Exploring Blockchain Adoption Supply Chains: Opportunities and Challenges

Abstract

In modern supply chains, acquisition often occurs with the involvement of a network of organizations. The resilience, efficiency, and effectiveness of supply networks are crucial for the viability of acquisition. Disruptions in the supply chain require adequate communication infrastructure to ensure resilience. However, supply networks do not have a shared information technology infrastructure that ensures effective communication. Therefore decision-makers seek new methodologies for supply chain management resilience. Blockchain technology offers new decentralization and service delegation methods that can transform supply chains and result in a more flexible, efficient, and effective supply chain. This report presents a framework for the application of Blockchain technology in supply chain management to improve resilience. In the first part of this study, we discuss the limitations and challenges of the supply chain system that can be addressed by integrating Blockchain technology. In the second part, the report provides a comprehensive Blockchain-based supply chain network management framework. The application of the proposed framework is demonstrated using modeling and simulation. The differences in the simulation scenarios can provide guidance for decision-makers who consider using the developed framework during the acquisition process.