Table 4. Supply chain areas where blockchain might penetrate
Supply chain areas where
blockchain might
penetrate
Explanation
Providing extended visibility
and traceability to
stakeholders
The improvement of visibility for end customers will raise service level
standard and its value
This is an added feature that is achieved from implementing blockchain
within a community of stakeholders, and therefore is achievable as the
scale of implementation is gradually increased
Simplification, digitalisation
and optimisation of supply
chain operations (especially
in a global context)
To help process the current heavy workload on information transfer and
processing
To help manage transactions among multiple organisations for cross border
activities
Implementation should be specific on core supply chain operations such as
information transfer between processes
This will take the shortest time to develop, and potentially the most
controllable area to pilot-test
Smart contracts
Potential applications: automatic validation of shipments, automated track-
and-trace, multi-agent validation for information checking
This is more of a medium- to long term- application as they may involve
wider sets of stakeholders and a greater scale, and should be developed by
3PL organisations once they are comfortable with blockchain’ s application
in smaller scales.
Crucial supply chains/
industries
Initial implementation should be prioritised in crucial supply chains such
as for luxury goods (e.g. diamonds) and key commodities (e.g. oil), or fast-
moving supply chains (e.g. perishable items requiring the cold chain).
These supply chains carry greater purpose and sense of urgency in needing
a reliable, automatable network of information transfer.
If successful, implementation in these supply chains will be able to raise
positive examples of how blockchain can benefit the supply chain industry.
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