See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/362251744

Supply Chain Transformation with Blockchain Deployment: Enhancing

Efficiency and Effectiveness

Article · July 2022

CITATIONS READS

16 2,464

1 author:

Dr. Pankaj M. Madhani

Management Consultant
256 PUBLICATIONS 1,877 CITATIONS

SEE PROFILE

All content following this page was uploaded by Dr. Pankaj M. Madhani on 26 July 2022.

The user has requested enhancement of the downloaded file.

 Supply Chain Transformation with Blockchain
Deployment: Enhancing Efficiency and Effectiveness

Pankaj M Madhani*

Blockchain is considered the most trending technology that may significantly impact businesses across the
globe as it streamlines deficiencies of inter- and intra-organizational business processes by making them
immutable, decentralized, secure, transparent, and operational-efficient. The applications of blockchain have
begun to revolutionize different aspects of supply chain and operations management and help in reducing
costs and risks and improving quality, flexibility, speed, and sustainability. Blockchain adds the most value
to supply chains through its extended visibility and product traceability and makes supply chains more
responsive and resilient against market disruptions. The study explores the deployment of blockchain
technology to supply chain operations and differentiates traditional supply chains versus blockchain-enabled
supply chains. It develops various frameworks to highlight the likely improved performance as blockchain
deployment enhances the efficiency and effectiveness of the supply chain and ultimately leads to competitive
advantages.

Introduction
The Covid-19 pandemic has caused massive disruptions in supply chain networks, creating
new challenges for both the short and long term. Supply chain disruptions are not merely
isolated to the supply chain; they have a negative ripple effect on the entire organization.
Covid-19 has illuminated many existing structural problems in supply chain infrastructure
around the visibility and integrity of data. New regulations, changing consumer
preferences, and restricted working have forced supply chain stakeholders to manage their
supply chains more efficiently and effectively. High number of intermediaries and lack of
information management have been the major issues of supply chains contributing to the
failure to cope with the Covid-19 pandemic disruption (Sharma et al., 2020). In a highly
disrupted environment, supply chains need to have dynamic and resilient strategies to
tackle the impact of Covid-19 outbreaks.
Supply chain organizations must ensure they can adapt quickly as problems arise. Most
organizations struggle with a lack of data integrity, data sharing, and data visibility with
suppliers and buyers as they do not have a trustworthy supply chain. Hence, companies
are pushing toward digitization of supply chains by adopting emerging technologies like
blockchain to improve data quality, integrity, and visibility that will allow firms to adapt

* Associate Dean and Professor, IBS Hyderabad (Under IFHE – A Deemed to be University u/s 3 of the UGC Act,
1956), Hyderabad, Telangana, India. E-mail: [email protected]

Supply
© 2021Chain Transformation
IUP. All with Blockchain Deployment: Enhancing Efficiency and Effectiveness
Rights Reserved. 7
to challenges in real-time. Data quality, data integrity, and visibility led to reduced risk,
improved customer confidence, flexibility, sustainability, increased speed, and many other
benefits to supply chain organizations and businesses as a whole.
Blockchain technology is considered the most trending technology that may
significantly impact businesses across the globe as it provides significant breakthroughs in
recent times due to its process efficiencies, transparency, and security features (PwC,
2017). It promises to streamline deficiencies of inter-and intra-organizational business
processes by making them immutable, decentralized, secure, transparent, and operational-
efficient (Falazi et al., 2019). Blockchain technology has the potential to make supply
chains more responsive and more resilient against market disruptions. The research on the
deployment of blockchain technology in supply chains has gained traction (Hofmann
et al., 2017; Cottrill, 2018; Kshetri, 2018; Rubio et al., 2018; Ivanov et al., 2019; and
Panetto et al., 2019) and supports the new proposition that competition is not between
the supply chains, but rather between the deployment of various Information and
Communications Technologies (ICTs) [e.g., blockchain, Internet-of-Things (IoT), Big
Data, etc.] behind the supply chains. Blockchain when integrated with other technologies,
like the IoT, could be used to create a permanent, shareable, actionable record of every
moment of a product’s trip through its supply chain, creating enhanced efficiencies,
improved visibility, and better product traceability, authenticity, and legitimacy. Better
traceability improves transparency in the supply chain. IoT and blockchain can be
juxtaposed to create systems that can create a value chain ensuring transparency and
traceability in supply chains (Borah et al., 2020).
In this context, the study seeks to explore different frameworks of deployment of
blockchain technology to supply chain operations and in the process attempts to
synthesize and determine value creation processes, if any, in supply chain operations. In
the course of the analysis, the following research questions are being addressed:
1. What are the impacts of blockchain deployment in supply chains?
2. How does blockchain deployment in supply chains transform traditional supply chains
to build and sustain competitive advantages?
3. What are the issues inherent in blockchain deployment in supply chains?

Literature Review
Blockchain has recently gained significant attention and hype as a disruptive technology,
as 82% of Fortune 100 companies have explored it (https://medium.com).
Blockchain has disrupted many industries like banking, operations, real estate,
insurance, healthcare, electronic health records, copyright, music, renewable energy, and
supply chains and is continuing to impact these sectors due to its decentralized, verified,
and immutable nature. Although the initial focus of blockchain was on cryptocurrencies
and financial-oriented applications (Crosby et al., 2016), the transformative features of

8 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
blockchain motivated non-financial sectors to move toward this “game-changer”
(Johnson, 2018). The applications of blockchain have begun to revolutionize different
aspects of supply chain and operations management for the development of real-time
supply chain capabilities (Saberi et al., 2018; and Oliveira and Handfield, 2019).
Blockchain deployment in the supply chain can help reduce cost and risk and improve
quality, flexibility, speed, and sustainability. Blockchain is not a mere buzzword and can
significantly impact business organizations and is a disruptive technology for Supply
Chain Management (SCM) (Korpela et al., 2017; and Queiroz and Wamba, 2019).
Blockchain provides many positive features that can potentially resolve several SCM
issues (Kshetri, 2018).
Prior research examined blockchain technology potential in SCM related to four main
themes (Pournader et al., 2019): trust (Meng et al., 2018), trade (Mengelkamp et al., 2018),
technology [IoT, Radio-Frequency Identification (RFID)] (Ben-Daya et al., 2019), and
traceability/transparency (Kshetri, 2018). Researchers analyzed adoption behavior and the
usefulness of blockchain technology in the supply chain (Kamble et al., 2018; and
Karamchandani et al., 2020). The potential applications of blockchain to SCM are seen
in improved demand forecasting and inventory management at the planning stage and
product traceability, managing risks and disruptions, and building trust at the
coordination stage (Hofmann et al., 2018; and Saberi et al., 2018). Researchers also
investigated the role of blockchain technology in leveraging a variety of supply chain
operations such as demand forecasting and inventory management, order management,
resilience, risk management, and supply chain distribution (Wu et al., 2017; Martinez
et al., 2019; and Min, 2019). Van Hoek (2020) emphasizes that supply chain companies
need to select a specific supply chain objective that they seek to achieve through
blockchain adoption.
Blockchains add the most value to supply chains through their extended visibility and
product traceability. Companies seeking to implement blockchain into their supply chain
operations for traceability of products include Maersk (Popper and Lohr, 2017),
Provenance (Baker and Steiner, 2015), and Walmart (Kshetri, 2018). Blockchain-based
traceability helps in achieving supply chain coordination and can enhance quality
management and decrease production costs due to increased forecast accuracy (Madhwal
and Panfilov, 2017). Using blockchain for traceability with automated transactions can
also improve inventory management and speed up data reconciliation (Rabah, 2017). As
information is distributed peer-to-peer in real-time using a consensus mechanism, reduced
information asymmetry could reduce the rent-seeking behavior of any of the supply chain players.
With this increased flow of information, suppliers would get a better insight into demand data
allowing them to estimate lead times better and thus mitigate the ‘bullwhip’ effect.
The main issue of data visibility is tackled with the help of blockchain as a check is
put at every stage—from warehouses to the consumer (Awwad et al., 2018; and Francisco
and Swanson, 2018). Blockchains store the data about the location of assets at any point

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 9
in time, the ownership or the custodianship of assets, and their transactional status (Ølnes
et al., 2017). Blockchain can increase supply chain visibility and transparency by preserving
irrefutable and trusted data about past transactions (Wang et al., 2019). Blockchain
enhances supply chain transparency by allowing every partner to access information
concerning the activities within the supply chain, such as providing customers with the
ability to evaluate the products before making a decision. Transparency has been identified
as the enabler for blockchain technology adoption in supply chains (Kamble et al., 2018;
and Wamba et al., 2020).
Global trade tends to involve a variety of stakeholders and supply chain actors. There
is an increase in supply chain complexity because of global supply chain networks
(Lambert and Enz, 2017). Geographically dispersed locations and trade partners often lead
to disconnections and complexity among supply chain partners. The process of moving
goods across borders is heavily regulated; the clearance procedure is mainly processed
manually, adding up to 15 to 50% of the total shipping costs. A blockchain would provide
real-time visibility of shipments directly to customs authorities, significantly improving
the information available for risk analysis, safety, and security control (Engelenburg et al.,
2017; and Kshetri, 2017b). In this context, the blockchain’s role is to provide seamless
networks (Bonino and Vergori, 2017; Wang et al., 2017; and Xu et al., 2017), increased
visibility (Li et al., 2017), and symmetric information to all (Nakasumi, 2017).
In a cross-border trade, the costs associated with trade documentation processing and
administration could be up to one-fifth of the actual physical transportation costs
(Mearian, 2018a). A simple shipment by Maersk of refrigerated goods from East Africa to
Europe in 2014 was found to have gone through nearly 30 people and organizations,
including more than 200 different interactions and communications among them (IBM,
2017a). This complexity makes it difficult to make efficient transactions, trace products,
and data, and assess the information (Ivanov et al., 2019) and often results in the lack of
information visibility—which can be unethically or illegally exploited (Abeyratne and
Monfared, 2016; and Nakasumi, 2017). Thus, acquiring and maintaining reliable data is
critical and hence acts as a motivational driver for blockchain deployment in the supply
chain. A blockchain-based solution addresses the problems of information asymmetry in
the global supply chain (Nakasumi, 2017) and alleviates issues of transparency, dispute
resolution, compliance, integrity, and stakeholder management (Chang et al., 2019).
Blockchain deployment in global supply chains will enable the promotion of transparency
in international trade finance in the third world economy (Kshetri, 2017b). The
blockchain could address the third world’s corruption problem in international trade due
to its transparency (Collomb and Sok, 2016).
Major supply chains, such as food, pharmaceutical products, and diamond, have become
the hotspots for blockchain initiatives (Wang et al., 2019) as it provides the solution for
traceability (Bumblauskas et al., 2019; and Behnke and Janssen, 2020). Blockchain
deployment in supply chains helps in resolving some of the supply chain problems such

10 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
as risks mitigation related to the governance of contracts and processes, supply chain
information sharing, and product counterfeiting (Reijers et al., 2016; Garrett, 2017; and
Shanley, 2017). The businesses operating in the food and pharmaceutical industries are
facing big financial losses due to a variety of supply chain issues such as counterfeiting,
stolen products, gray market, fraud, and product recalls. Such factors have prompted a
movement of supply chain stakeholders toward more transparency and traceability.
As blockchain promises immutability, transparency, and security; it is a promising
solution for the trust and traceability issues. Minimizing counterfeit products has also
been a goal of some blockchain applications (Fernández-Carames and Fraga-Lamas, 2018).
Blockchain is also used to trace the origin and production process of food ingredients
(Foerstl et al., 2017; and Tian, 2017). Lu and Xu (2017) demonstrate the utility of
blockchain in tracing the origin of products across complex supply chains in the agri-food
industry. Chipotle Mexican Grill deploys blockchain for food safety (Casey and Wong,
2017). Tian (2017) proposes a conceptual framework for an agri-food supply chain
traceability system based on blockchain technology and RFID integration.
Blockchain when integrated with IoT allows pharmaceutical supply chains to monitor
temperature and humidity over the transport of medical products (Bocek et al., 2017).
Mackey and Nayyar (2017) ascertained that a blockchain will enable the tracking of
pharmaceutical raw materials and finished goods, making it easier to detect fakes by
allowing blockchain participants to verify the authenticity of data. De Beers successfully
tracked diamonds by deploying a blockchain platform called “Tracr” to establish
provenance, authenticity, and traceability throughout the entire value chain (Mearian,
2018c). De Beers Group’s “Tracr” initiative seeks to trace diamonds on the blockchain
using ID inscriptions (Van Bockstael, 2018). The initiative proposes an open platform for
all industry players in the diamond value chain. Opening up the system to all players
would allow De Beers to learn more about diamond movements and sales throughout the
world.
The technology can handle crises in manufacturing supply chains like product recalls
that occur after safety and security vulnerabilities are found (Kshetri, 2017a). Lee and
Pilkington (2017) found that blockchain deployment in the consumer electronics supply
chain enhances transparency and process integration as blockchains can affect supply chains
in various ways: tamper-proof history of product manufacturing, handling, and maintenance,
digital identity for ownership and packaging, tendering across the supply chain through
smart contracts and engagement with consumers. Blockchain deployment in the supply
chain also provides benefits of sustainability in the supply chain and execution of smart
contracts (Dolgui et al., 2019). Min (2019) suggests ways to apply blockchain and smart-
contracting to manage supply chain risk in the context of the order fulfillment process.
Blockchain offers significant advantages of immutability, transparency, security, trust,
and computational logic (Hughes et al., 2019) and hence provides trustless environments
with less need for intermediaries (Iansiti and Lakhani, 2017). Blockchain technology is

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 11
called “the trust machine” (Berkley, 2015), as it addresses trust issues and provides a
mechanism so that trust becomes less necessary during transactions (Cole et al., 2019) and
hence makes it most suitable for deployment in supply chains. Potential blockchain
benefits include trust, cost reduction, automation, processing speed, streamlined process,
and disintermediation (Casino et al., 2019). Disintermediation increases speed as well as
trust among stakeholders of the supply chain. The blockchain enables multiple supply chain
stakeholders to transact with one another without requiring an intermediary. This shared
value encourages participation and incentivizes collaborative behaviors among participating
members. Walmart, JD.com, IBM, and Tsinghua University are working on blockchain
deployment for improving food safety and traceability by providing trusted information on
the origin and state of food (Aitken, 2017). Blockchain technologies also allow competing
organizations to become involved in the same network. For instance, IBM Food Trust has
multiple retailers on board (IBM, 2017b; and IBM Food Trust, 2018). Blockchain deployment
enhances cost reductions derived mainly from eliminated process intermediaries and
avoided legal costs or fraud costs (Mearian, 2018a). These benefits motivated many
companies (e.g., Walmart, Glencore, etc.) to integrate blockchain technology into their
supply chains to improve efficiency and performance.
The deployment of blockchain pertains to three main areas: authenticating traded
goods, disintermediation, and lower transaction costs (Nowiñski and Kozma, 2017). Prior
research on the blockchain has also focused on supply chains side issues such as supply
chain architecture prescriptions (Gao et al., 2018), supply chain user attitudes (Kamble
et al., 2019), supply chain sustainability (Gausdal et al., 2018), supply chain resilience (Min,
2019) and supply chain performance (Hald and Kinra, 2019). Gao et al. (2018) propose a
two-layered blockchain-based supply chain system to handle processing and storing issues
of large volumes of “decentralized” supply chain transactions. Hald and Kinra (2019)
discuss the enabling and constraining effects of blockchain on supply chain performance.
Queiroz et al. (2020) study the impact of blockchain on supply chain integration and
challenges due to blockchain adoption. Gausdal et al. (2018) discuss adoption drivers (e.g.
cost reduction, regulation) and barriers (e.g., implementation cost, internet speed,
innovation diffusion) for blockchain-based supply chain systems. Kamble et al. (2019) find
that supply chain managers lean toward blockchain adoption for perceived ease of use and
usefulness.

Traditional Supply Chains Versus Blockchain-Enabled Supply Chains

The centralized and trust-based database systems of traditional supply chains cause
bottlenecks and slowdowns to settle transactions. Lack of transparency and susceptibility
to fraud, corruption, and/or other wrongdoings lead to disputes among parties in the
supply chain. As dispute resolution or providing insurance for transactions is expensive
and the complexity of the supply chain continues to grow, these risks and uncertainties
get aggravated and may ultimately result in lost productivity, delayed deadlines, financial
losses, and missed business opportunities in the supply chain. These challenges will be

12 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
tackled by deploying blockchain in the supply chain as it addresses issues such as
counterfeit products, visibility and traceability, and lack of efficiency (Panetta, 2018). The
specific features of blockchain technology (viz., distribution, decentralization, encryption,
immutability, and smart contracts) make it most appropriate for its deployment in the
supply chain. Key characteristics of blockchain technology are explained below:

Blockchain Technology: Basic Features

Distribution
Blockchain is a distributed database where all the parties involved have access to the
database and no single party controls the blockchain. The chain of blocks is distributed over
a Peer-to-Peer (P2P) network, in which every node maintains the latest version of it.

Decentralization
Due to the decentralization of the blockchain, each node adopts distributed accounting
storage; that is, each node has a general ledger as it represents copies distributed among
numerous computers.

Encryption
Blockchain uses a hash algorithm to encrypt each information processing of the
blockchain. It has a highly secured system as hash algorithms and digital signatures help
in data integrity and avoid manipulation of the blocks as completed transactions are
cryptographically signed, timestamped, and sequentially added to the ledger.

Immutability
Immutability means that data or the information is unchanged and hence cannot be
imitated by other parties in the blockchain. It ensures the reliability, authenticity, and
security of all transactions. The immutability of data is highly dependent upon the coding
of smart contracts in transactions.

Smart Contracts
A smart contract is a digitalized set of agreements between firms in the supply chain
process represented in a code and being self-executed by computers once certain
conditions are met. The smart contract enables organizations to handle large amounts of
transactions automatically while reducing the time and cost invested in it.

Blockchain-Enabled Supply Chains: Overcoming Limitations of Traditional

Supply Chains
Information Sharing
Traditional supply chains are characterized by limited information sharing. A firm can be
more proactive in identifying and mitigating potential problems if it has knowledge of the
location and status of its products downstream or its raw materials upstream in the supply
chain (Kaynak and Carr, 2012). One of the key challenges for the present supply chain

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 13
information systems is to incorporate and make accessible information on the status of
orders, inventories, and products outside the firm (Stenger, 2011). This information needs
to come from a credible source and in an adequate format (Wu et al., 2006). In the majority
of supply chains, information flows among the participating firms are hindered by
information systems functioning in disparate technological and operational environments
(Yee and Oh, 2013). Achieving interoperability among these systems requires expensive
integration and standardization efforts, which may not be affordable by all the
participating firms (Kembro and Selvaridis, 2015).
Blockchain can play a key role in ensuring the availability, accessibility, and credibility
of the information necessary for supply chain processes (Casey and Wong, 2017). The
information is verified by the blockchain network for its authenticity and is readily
accessible to all the relevant entities that are part of the network. The blockchain serves
as an independent layer linking participating Enterprise Resource Planning (ERP) systems
and thus enabling the communication of information on a real-time basis. Leading ERP
vendors are making efforts to integrate blockchain with their core ERP and other
enterprise products for seamless information flows among deployment of blockchain in
the supply chain (Bjorlin, 2017; and Bloomberg, 2017). Oracle joined the Hyperledger
Consortium and created a highly advanced and differentiated distributed ledger-based
cloud platform for its enterprise customers (Jacobsen, 2017). Similarly, SAP organized the
SAP Blockchain Consortium with its technology partners and customers to tackle
business challenges related to information sharing and digital verification (SAP ICN,
2019). Blockchain deployment facilitates firms to achieve end-to-end visibility of the
supply chain that otherwise is a challenge in the present supply chain systems without
blockchain (Sithole et al., 2016).

Time Delays
Traditional supply chains are characterized by numerous paper documents and time delays.
Various processes of supply chain, especially for international shipments, involve
numerous third-party intermediaries and paper documents owing to a lack of reliable
information and regulatory compliances (Mearian, 2017).
By including the necessary third-party service providers and government entities as
nodes on blockchain networks, the required information for verification and compliance
processes can be easily communicated, thus eliminating paper documents and time delays
(Sahoo, 2017). IBM and Maersk consortium deployed a pilot project for the international
shipping process to study the utility of blockchain-enabled systems in coordinating
process flows at the delivery points. It involved 30 intermediary entities and 200 pieces
of information exchange. All the concerned entities participated as nodes on the
blockchain platform in the pilot project. The project results indicated significant
improvements in terms of reduced process-span and wastage of perishable goods (Sahoo,
2017; and Mearian 2018a). Encouraged by the results of this pilot project, several other

14 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
firms are following the suit by testing the potential of blockchain-enabled systems to
improve international shipping processes (Ngai, 2018; and Silkchain, 2018). The
consortia led by J.P. Morgan developed and launched the largest blockchain-enabled
payment network, Interbank Information Network (IIN), which can reduce the cross-
border payment settlement processes from weeks to hours, thereby reducing costs
associated with resolving payment delays (Mearian, 2018b).
Major Differences
The differences between traditional supply chains and blockchain-enabled supply chains
are given in Table 1.

Table 1: Traditional Supply Chains Versus Blockchain-Enabled Supply Chains

S. No. Traditional Supply Chains Blockchain-Enabled Supply Chains

1. Information silos due to issues with Seamless information sharing and data
interoperability of IoTs and ERP security with blockchain linking the IoTs
systems of the supply chain partners. and ERP systems of the supply chain
partners.
2. Security concerns in sharing sensitive Cryptographic tools ensure the security of
data. information.
3. Less automation in inter-firm and More scope for automation in inter-firm
intra-firm workflows due to information and intra-firm workflows by using IoTs
security concerns. and smart contracts.
4. Time delays due to cumbersome Instantaneous access to trustable
document verification processes information leads to faster processes
(bills of lading, letter of credit, etc.) verification. Regulatory processes can be
at the supply chain delivery points. expedited by improving confidence in
documentations and hence leads to
reduction in wastage, risk, and insurance
premiums.
5. Lack of platforms that connect the Supply chain platforms enable
supply chain partners and hence require supply chain partners to connect and
the involvement of third-party trade for the required products and
intermediaries in trading products and services using smart contracts.
services.
6. Time delays in cross-border financial Faster cross-border remittance processes
settlements due to longer cross-border with banks and other financial firms
remittance processes of banks. participating in blockchain-enabled
payment platforms.
7. Lack of platforms (for enabling Trustable and secured platforms for
collaborative interactions among engaging in collaborative and confidential
supply chain partners) due to low interactions among the supply chain
trust and security concerns. participants.
8. Less scope for engaging and More scope for engaging and empowering
empowering supply chain partners. supply chain partners.

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 15
Research Methodology: Developing Various Frameworks
To achieve a competitive advantage over its rivals, an organization must provide value
to its consumers through either cost advantage (by performing activities more
efficiently than competitors) or greater differentiation advantage (by uniquely and
effectively performing activities in comparison to competitors). Supply chain
strategies that can achieve high levels of effectiveness and efficiency are desirable
(Sodhi and Tang, 2017).

Efficiency versus Effectiveness: Key Differences

Efficiency is doing things right, and effectiveness is doing the right things. Hence,
performance measurement is an analysis of both efficiency and effectiveness in
accomplishing a given task.
Efficiency is a ratio between the normal levels of inputs over the real level of outputs
and hence, it is the ratio of resources utilized against the results derived. Effectiveness
describes the extent to which goals are accomplished by an organization and hence, it
is the ratio between the real or actual outputs and the normal or expected outputs.

SCM Performance Drivers: Higher Efficiency and Effectiveness

SCM performance is not just about running its operations efficiently but also effectively.
Any attempt to improve efficiency in supply chains, without an equal emphasis on
effectiveness, is likely to be counterproductive. SCM performance is examined in terms
of efficiency and effectiveness usually described with objectives, such as cost, speed,
dependability, quality, and flexibility. Supply chain efficiency is an internal standard of
performance and is a measure of how an organization’s supply chain processes harness
resources in the best way possible. It measures how well an organization’s supply chain
leverages its available resources to meet its goals for cost savings. Supply chain
effectiveness is an external standard of how well an organization is meeting the
expectations and demands of the various stakeholders of the supply chain. In supply chain
operations, higher efficiency results in substantial cost reductions, while higher effectiveness
results in service level improvements. Efficiency is a measure of how economically the supply
chain’s resources are used when providing a pre-specified level of customer satisfaction,
while effectiveness is a degree to which a customer’s expectations are met in the supply chain
(Madhani, 2020). Increased supply chain efficiency and effectiveness drive revenue, decrease
costs, enhance profit, and ultimately raise enterprise value.

Blockchain Deployment in Supply Chains: Enhancing Efficiency and

Effectiveness
Blockchain has immense potential to transform every step of the supply chain, from raw
materials procurement to distribution to the consumers (Babich and Hilary, 2019; and
Goyat et al., 2019) through its features of transparency, authenticity, trust, security,

16 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
reduction of cost, disintermediation, efficient operations and reduced waste (Gurtu and
Johny, 2019; and Philipp et al., 2019). Using blockchain technology for traceability in
supply chains can bring about operational efficiency in different ways: error elimination,
process streamlining, visibility into the supply chain, and improved order fulfillment
(Hastig and Sodhi, 2020). Traceability can help realize supply chain efficiency by way of
information sharing. Blockchain deployment in the supply chain enhances the efficiency
as it reduces cost in the areas of procurement, logistics, supply network, and inventory
management and hence increases cost efficiency. The blockchain-based supply chain
system does not require a mediator or third-party intermediary for a transaction, leading
to lower transactional costs. Reduced transaction costs have been identified as the enabler
for blockchain technology adoption in the logistics and supply chain (Ølnes et al., 2017).
Blockchain deployment in supply chains not just increases efficiency and decreases cost
but also garners more trust, streamlines the related business process (Queiroz et al., 2020),
improves relationships among all the stakeholders, reduces stock out level, improves
response time, increases competitiveness, and thus enhances effectiveness (Madhani,
2021b). Table 2 summarizes various benefits of blockchain deployment in the supply chain
segregated in terms of efficiency and effectiveness improvement.

Table 2: Enhancing Supply Chain Performance with Blockchain Deployment

S. No. Performance Drivers Supply Chain Performance Improvement

1. Higher Efficiency

a. Cost Reduction Reduction in material costs, processing

costs, information costs, distribution costs,
overhead costs, risk costs, and other
intangible costs.
b. Process Cycle Time Reduction Reduction in supply chain process cycle
time, product development cycle time,
transaction time, and product/service
delivery time.
c. Process Improvement Increased capacity, inventory utilization,
and resource utilization.
2. Higher Effectiveness
a. Quality Improvement Reduction in process and product errors,
quality differentiation, and reduction in
data errors.
b. Flexibility More flexibility to respond to customer
demands (delivery flexibility and service
systems flexibility) and environmental
challenges.

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 17
Digital Transformation Framework: Enhancing Efficiency and Effectiveness
Traditional supply chains are characterized by limited automation in inter-firm and intra-
firm workflows due to information security concerns. Blockchain deployment is recognized
by firms for its potential to facilitate internal and external process audits by providing
information trails of the transactions (BW Online Bureau, 2018). With blockchain
deployment in supply chains, the scope for automation increases by using IoT and smart
contracts to coordinate inter-firm and intra-firm workflows. Automation through smart
contracts helps in increasing operational efficiency as scripts are executed automatically
with blockchain technology when predetermined terms and conditions are met. By
replacing trade finance (where banks act as financial mediators) with a blockchain
platform, the processing time can be reduced from 7 to 10 days to 1 to 4 hours (Guo and
Liang, 2016).
A blockchain-based platform in a global supply chain could help digitize paper-based
documentation, and establish an immutable, shared record of all transactions among
network participants in real-time. Blockchain technology uses a shared data infrastructure
that updates itself in real-time and can process and settle transactions in minutes using
computer algorithms, with no need for third-party verification. Blockchain facilitates
process automation and enhances process efficiencies (Mearian, 2017; and Kshetri, 2018).
Blockchain deployment in the supply chain enhances supply chain efficiency and
effectiveness due to real-time tracking through traceability, enhanced visibility, reduced
risk with digitalization, cost efficiency, automatic data processing, disintermediation,
decreased response times, and paperwork reduction.
The supply chain digital transformation framework shown in Figure 1 represents four
quadrants. Quadrant-1 (Q1) represents a traditional supply chain with low supply chain
efficiency as well as effectiveness as it has limited process automation. Quadrant-2 (Q2)
represents suboptimal performance due to low supply chain effectiveness. Quadrant-3
(Q3) is characterized by higher supply chain efficiency as well as effectiveness. Quadrant-4
(Q4) represents suboptimal performance due to low supply chain efficiency.
The combination of higher supply chain efficiency as well as effectiveness helps in the
digital transformation of the supply chain. Such digital transformation enhances
productivity and will help supply chain managers in strategic decision making as it
significantly reduces costs and increases effectiveness.

Business Value-Added Framework: Enhancing Enterprise Value

The importance of added value in gaining a competitive advantage and the long-term
success of organizations has long been recognized (Madhani, 2011, 2012, 2015, 2016,
2017a, 2017b, 2019, 2021a). A value chain framework is used as a basis to present a
business value-added framework, and to demonstrate how blockchain-enabled supply
chain creates overall business values (Figure 2). The business value-added framework
emphasizes that blockchain deployment in the supply chain provides various benefits as

18 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
 Figure 1: Digital Transformation Framework: Enhancing Efficiency and Effectiveness

High
Transformed
(Suboptimal)
Supply Chain
Supply Chain Efficiency Q2
(Increased
Automation)
Q3

Traditional DT
Supply Chain (Suboptimal)
(Limited Q4
Automation)
Q1
Low
Low Supply Chain Effectiveness High

Note: DT = Digital Transformation with blockchain deployment.

Figure 2: Business Value-Added Framework: Enhancing Enterprise Value

Blockchain Deployment in Supply Chain

Blockchain Features
Consensus Cryptographic Faster
P2P Network Fraud Prevention
Mechanism Validation Settlement
Smart
Distribution Decentralization Encryption Immutability
Contract

Supply Chain Digital Transformation

Supply Chain Supply Chain Operational

Efficiency/Effectiveness

Customer Satisfaction,

Network Benefits
Revenue/Net Profit

Enterprise Value
Trust, Loyalty

Supplier Transparency and Visibility

Manufacturer
Product Traceability
Wholesaler
Warehouse
Authenticity and Legitimacy
Retailer
Customer Sustainability

Performance Improvement Business Value-Added

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 19
resultant supply chain capabilities drive higher efficiency and effectiveness of supply chain
operations (Nandi et al., 2020). As discussed earlier, higher efficiency and effectiveness of
supply chain operations lead to various benefits: minimize costs, improve quality, enhance
customer value, increase sales and profitability, and eventually, lead to higher enterprise
value. The entire supply chain network profits from blockchain-enabled supply chains.

Research Implications and Major Challenges

Blockchain will require technological expertise, not just to create but to operate as well.
There is a shortage of workforce skilled in blockchain as a 2019 research report highlights
the availability of only 45,000 to 60,000 experts globally (NASSCOM Avasant, 2019). The
cost of implementing or participating in a blockchain system may also be an issue due to
the technical and specialized expertise required for participation (Patel et al., 2017; and
Wang et al., 2017). As per Global Blockchain Survey conducted by Deloitte in 2019, 43%
of employees believed that blockchain is overhyped (Linda et al., 2019). Some experts claim
that blockchain is not mature yet, and functions of blockchain can be performed by already
mastered technologies (Gatteschi et al., 2018). Blockchain-enabled global supply chains
operate in a complex environment that requires various parties to comply with diverse laws,
regulations, and institutions. Implementing a blockchain in such an environment is an
extremely complex task (Casey and Wong, 2017). For a blockchain to work in the supply
chain, all related supply chain actors should be on board (Kshetri, 2018). Various challenges
of blockchain deployment in the supply chain are summarized below:

Awareness and Regulations

Poor understanding of blockchain is the main reason for its lower adoption rate. Supply
chain managers are not fully aware of the impact and benefits of blockchain which can
give them competitive advantages. The evolving status of blockchain and resistance to the
transition of an established system prevent supply chain partners from adopting
blockchain. As there are no regulations set by the industry regarding blockchain
implementation, it poses a serious challenge to supply chains (Hackius and Petersen,
2017). There are challenges in the adoption of blockchain technology in supply chains due
to a lack of standardization (Morkunas et al., 2019). The non-existence of a unique
standard for blockchain technology is a serious issue for adoption (Casey and Wong, 2017).
Government regulations are still not fully in support of blockchain technology given the
novelty of the technology (Kamble et al., 2019) hampering adoption in the supply chain.

Computing Resources
As blockchain technology is immature, it creates technical challenges, including
scalability, usability, and interoperability (Swan, 2015; Yli-Huumo et al., 2016; and Casino
et al., 2019). Blockchain requires significantly more computing resources, and the
scalability of these resources is a significant concern. Typical ERP tools and systems used
in many organizations do not support blockchain and hence it needs to be compatible.
The cost of blockchain technology is very high because the proof-of-work algorithm used

20 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
requires significant computing power to process transactions (ESC, 2017). Blockchains
also require a high level of energy consumption to maintain the network (Hoy, 2017; and
Kshetri, 2017b). The lack of commitment from the top or middle management also creates
problems as their support is essential for blockchain technology.

Irreversibility of Transactions
As blockchain transactions and “blocks” are irreversible, it can become a problem when
there is a need to change data. The smart contract cannot be easily changed and hence
the code behind the contract must be perfect. Smart contract payments are irreversible,
so if a mistake happens, these cannot be reversed (Patel et al., 2017).

High Cost
Blockchain requires hardware and software, with maintenance, to sustain it. The cost
associated with additional investments increases with larger implementation
(Marsal-Llacuna, 2018). New technology will be costly for the organization and the system
partners, not only for the technology but supporting people and process infrastructure
(Mougayar, 2016). Blockchain is not a standalone technology as it depends upon
qualitative data collection technologies. These include IoT, Big Data, and RFID. Adopting
IoT with blockchain will have added benefits like accurate information acquisition,
real-time information delivery, removal of unnecessary intermediation, and building a
trusted environment in the supply chain network. The successful adoption of blockchain
heavily depends upon real-time and accurate data collection from multiple sources and
requires massive data warehouses from several entities in the network, thus making
blockchain deployment expensive.

Prioritization and Selection

Blockchain technology suffers from latency and throughput issues (lower throughput rate
and higher latency) (Swan, 2015). These issues indicate that the implementation of
blockchain in the supply chain could mean lower transaction numbers, and the
transaction times would be higher. Hence, it still requires development (Mendling et al.,
2018). Accordingly, the selection of a supply chain process that can gain a competitive
advantage after the adoption of blockchain is a crucial mission for management. Thus, the
prioritization and selection of a particular supply chain process while adopting blockchain
is another challenge.

Conclusion
Today’s supply chains are dealing with a turbulent business environment that is becoming
increasingly complex, competitive, and uncertain due to changing and unpredictable
customer demand. There is a need to effectively leverage blockchain technology in the
supply chain as such digital technology significantly helps organizations in reducing time,
cost, and administrative work, thereby enabling managers to focus more on strategic tasks
for enhancing overall efficiency and effectiveness. The study recognizes various attributes

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 21
of blockchain technology (i.e., distribution, decentralization, encryption, immutability,
and smart contract) as important enablers to reduce cost, enhance visibility,
transparency, and speed, create value, increase efficiency and effectiveness and improve
the service level for sustainable supply chain performance. Consistent with the research
objectives, this study undertakes a qualitative approach and explores how the
deployment of blockchain in the supply chain transforms various operations by
enhancing operational efficiency and effectiveness. The study develops various
frameworks such as the business value-added framework and digital transformation
framework to highlight the digital transformation of the supply chain on blockchain
deployment. The blockchain-enabled supply chain operations develop various supply
chain capabilities and enhance the efficiency and effectiveness of the supply chain and
ultimately lead to competitive advantages.
The study has identified challenges for blockchain deployment in the supply chain.
The findings of this study are not limited to food or pharmaceutical industries’ supply
chains as it would be generalizable to other supply chains/industries, which often possess
similar characteristics. While this study provides considerable theoretical and practical
contributions, some limitations of the study also provide opportunities for further
investigation. The study proposes various theoretical frameworks for the deployment of
blockchain in the supply chain that could be tested through quantitative research in the
future. The study also emphasizes that the focus of blockchain deployment in the supply
chain is on reducing costs, working smarter, and doing things right the first time. The
study is unique in that it sheds light on both dimensions of supply chain performance,
i.e., efficiency and effectiveness, and provides a structured approach that can help
organizations in the adoption of blockchain across the various SCM processes.

References
1. Abeyratne S A and Monfared R P (2016), “Blockchain Ready Manufacturing Supply
Chain Using Distributed Ledger”, International Journal of Research in Engineering and
Technology, Vol. 5, No. 9, pp. 1-10.
2. Aitken R (2017), “IBM & Walmart Launching Blockchain Food Safety Alliance in
China with Fortune 500’s JD.com”, Forbes, available at https://www.forbes.com/sites/
rogeraitken/2017/12/14/ibm-walmart-launching-blockchain-food-safety-alliance-in-
china-with-fortune-500s-jd-com/#31971a7e7d9c. Accessed on November 5, 2021.
3. Awwad M, Kalluru S R, Airpulli V K et al. (2018), “Blockchain Technology for
Efficient Management of Supply Chain”, in Proceedings of the International Conference
on Industrial Engineering and Operations Management, pp. 440-449, Washington, DC.
4. Babich V and Hilary G (2019), “OM Forum—Distributed Ledgers and Operations:
What Operations Management Researchers Should Know About Blockchain
Technology”, Manufacturing & Service Operations Management, Vol. 22, No. 2, pp. 223-240.

22 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
 5. Baker J and Steiner J (2015), “Provenance Blockchain: The Solution for Transparency
in Product Supply Chains”, www.provenance.org
6. Behnke K and Janssen M F W H A (2020), “Boundary Conditions for Traceability
in Food Supply Chains Using Blockchain Technology”, International Journal of
Information Management, Vol. 52, June, 101969.
7. Ben-Daya M, Hassini E and Bahroun Z (2019), “Internet of Things and Supply Chain
Management: A Literature Review”, International Journal of Production Research,
Vol. 57, Nos. 15&16, pp. 4719-4742.
8. Berkley J (2015), “The Promise of the Blockchain: The Trust Machine”, The
Economist, available at https://www.economist.com/leaders/2015/10/31/the-trust-
machine. Accessed on November 5, 2021.
9. Bjorlin C (2017), “SAP’s Blockchain Strategy to Build on Supply Chain Base”, IoT
World, available at https://www.iotworldtoday.com/2017/12/21/sap-s-blockchain-
strategy-build-supply-chain-base/. Accessed on November 5, 2021.
10. Bloomberg (2017), “Blockchain Pumping New Life into Old-School Companies Like
IBM”, ITPro Today, available at www.itprotoday.com/premisecloud/blockchain-
pumping-newlife-old-school-companies-ibm/. Accessed om November 5, 2021.
11. Bocek T, Rodrigues B B, Strasser T and Stiller B (2017), “Blockchains Everywhere—
A Use-Case of Blockchains in the Pharma Supply-Chain”, IFIP/IEEE International
Symposium on Integrated Network and Service Management, pp. 772-777.
12. Bonino D and Vergori P (2017), “Agent Marketplaces and Deep Learning in
Enterprises: The Composition Project”, IEEE 41st Annual Computer Software and
Applications Conference (COMPSAC), pp. 749-754.
13. Borah M D, Naik V B and Patgiri R et al. (2020), “Supply Chain Management in
Agriculture Using Blockchain and IoT”, in S Kim and G Deka (Eds.), Advanced
Applications of Blockchain Technology, Studies in Big Data, Vol. 60, Springer, Singapore.
14. Bumblauskas D, Mann A, Dugan B and Rittmer J (2019), “A Blockchain Use Case
in Food Distribution: Do You Know Where Your Food Has Been?” International Journal
of Information Management, Vol. 52, June, 102008.
15. BW Online Bureau (2018), Blockchain Yields Strong Potential in Global Supply
Chain Management, BW CIO WORLD, available at http://bwcio.businessworld.in/
article/Blockchain-Yields-Strong-Potential-in-Global-Supply-Chain-Management/29-
01-2018-138503/. Accessed on November 5, 2021.
16. Casey M J and Wong P (2017), “Global Supply Chains Are About to Get Better,
Thanks to Blockchain”, Harvard Business Review, March, available at https://hbr.org/
2017/03/global-supply-chains-are-about-to-get-better-thanks-to-blockchain.
Accessed on November 5, 2021.

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 23
17. Casino F, Dasaklis T K and Patsakis C (2019), “A Systematic Literature Review of
Blockchain-Based Applications: Current Status, Classification and Open Issues”,
Telematics and Informatics, Vol. 36, March, pp. 55-81.
18. Chang S E, Chen Y C and Lu M F (2019), “Supply Chain Reengineering Using
Blockchain Technology: A Case of Smart Contract Based Tracking Process”,
Technological Forecasting and Social Change, Vol. 144, July, pp. 1-11.
19. Cole R, Stevenson M and Aitken J (2019), “Blockchain Technology: Implications for
Operations and Supply Chain Management”, Supply Chain Management: An
International Journal, Vol. 24, No. 4, pp. 469-483.
20. Collomb A and Sok K (2016), “Blockchain/Distributed Ledger Technology (DLT):
What Impact on the Financial Sector?” DigiWorld Economic Journal, Vol. 103, pp. 93-111.
21. Cottrill K (2018), “The Benefits of Blockchain: Fact or Wishful Thinking?” Supply
Chain Management Review, Vol. 22, No. 1, pp. 20-25.
22. Crosby M, Pattanayak P, Verma S and Kalyanaraman V (2016), “Blockchain
Technology: Beyond Bitcoin”, Applied Innovation, Vol. 2, pp. 6-10.
23. Cummings S (2019), “Blockchain to Become a Commonplace for Fortune 100
Companies”, available at https://medium.com/altcoin-magazine/blockchain-to-
become-a-commonplace-for-fortune-100-companies-3a302526d8eb. Accessed on
November 5, 2021.
24. Dolgui A, Ivanov D, Sethi S P and Sokolov B (2019), “Scheduling in Production,
Supply Chain and Industry 4.0 Systems by Optimal Control”, International Journal of
Production Research, Vol. 57, No. 2, pp. 411-432.
25. Engelenburg S, Janssen M and Klievink B (2017), “Design of a Software Architecture
Supporting Business-to-Government Information Sharing to Improve Public Safety
and Security”, Journal of Intelligent Information Systems, Vol. 52, No. 3, pp. 595-618.
26. ESC (2017), “Top Five Enterprise Blockchain Challenges That Must Be Overcome
in 2018”, ESG Intelligence, available at https://esg-intelligence.com/blockchain-
articles/2017/11/13/blockchain-challenges-2018/. Accessed on November 5, 2021.
27. Falazi G, Hahn M, Breitenbücher U and Leymann F (2019), “Modeling and
Execution of Blockchain-Aware Business Processes”, SICS Software-Intensive Cyber-
Physical Systems, Vol. 34, Nos. 2&3, pp. 105-116.
28. Fernández-Caramés T M and Fraga-Lamas P (2018), “A Review on the Use of
Blockchain for the Internet of Things”, IEEE Access, Vol. 6, pp. 32979-33001.
29. Foerstl K, Schleper M C and Henke M (2017), “Purchasing and Supply Management:
from Efficiency to Effectiveness in an Integrated Supply Chain”, Journal of Purchasing
and Supply Management, Vol. 23, No. 4, pp. 223-228.

24 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
30. Francisco K and Swanson D (2018), “The Supply Chain Has No Clothes: Technology
Adoption of Blockchain for Supply Chain Transparency”, Logistics, Vol. 2, No. 1,
pp. 1-13.
31. Gao Z, Xu L, Chen L et al. (2018), “CoC: A Unified Distributed Ledger Based Supply
Chain Management System”, Journal of Computer Science and Technology, Vol. 33,
No. 2, pp. 237-248.
32. Garrett R (2017), “How Blockchain is Transforming the Supply Chain”, Supply &
Demand Chain Executive, available at www.sdcexec.com/home/article/12328904/how-
blockchainis-transforming-the-upply-chain/. Accessed on November 5, 2021.
33. Gatteschi V, Lamberti F, Demartini C et al. (2018), “To Blockchain or Not To
Blockchain: That is the Question”, IT Professional, Vol. 20, No. 2, pp. 62-74.
34. Gausdal A, Czachorowski K and Solesvik M (2018), “Applying Blockchain
Technology: Evidence from Norwegian Companies”, Sustainability, Vol. 10, No. 6,
pp. 1985-2001.
35. Goyat R, Kumar G, Rai M K and Saha R (2019), “Implications of Blockchain
Technology in Supply Chain Management”, Journal of System and Management Sciences,
Vol. 9, No. 3, pp. 92-103.
36. Guo Y and Liang C (2016), “Blockchain Application and Outlook in the Banking
Industry”, Financial Innovation, Vol. 2, No. 1, pp. 1-12.
37. Gurtu A and Johny J (2019), “Potential of Blockchain Technology in Supply Chain
Management: A Literature Review”, International Journal of Physical Distribution &
Logistics Management, Vol. 49, No. 9, pp. 881-900.
38. Hackius N and Petersen M (2017), “Blockchain in Logistics and Supply Chain: Trick
or Treat?” in Proceedings of Hamburg International Conference of Logistics, pp. 3-18,
Hamburg, Germany.
39. Hald K S and Kinra A (2019), “How the Blockchain Enables and Constrains Supply
Chain Performance”, International Journal of Physical Distribution & Logistics
Management, Vol. 49, No. 4, pp. 376-397.
40. Hofmann E, Strewe U M and Bosia N (2017), Supply Chain Finance and Blockchain
Technology: The Case of Reverse Securitisation, Springer, Berlin.
41. Hofmann E, Strewe U M and Bosia N (2018), “Discussion – How Does the Full
Potential of Blockchain Technology in Supply Chain Finance Look Like?”, in
E Hofmann, U M Strewe and N Bosia (Eds.), Supply Chain Finance and Blockchain
Technology, pp. 77-87, Springer, Berlin.
42. Hoy M B (2017), “An Introduction to the Blockchain and Its Implications for Libraries
and Medicine”, Medical Reference Services Quarterly, Vol. 36, No. 3, pp. 273-279.

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 25
43. Hughes L, Dwivedi Y K, Misra S K (2019), “Blockchain Research, Practice and Policy:
Applications, Benefits, Limitations, Emerging Research Themes and Research Agenda”,
International Journal of Information Management, Vol. 49, December, pp. 114-129.
44. Iansiti M and Lakhani K R (2017), “The Truth About Blockchain”, Harvard Business
Review, January-February, available at https://hbr.org/2017/01/the-truth-about-
blockchain. Accessed on November 5, 2021.
45. IBM (2017a), “Maersk and IBM Unveil First Industry-Wide Cross-Border Supply
Chain Solution on Blockchain”, available at https://newsroom.ibm.com/2017-03-05-
Maersk-and-IBM-Unveil-First-Industry-Wide-Cross-Border-Supply-Chain-Solution-
on-Blockchain. Accessed on November 5, 2021.
46. IBM (2017b), “IBM Announces Major Blockchain Collaboration with Dole,
Driscoll’s, Golden State Foods, Kroger, McCormick and Company, McLane Company,
Nestlé, Tyson Foods, Unilever and Walmart to Address Food Safety Worldwide”,
available at https://newsroom.ibm.com/2017-08-22-IBM-Announces-Major-
Blockchain-Collaboration-with-Dole-Driscolls-Golden-State-Foods-Kroger-
McCormick-and-Company-McLane-Company-Nestle-Tyson-Foods-Unilever-and-
Walmart-to-Address-Food-Safety-Worldwide
47. IBM Food Trust (2018), “IBM Food Trust: Trust and Transparency in Our Food”,
available at https://www.ibm.com/blockchain/solutions/food-trust. Accessed on
November 5, 2021.
48. Ivanov D, Dolgui A and Sokolov B (2019), “The Impact of Digital Technology and
Industry 4.0 on the Ripple Effect and Supply Chain Risk Analytics”, International
Journal of Production Research, Vol. 57, No. 2, pp. 829-846.
49. Jacobsen E (2017), “Oracle Cements Interest on Blockchain: Joins Hyperledger,
Oracle Cloud Platform Blog”, available at https://blogs.oracle.com/cloud-platform/
oracle-joins-hyperledgerconsortium. Accessed on November 5, 2021.
50. Johnson S (2018), “Beyond the Bitcoin Bubble”, The New York Times, January 16.
Retrieved from https://www.nytimes.com/2018/01/16/magazine/beyond-the-bitcoin-
bubble.html
51. Kamble S, Gunasekran A and Sharma R (2018), “Modeling the Blockchain-Enabled
Traceability in Agriculture Supply Chain”, International Journal of Information
Management, Vol. 34, No. 6, pp. 56-69.
52. Kamble S, Gunasekaran A and Arha H (2019), “Understanding the Blockchain
Technology Adoption in Supply Chains – Indian Context”, International Journal of
Production Research, Vol. 57, No. 7, pp. 2009-2033.
53. Karamchandani A, Srivastava S K and Srivastava R K (2020), “Perception-Based
Model for Analyzing the Impact of Enterprise Blockchain Adoption on SCM in the
Indian Service Industry”, International Journal of Information Management, Vol. 52, June
102019.

26 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
54. Kaynak H and Carr A S (2012), “The Role of Information Sharing and Coordination
in Managing Supply Chain Relationships”, International Journal of Integrated Supply
Management, Vol. 7, No. 4, pp. 246-271.
55. Kembro J and Selvaridis K (2015), “Exploring Information Sharing in the Extended
Supply Chain: An Interdependence Perspective”, Supply Chain Management: An
International Journal, Vol. 20, No. 4, pp. 455-470.
56. Korpela K, Hallikas J and Dahlberg T (2017), “Digital Supply Chain Transformation
Toward Blockchain Integration”, Proceedings from the 50th Hawaii International Conference
on System Sciences, Waikola, Hawaii, available at https://scholarspace.manoa.hawaii.edu/
handle/10125/41666. Accessed on November 5, 2021.
57. Kshetri N (2017a), “Can Blockchain Strengthen the Internet of Things?” IT
Professional, Vol. 19, No. 4, pp. 68-72.
58. Kshetri N (2017b), “Will Blockchain Emerge as a Tool to Break the Poverty Chain
in the Global South?”, Third World Quarterly, Vol. 38, No. 8, pp. 1710-1732.
59. Kshetri N (2018), “Blockchain’s Roles in Meeting Key SCM Objectives”, International
Journal of Information Management, Vol. 39, No. 2, pp. 80-89.
60. Lambert D M and Enz M G (2017), “Issues in Supply Chain Management: Progress
and Potential”, Industrial Marketing Management, Vol. 62, April, pp. 1-16.
61. Lee J H and Pilkington M (2017), “How the Blockchain Revolution Will Reshape
the Consumer Electronics Industry [Future Directions]”, IEEE Consumer Electronics
Magazine, Vol. 6, No. 3, pp. 19-23.
62. Li Z, Wu H, King B et al. (2017), “On the Integration of Event-Based and
Transaction-Based Architectures for Supply Chains”, IEEE 37th International Conference
on Distributed Computing Systems Workshops, pp. 376-382.
63. Linda P, Massey R and Holdosky J (2019), “Deloitte 2019 Global Blockchain Survey:
Blockchain Gets Down to Business”, Deloitte, London.
64. Lu Q and Xu X (2017), “Adaptable Blockchain-Based Systems: A Case Study for
Product Traceability”, IEEE Software, Vol. 34, No. 6, pp. 21-27.
65. Mackey T K and Nayyar G (2017), “A Review of Existing and Emerging Digital
Technologies to Combat the Global Trade in Fake Medicines”, Expert Opinion on Drug
Safety, Vol. 16, No. 5, pp. 587-602.
66. Madhani P M (2011), “Business Value Added Through RFID Deployment in Retail:
A Synthesis, Conceptual Framework and Research Propositions”, International Journal
of Electronic Customer Relationship Management, Vol. 5, Nos. 3&4, pp. 305-322.
67. Madhani P M (2012), “Sales and Marketing Integration: Applying the Theoretical
Lens of the Resource-Based View”, International Journal of Electronic Customer
Relationship Management, Vol. 6, Nos. 3&4, pp. 292-322.

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 27
68. Madhani P M (2015), “Enhancing Customer Lifetime Value in Fast Fashion Retailing
with RFID Initiatives”, International Journal of Business and Globalisation, Vol. 5,
No. 2, pp. 205-237.
69. Madhani P M (2016), “Application of Six Sigma in Supply Chain Management:
Evaluation and Measurement Approach”, The IUP Journal of Supply Chain
Management, Vol. 13, No. 3, pp. 34-53.
70. Madhani P M (2017a), “Logistics and Marketing Integration: Enhancing Competitive
Advantages”, The IUP Journal of Management Research, Vol. 16, No. 3, pp. 46-64.
71. Madhani P M (2017b), “Customer-Focused Supply Chain Strategy: Developing
Business Value-Added Framework”, The IUP Journal of Supply Chain Management,
Vol. 14, No. 4, pp. 7-22.
72. Madhani P M (2019), “Strategic Supply Chain Management for Enhancing
Competitive Advantages: Developing Business Value Added Framework”, International
Journal of Value Chain Management, Vol. 10, No. 4, pp. 316-338.
73. Madhani P M (2020), “Enhancing Supply Chain Efficiency and Effectiveness with
Lean Six Sigma Approach”, International Journal of Project Management and Productivity
Assessment, Vol. 8, No. 1, pp. 40-65.
74. Madhani P M (2021a), “Retail Supply Chain Management: Building a Customer-
Focused Approach with Competitive Priorities”, The IUP Journal of Supply Chain
Management, Vol. 18, No. 2, pp. 7-27.
75. Madhani P M (2021b), “Enhancing Supply Chain Capabilities with Blockchain
Deployment: An RBV Perspective”, The IUP Journal of Business Strategy, Vol. 18,
No. 4, forthcoming.
76. Madhwal Y and Panfilov P B (2017), “Blockchain and Supply Chain Management:
Aircrafts’ Parts’ Business Case”, Annals of DAAAM & Proceedings, Vol. 28, pp. 1051-1056.
77. Marsal-Llacuna M L (2018), “Future Living Framework: Is Blockchain the Next
Enabling Network?”, Technological Forecasting and Social Change, Vol. 128, pp. 226-234.
78. Martinez V, Zhao M, Blujdea C et al. (2019), “Blockchain-Driven Customer Order
Management”, International Journal of Operations & Production Management, Vol. 39,
Nos. 6&7&8, pp. 993-1022.
79. Mearian L (2017), “Blockchain in the Real World: 3 Enterprise Use Cases”, Computer
World, available at https://www.computerworld.com/article/3243700/blockchain-in-
the-real-world-3-enterprise-use-cases.html. Accessed on November 5, 2021.
80. Mearian L (2018a), “Maersk, IBM Create World’s First Blockchain-Based, Electronic
Shipping Platform”, Computer World, available at https://www.computerworld.com/
article/3247758/maersk-ibm-create-worlds-first-blockchain-based-electronic-
shipping-platform.html. Accessed on November 5, 2021.

28 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
81. Mearian L (2018b), “What Is Blockchain? The Most Disruptive Tech in Decades”,
Computer World, available at http://staging.computerworld.in/feature/what-blockchain-
most-disruptive-tech-decades. Accessed on November 5, 2021.
82. Mearian L (2018c), “De Beers and Other Jewelry Industry Giants Create Blockchains
to Verify Gems”, Computer World, available at https://www.computerworld.com/
article/3269440/de-beers-and-other-jewelry-industry-giants-create-blockchains-to-
verify-gems.html
83. Mendling J, Weber I, Aalst W V D et al. (2018), “Blockchains for Business Process
Management—Challenges and Opportunities”, ACM Transactions on Management
Information Systems (TMIS), Vol. 9, No. 1, pp. 1-16.
84. Meng W, Tischhauser E W, Wang Q et al. (2018), “When Intrusion Detection Meets
Blockchain Technology: A Review”, IEEE Access, Vol. 6, pp. 10179-10188.
85. Mengelkamp E, Gärttner J, Rock K et al. (2018), “Designing Microgrid Energy
Markets: A Case Study: The Brooklyn Microgrid”, Applied Energy, Vol. 210, January,
pp. 870-880.
86. Min H (2019), “Blockchain Technology for Enhancing Supply Chain Resilience”,
Business Horizons, Vol. 62, No. 1, pp. 35-45.
87. Morkunas V J, Paschen J and Boon E (2019), “How Blockchain Technologies Impact
Your Business Model”, Business Horizons, Vol. 62, No. 3, pp. 295-306.
88. Mougayar W (2016), “The Business Blockchain: Promise, Practice, and Application
of the Next Internet Technology”, John Wiley & Sons, Hoboken, NJ.
89. Nakasumi M (2017), “Information Sharing for Supply Chain Management Based on
Block Chain Technology”, IEEE 19th Conference on Business Informatics, pp. 140-149.
90. Nandi M L, Nandi S, Moya H and Kaynak H (2020), “Blockchain Technology-
Enabled Supply Chain Systems and Supply Chain Performance: A Resource-Based
View”, Supply Chain Management: An International Journal, Vol. 25, No. 6, pp. 841-862.
91. NASSCOM Avasant (2019), NASSCOM Avasant India Blockchain Report 2019,
New Delhi.
92. Ngai S (2018), “Singapore’s PIL, PSA International, IBM Complete Blockchain
Trial”, JOC.Com, available at https://www.joc.com/technology/singapore%
E2%80%99s -pil-psa-international-ibm- say-blockchain-trial- success - sign-
mou_20180227.html. Accessed on November 5, 2021.
93. Nowiński W and Kozma M (2017), “How Can Blockchain Technology Disrupt the
Existing Business Models?”, Entrepreneurial Business and Economics Review, Vol. 5,
No. 3, pp. 173-188.

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 29
 94. Oliveira M P V D and Handfield R (2019), “Analytical Foundations for Development
of Real-Time Supply Chain Capabilities”, International Journal of Production Research,
Vol. 57, No. 5, pp. 1571-1589.
95. Ølnes S, Ubacht J and Janssen M (2017), Blockchain in Government: Benefits and
Implications of Distributed Ledger Technology for Information Sharing, Elsevier, Amsterdam.
96. Panetta K (2018), “Why Blockchain Matters to Supply Chain Executives”, available
at https://www.gartner.com/smarterwithgartner/why-blockchain-matters-to-supply-
chain-executives. Accessed on November 5, 2021.
97. Panetto H, Iung B, Ivanov D et al. (2019), “Challenges for the Cyber-Physical
Manufacturing Enterprises of the Future”, Annual Reviews in Control, Vol. 47, pp. 200-213.
98. Patel D, Bothra J and Patel V (2017), “Blockchain Exhumed”, in 2017 ISEA Asia
Security and Privacy (ISEASP), pp. 1-12, IEEE.
99. Philipp R, Prause G and Gerlitz L (2019), “Blockchain and Smart Contracts for
Entrepreneurial Collaboration in Maritime Supply Chains”, Transport and
Telecommunication, Vol. 20, No. 4, pp. 365-378.
100. Popper N and Lohr S (2017), “Blockchain: A Better Way To Track Pork Chops,
Bonds, Bad Peanut Butter?”, The New York Times, march 4, available at https://
www.nytimes.com/2017/03/04/business/dealbook/blockchain-ibm-bitcoin.html
101. Pournader M, Shi Y, Seuring S and Koh S L (2019), “Blockchain Applications in
Supply Chains, Transport and Logistics: A Systematic Review of the Literature”,
International Journal of Production Research, Vol. 58, No. 7, pp. 2063-2081.
102. PwC (2017), “How Blockchain Technology Could Impact HR and the World of
Work”, available at https://www.pwc.ch/en/insights/hr/how-blockchain-can-impact-
hr-and-the-world-of-work.html. Accessed on November 5, 2021.
103. Queiroz M M, Telles R and Bonilla S H (2020), “Blockchain and Supply Chain
Management Integration: A Systematic Review of the Literature”, Supply Chain
Management: An International Journal, Vol. 25, No. 2, pp. 241-254.
104. Queiroz M M and Wamba S S (2019), “Blockchain Adoption Challenges in Supply
Chain: An Empirical Investigation of the Main Drivers in India and the USA”,
International Journal of Information Management, Vol. 46, June, pp. 70-82.
105. Rabah K (2017), “Challenges and Opportunities for Blockchain Powered Healthcare
Systems: A Review”, Mara Research Journal of Medicine & Health Sciences, Vol. 1,
No. 1, pp. 45-52.
106. Reijers W, O’Brolchain F and Haynes P (2016), “Governance in Blockchain
Technologies and Social Contract Theories”, Ledger, Vol. 1, pp. 134-151.

30 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
107. Rubio M A, Tarazona G M and Contreras L (2018), “Big Data and Blockchain Basis
for Operating a New Archetype of Supply Chain”, Lecture Notes in Computer Science,
Vol. 10943, pp. 659-669.
108. Saberi S, Kouhizadeh M and Sarkis J (2018), “Blockchain Technology: A Panacea or
Pariah for Resources Conservation and Recycling?” Resources, Conservation and
Recycling, Vol. 130, March, pp. 80-81.
109. Sahoo S K (2017), “IBM, Maersk First for Cross-Border Supply Chain on Blockchain”,
Voice and Data, available at https://www.voicendata.com/ibm-maersk-first-for-cross-
border-supply-chain-on-blockchain/. Accessed on November 5, 2021.
110. SAP ICN (2019), SAP Innovation Center Network, https://icn.sap.com/
111. Shanley A (2017), “Could Blockchain Improve Pharmaceutical Supply Chain
Security?”, Pharmaceutical Technology, available at https://www.pharmtech.com/view/
could-blockchain-improve-pharmaceutical-supply-chain-security. Accessed on
November 5, 2021.
112. Sharma A, Gupta P and Jha R (2020), “COVID-19: Impact on Health Supply Chain
and Lessons to Be Learnt”, Journal of Health Management, Vol. 22, No. 2, pp. 248-261.
113. Silkchain (2018), “Silkchain Goes Live: ITDC to Reshape Global Trade with
Blockchain-Based Trading System”, available at https://markets.businessinsider.com/
news/stocks/silkchain-goes-live-itdc-to-Reshape-Global-Trade-With-Blockchain-
Based-Trading-System-1020414214. Accessed on November 5, 2021.
114. Sithole B, Silva S G and Kavelj M (2016), “Supply Chain Optimization: Enhancing
End-To-End Visibility”, Procedia Engineering, Vol. 159, pp. 12-18.
115. Sodhi M and Tang C S (2017), “Supply Chains Built for Speed and Customization”,
MIT Sloan Management Review, Vol. 58, No. 4.
116. Stenger A J (2011), “Advances in Information Technology Applications for SCM”,
Transportation Journal, Vol. 50, No. 1, pp. 37-52.
117. Swan M (2015), “Blockchain: Blueprint for a New Economy”, O’Reilly Media Inc.,
Sebastopol, CA.
118. Tian F (2017), “A Supply Chain Traceability System for Food Safety Based on
HACCP, Blockchain & Internet of Things”, International Conference on Service Systems
and Service Management, pp. 1-6.
119. Van Bockstael S (2018), “The Emergence of Conflict-Free, Ethical, and Fair Trade
Mineral Supply Chain Certification Systems: A Brief Introduction”, The Extractive
Industries and Society, Vol. 5, No. 1, pp. 52- 55.
120. Van Hoek R (2020), “Developing a Framework for Considering Blockchain Pilots in
the Supply Chain—Lessons from Early Industry Adopters”, Supply Chain Management:
An International Journal, Vol. 25, No. 1, pp. 115-121.

Supply Chain Transformation with Blockchain Deployment: Enhancing Efficiency and Effectiveness 31
121. Wamba S S, Quieroz M M and Trinchera L (2020), “Dynamics Between Blockchain
Adoption Determinants and Supply Chain Performance: An Empirical Investigation”,
International Journal of Production Economics, Vol. 229, November, 107791.
122. Wang J, Wu P, Wang X and Shou W (2017), “The Outlook of Blockchain Technology
for Construction Engineering Management”, Frontiers of Engineering Management,
Vol. 4, No. 1, pp. 67-75.
123. Wang Y, Han J H and Beynon-Davies P (2019), “Understanding Blockchain Technology
for Future Supply Chains: A Systematic Literature Review and Research Agenda”,
Supply Chain Management: An International Journal, Vol. 24, No. 1, pp. 62-84.
124. Wu F, Yeniyurt S, Kim D and Cavusgil S T (2006), “The Impact of Information
Technology on Supply Chain Capabilities and Firm Performance: A Resource-Based
View”, Industrial Marketing Management, Vol. 35, No. 4, pp. 493-504.
125. Wu H, Li Z, King B et al. (2017), “A Distributed Ledger for Supply Chain Physical
Distribution Visibility”, Information, Vol. 8, No. 4, pp. 1-18.
126. Xu L, Chen L, Gao Z et al. (2017), “CoC: Secure Supply Chain Management System
Based On Public Ledger”, 26th International Conference on Computer Communication and
Networks (ICCCN), July 31-August 3, pp. 1-6.
127. Yee J T and Oh S C (2013), Technology Integration to Business: Focusing on RFID,
Interoperability, and Sustainability for Manufacturing, Logistics, and SCM, Springer-Verlag,
London.
128. Yli-Huumo J, Ko D, Choi S et al. (2016), “Where Is Current Research on Blockchain
Technology? A Systematic Review”, Plos One, Vol. 11, No. 10, E0163477, available
at https://journals.plos.org/plosone/article?Id=10.1371/journal.pone.0163477. Accessed
on November 5, 2021.

Reference # 34J-2021-12-01-01

32 The IUP Journal of Supply Chain Management, Vol. 18, No. 4, 2021
 Copyright of IUP Journal of Supply Chain Management is the property of IUP Publications
and its content may not be copied or emailed to multiple sites or posted to a listserv without
the copyright holder's express written permission. However, users may print, download, or
email articles for individual use.

View publication stats