A Framework for Blockchain Technology Applications in Supply Chain Management

Abstract: Title A Framework for Blockchain Technology Applications in Supply Chain Management Background Since the Bitcoin currency prices received huge increments, researchers and industries started to ask what makes this currency so unique, and how can we harness the technology behind it. This research is about exploring Blockchain Technology applications in the Supply Chain Management field. Different cases applied the technology in different contexts related to supply chain, were gone under a thorough study. Namely, IBM and Maersk, IBM Global financing, Modum and Volvo. Purpose To structure a framework that will identify and describe the applications of Blockchain Technology in Supply Chain Management. To help organizations select the easiest applicable, and most appropriate Blockchain applications for their Supply Chain needs. Methodology The methodology of this study was divided into three phases. The first phase was a literature review that provided the theoretical framework. The second phase was interviews for the selected cases, i.e. IBM and Maersk, IBM Global Financing, Volvo and Modum. In this study, cross-case analysis was done using within-group similarities and intergroup differences technique to analyze the data. For instance, similarities between different companies were evaluated with regards to Blockchain Technology applications. Then, differences with other groups of the technology applications were analyzed. Hence, a comparison on multiple dimensions (i.e. Supply Chain drivers, limitations, success factors, impact on Supply Chain objectives and applicability level) was made in order to update the theoretical framework into a revised framework. The third phase was a follow-up survey to confirm the interview results and to provide the final framework. Conclusions A framework for evaluating the applicability of Blockchain Technology applications was developed. It follows the general steps for problem solving. The first step is to identify the Supply Chain drivers to apply Blockchain Technology. Then, Blockchain applications were defined according to it. Therefore, there are five applications i.e. Supply Chain Traceability, Compliance to quality and sustainability standards, Digitalization of manual transactions, Supply Chain Integration and Supply Chain Finance. It turned out that Supply Chain Integration application had the Highest overall impact on Supply Chain objectives. Then, Compliance, Supply Chain Traceability and Supply Chain Finance. Moreover, Supply Chain Finance and Traceability were single use applications which means it can be applied immediately. Digitalization was localized application that can be applied if it seems promising. Compliance and Supply Chain Integration were transformation applications and seems difficult to apply in the meantime. Keywords Supply Chain Management, Blockchain Technology, Traceability, Compliance, Digitalization, Integration, Supply Chain Finance.