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Making sense of blockchain technology: How will it transform supply chains?
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· February 2018
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Proceedings of the 20th International Working Seminar on Production Economics
Making sense of blockchain technology:
How will it transform supply chains?
Yingli Wang
1
*, Meita Singgih
1
, Jingyao Wang
1
, Mihaela Rit
2
*Corresponding author
1
Logistics and Operations Management Section, Cardiff Business School, Cardiff University, UK
*
WangY14@cardiff.ac.uk
2
Panalpina Romania SRL,
Gen. Dragalina Street, No 27, Ap 20, Timis, Romania
Mihaela.Rit@panalpina.com
Abstract
The aim of this research is to explore how the emerging blockchain technology may transform supply chains.
We do so by exploring the answers to two RQs, i.e. why is blockchain technology
important to logistics and
supply chain sector and where are disruptions mostly likely to occur. Via a comprehensive literature review and
14 expert interviews, we found that the perceived benefits such as improved tracking and traceability in an end-
to-end supply chain and efficiency gains through automation and reduction of complexities are the main
motivational factors that help to explain why blockchain matters to supply chain. We further identify areas where
blockchain
may penetrate in supply chains, namely, supply chain tracing and tracking,
supply chain
disintermediation, simplification and digitalisation of supply chain process and smart contract. We also reveal
challenges to its further diffusion. Finally, we acknowledge our research limitation
and highlight a number of
avenues for future research. We contribute to the literature by elucidating the reasons why blockchain
technology is important to supply chain management and by locating areas where it may bring value to supply
chain. Our research thereby offers valuable insights to both practitioners and academics in this field to prepare
them to embrace this emerging technological innovation.
Keywords: blockchain, logistics, supply chain, exploratory study, sensemaking.