Blockchain: an ambitious technology for managing SCM

Abstract

Trust has become a critical management element upstream (manufacturers, producers, etc.) and downstream (distributors, wholesalers, etc.) of SCM, especially in security-sensitive sectors. SCMs are increasingly complex, and SC members must store and manage a huge amount of related information to provide evidence of regulatory compliance to national authorities and the most demanding customers. The complexity and fragmentation of modern SC networks impede the development of robust traceability and transparency mechanisms. In this article, a trustless and secure distributed architecture for SC traceability is presented. To assess the feasibility of a blockchain-based SCM approach, a case study on the SC traceability of some companies is presented. The applicability of the model is further illustrated by the development of fully functional smart contracts and a specific private blockchain. In addition, the various links between the proposed blockchain-based model and its managerial implications are presented.