outcomes, and a deeper analysis of the outcomes. The current research gaps are used to formulate independent factors, problem statements and research objectives for studying the usage of blockchain based systems in supply chain environment. As part of qualitative analysis, propositions are inferred based on the outcomes.
This study is conducted by evaluating independent variables inducing the usage of blockchain based platforms in supply chain ecosystem. The independent variables are:
- Interoperability
- Smart logistics
- Sustainability
- RESEARCH FRAMEWORK
Indicated conceptual framework has been used for evaluating the sustainable supply chain ecosystem based on the concept of smart logistics enabled through interoperability of blockchain networks. Research framework depicts the significant relationship of Interoperability of Blockchain Network and Smart Logistics with Sustainable Supply Chian Ecosystem.
Interoperability of blockchain network ensures that there is better collaboration among the supply chain stakeholders, which results in establishing trust in the system. Blockchain platform aims at bringing security of data due to decentralized mode of operating. The data is concurrently shared with all stakeholders, which confirms the security of the data environment. Blockchain network is resilient in nature as it can recover from any data losses with multiple copies of it available at different nodes. Interoperability of blockchain network improves the overall reliability in the supply chain ecosystem, also it creates the flexibility for multiple stakeholders to be part of this complete ecosystem. Smart logistics in supply chain management is aided through blockchain network. It can be built on integrated platform of blockchain network. It is developed on agile based systems using multiple digital technologies such as smart contract, AI, IOT and many more. Smart logistics system targets real time tracking environment driven through data.
- DISCUSSION, ANALYSIS AND OUTCOMES
- Interoperability- Sharing Information Among Stakeholders Leading to Trust and Collaboration
Supply chain Performance System use smart contract. This envisages the concepts of strategy starting from Diagnosis, Vision, Mission, Corporate Objectives, Action Plan and Strategy. The Strategy is implemented with the help of Balanced Score Card by using Score Model.
Outcome:
Using blockchain based smart contract system in supply chain environment creates interoperability among supply chain partners, and its outcome is measured through performance metrics dashboards.
Proposition – (P1 ):
The usage of blockchain based platform in supply chain ecosystem improves interoperability among stakeholders by establishing trust and collaboration in the supply chain environment.
- Smart Logistics – Ensuring Traceability of Products in Supply Chain Management
Smart Logistics ensures Traceability of Products in Supply Chain Management.
Outcome:
Usage of smart contract features of Blockchain platform coupled with IoT& AI in logistics and supply chain area enables predictive maintenance resulting in better logistics solutions.
Proposition – (P2 ):
Blockchain platform adoption in supply chain management results in better predictive maintenance by addressing logistic issues of missing traceability.
- Sustainability – Establishing Ethical Practices and Transparency in Supply Chain ecosystem
Sustainability in the supply chain environment can be measured on three major fronts – financial, environmental, and social front. The concerns for sustainability in supply chain ecosystem is evident. It is due to the absence of transparency and ethical practices among the supply chain partners. Blockchain technology, with its feature of immutability, ensures that transparency is maintained in the supply chain system.
Innovation helps Improved internal process which reduce employee’s attrition and improved talent retention which in turn leads to quality products and customer satisfaction. These processes lead to improved financial results, namely higher profits, and revenues.
Outcome:
The sustainability issues among supply chain stakeholders can be addressed by usage of blockchain system in supply chain management by allowing optimum resource utilisation.
Proposition – (P3 ):
Usage of blockchain in supply chain ecosystem results in sustainability practices among stakeholders.
- CONTRIBUTION TO INDUSTRY
Blockchain technology helps in addressing the issues of the supply chain ecosystem by bringing all stakeholders such as raw material suppliers, manufacturers, distributors, wholesalers, retailers, and end-users/consumers onto the same platform.
- CONCLUSION
Blockchain technology is currently in the nascent stages of adoption in supply chain management. It has more applicability in this area, as it can solve some supply chain management issues. Blockchain technology can be used for better interoperability in a supply chain platform by sharing information among stakeholders, leading to trust and collaboration in the ecosystem. Effectiveness can be measured by establishing performance metrics. Blockchain technology is an enabler for smart logistics via easy product traceability, and a blockchain-based logistics system results in better predictive maintenance. The usage of Blockchain Platform in supply chain ecosystem creates sustainability practices among stakeholders. Interoperability features of blockchain such as security, resilience, reliability, flexibility, and collaboration results in driving smart logistics for real time tracking of products through integrated platform. Blockchain establishes sustainable supply chain practices by building transparency among ecosystem stakeholders.
The author is dean, research, S P Jain School of Global Management
