Blockchain Technology for Supply Chains: A Guidebook

This guidebook represents an elaborative study of blockchain technology and its potential in common supply chain management practices. Our aim is to create an easy-to-read handbook with which supply chain management professionals can develop a basic understanding of blockchain and how it can be applied within the industry. This is achieved through a practical approach by which we shed light on some of the key value drivers that blockchain can provide in modern supply chains, while elaborating on how the technology is already being tested in industry. Accordingly, this paper aims at enhancing the reader’s understanding of blockchain and how it can be applied in a supply chain context. While blockchain is still in its early adoption stage, the potential of the technology continues to prove itself through various pilot projects around the world. In particular, the combination of blockchain and Internet of Things (IoT)1 devices have proven particularly promising as it provides an automated and secure way to connect physical assets to the cloud. In multiple pilot projects, blockchain has been successful in facilitating end-to-end supply chain visibility. Blockchain is, however, not necessarily the right solution for all companies when it comes to creating supply chain visibility. Therefore, it is important for managers to thoroughly understand the fit between their supply chain and the desired technology, before considering implementing a blockchain solution. Firstly, the guidebook provides an understanding of the main elements of blockchain and its characteristics. In this section, we describe blockchain from both a technical and a practical point of view. Secondly, the characteristics of blockchain are analyzed in view of supply chain management and an overview of the various benefits it may provide, if implemented successfully, is presented. This part is complemented by other new technologies such as IoT, where we illustrate how blockchain can create synergies with other existing technologies that are used in the transport industry. This section concludes with an outline of challenges that are yet to be resolved regarding blockchain and its adoption in the supply chain industry. Thirdly, the guidebook discusses various real-life business cases to provide an overview of how blockchain is used to improve current processes. Finally, this guidebook provides an analysis of the current adoption stage of blockchain before rounding off with some practical steps for management to consider before commencing their first blockchain project.