Blockchain technology in construction industry : Transparency and traceability in supply chain

Abstract: There is an increasing number of construction products that are manufactured globally through complex supply chains. The results of this is that quality requirements are increasing and the construction industry look towards ways to reassure the sustainability of the materials in their supply chains. The aim of this study is to explore how the new blockchain technology may be used to meet today´s and future requirements of the construction industry and analyze the potential consequences of using the technology. Our work examine how the blockchain technology can support supply chain transparency and material traceability. To explore and analyze how the technology may affect the supply chain of a specific material a case study has been carried out. The task has been focused on how a specific material is handled throughout a suppliers supply chain, from where it originates until final use by a contractor. A hypothetical supply chain has been set-up and analyzed in terms of transparency, traceability and the potential consequences of using the blockchain technology. We have specifically focused on how the blockchain system could be set-up, who should own the blockchain system and what are the sustainable aspects of using blockchain.  The conclusion is that blockchain technology can improve the transparency throughout the entire supply chain. However the need for a complementary technology is needed in order to handle all the problems with traceability. One example of this complementary technology is RFID tagging. Furthermore, some of the consequences that has been identified are; it improves the way to handle supply chain documentation, the reputation of the industry improves, the possibility to remove third party organs increases.