Blockchain technology in supply chain management: transparency, security, and efficiency challenges

Abstract

Supply chain management (SCM) is a core corporate activity responsible for moving commodities and services from one point to another through a variety of stakeholders. The traditional SCM is based on a centralized approach managed at the central headquarters, with all other sub-offices receiving instructions from the main office. Some major issues with current SCM systems include security, transactional transparency, traceability, stakeholder involvement, product counterfeiting, additional delays, fraud, and instabilities. Blockchain (BC) emerges as a technology capable of efficiently and transparently managing data and building trust. It can facilitate transaction authorization and verification in supply chains or payments without relying on a third party. This review shows the integration of blockchain technology (BCT) within SCM, addressing traditional SCM limitations such as centralization, lack of transparency, and susceptibility to cyber-attacks. Blockchain's key attributes—immutability, security, decentralization, transparency, tamper-resistance, and disintermediation—offer significant improvements in SCM processes by enhancing traceability, security, and efficiency. This paper shows various blockchain implementations in different industries, highlighting practical advantages and addressing future research opportunities, such as blockchain interoperability, Blockchain as a Service (BaaS), and next-generation decentralized ledger technologies like Hashgraph.