Transformation of Supply Chain Activities in Blockchain Environment

Abstract

Blockchain is one of the breakthrough technologies having the potential to dramatically transform the supply chains. In this study, potential impact of the blockchain technology on the supply chain management (SCM) will be investigated to reveal the nature of transformation that it can result in the domain. Based on a comprehensive review of recent literature at the intersection of blockchain and SCM, effects of blockchain on SCM are analysed under four titles: (a) basic characteristics, (b) transparency/visibility and traceability, (c) automated controls with smart contracts; and (d) trust-building and collaboration. Findings reveal that the technology is expected to provide accurate and trustable transaction infrastructure as well as true visibility and traceability across partners. With its potential to provide a transparent and trustable multi-partner ecosystem, it appears that blockchain will accelerate and strengthen the realization of a collaborative, IT-based network paradigm. Hence, findings of the study support that the blockchain technology will be a critical enabler of the transformation of the supply chains into tightly coupled, transparent collaborative ecosystems. © 2020, Springer Nature Switzerland AG.