A Pre-study on Implementation of Blockchain based traceability system for Forestry compliance in Wood furniture supply chain

Abstract: Currently, consumers are developing a serious interest in knowing all the information relevant to the products they purchase. According to recent research studies and practice reports, eco-friendly products, e.g., wood products, are subject to purchase barriers. Home furnishing companies are being demanded to provide traceability information of wood products in order to overcome consumer mistrust before purchasing their products. In order to ensure the provided traceability information is correct and sourcing of the wood doesn’t involve any illegal activities, companies in the wood furniture supply chain perform activities like verification of forestry compliance. Blockchain is turning out to be one of the prominent technologies that can be helpful in achieving material traceability. However, blockchain has not reached the optimum maturity level like many other technologies. Therefore it is critical for the companies to conduct an extensive feasibility assessment before implementing blockchain. Lack of this assessment may lead to inefficient implementation and companies might fail to see a return on investment. In this thesis, a case study was performed in a home furnishings company over the period of five months to analyze the implementation of blockchain for increasing the traceability of wood based materials to support forestry compliance in the wood furniture supply chain. The main objective is to investigate the drivers causing blockchain implementation, challenges that might arise while implementation and enablers that could facilitate the implementation of blockchain. A qualitative case study was conducted to fulfill the research purpose and objectives. In addition to the empirical findings from the semi-structured interviews, a systematic literature review was carried out to validate the interviewee’s responses. The findings from this study have clearly proven that blockchain will be instrumental in achieving wood traceability and mitigating the challenges associated with the verification of forestry compliance. Nevertheless, there are still some challenges associated that need to be carefully addressed by the companies in order to realize the expected benefits. This study also provides an overview of the enablers that could possibly help in mitigating the challenges and ensuring the successful functioning of blockchain.