Title: The Impact of Blockchain Technology on Supply Chain Management: A Comprehensive Review
Authors: Julius Olatunde Omisola, Emmanuel Augustine Etukudoh , Ekene Cynthia Onukwulu and Grace Omotunde Osho
Volume: 9
Issue: 4
Pages: 188-194
Publication Date: 2025/04/28
Abstract:
Blockchain technology has emerged as a transformative force, revolutionizing various industries, with its potential to enhance transparency, security, and efficiency. In the realm of supply chain management (SCM), blockchain has garnered considerable attention for its ability to address longstanding challenges. This comprehensive review explores the multifaceted impact of blockchain technology on supply chain processes, examining its potential benefits, challenges, and implications for stakeholders. The supply chain, a complex network of interconnected entities, faces challenges such as opacity, inefficiencies, fraud, and counterfeiting. Blockchain, a decentralized and tamper-resistant distributed ledger technology, has the potential to address these issues by providing a transparent and immutable record of transactions across the supply chain. This section elucidates the foundational principles of blockchain in the context of supply chain management, discussing key elements such as decentralized consensus, smart contracts, and cryptographic security. Understanding these concepts is crucial for grasping the transformative potential of blockchain in SCM. Blockchain facilitates real-time traceability of products throughout the supply chain. Smart contracts and unique identifiers enable stakeholders to track and verify the origin, production, and movement of goods. This increased transparency helps in mitigating risks, reducing fraud, and ensuring compliance with regulatory standards. Blockchain's decentralized nature eliminates the need for intermediaries, reducing transaction costs and delays. Smart contracts automate and streamline processes, minimizing errors and enhancing operational efficiency. This section examines how these factors contribute to cost reduction and improved overall supply chain performance. Blockchain's tamper-resistant nature provides a robust defense against counterfeiting and fraud. By recording each transaction in an immutable ledger, stakeholders can verify the authenticity of products at every stage of the supply chain. The review discusses how this capability safeguards brand reputation and consumer trust. Blockchain promotes trust among supply chain participants by providing a shared, transparent platform for data exchange. Smart contracts enable automated, trustless agreements, fostering collaboration and reducing the risk of disputes. The section explores the impact of blockchain on building trust and strengthening relationships within the supply chain ecosystem. While blockchain holds significant promise, its implementation in supply chain management is not without challenges. This section identifies and analyzes obstacles such as scalability issues, interoperability, regulatory concerns, and the need for industry-wide standards. The review concludes by outlining potential future developments and trends in blockchain technology within the supply chain. It explores ongoing research, emerging use cases, and the evolving landscape of blockchain applications in SCM. Blockchain technology has the potential to revolutionize supply chain management by addressing longstanding challenges and enhancing efficiency, transparency, and trust. However, successful implementation requires overcoming various challenges and fostering collaboration among stakeholders. This comprehensive review provides insights into the transformative impact of blockchain on the supply chain and serves as a foundation for future research and practical applications.