Supply Chain Transformation by Blockchain Technology - Implementation of Blockchain Solutions in Supply Chains

Abstract

There are increasing disadvantages and challenges for traditional supply chains as the supply chains are getting more extended and complex, mainly due to the rapid changes in the market environment. We have various risks such as an increasing amount of corruption, lack of quality control and difficulties of tracing impacts of disruptions along the supply chain. One of the promising new disruptive technologies to solve these issues is blockchain technology. It is possible now to have supply chains with single versions of truth displayed in real-time that can contain information about quality, quantity, location, condition and custody of assets. However, behind all the promising solutions and opportunities that blockchain technology can bring, there are also challenges. Therefore, this study aims to investigate where current academic research mainly lacks mentions and analysation, which is about the motives and challenges for the implementation of blockchain solutions in supply chains, with an extensive focus on interoperability, standards, token-based solutions and traceability and visibility features. The study is conducted in terms of a qualitative and exploratory method, with an abductive approach following a multiple case study design. Four representatives from the academic, advisory and consulting context contribute with clarities and explanation regarding the industrial view, together with three representatives from token-based solutions. The teams behind the token-based solutions represented in this study are Vechain, Ambrosus and Morpheus Network. The research concluded that companies are implementing more blockchain solutions and that blockchain might create the most significant changes in the supply chain industry for a long time. The technology is maturing and seen as necessary. Common motives for implementation are the enhancement of transparency and trust. Actors should have a clear issue before implementation where blockchain solutions can create value or save money. Blockchain will not solve everything, and the lack of knowledge is a big hurdle. Clarity issues in terms of regulations and negative associations to cryptocurrencies is another hurdle. Another challenge is the interoperability issues where incumbent technologies need to bridge to blockchain solutions. The key for success is interoperability, and it needs to be agnostic on a supply chain level. Tokenisation seems to increase and play a significant role in the future