Blockchain Technology Application in Supply Chain Management Acknowledgement

Running head: FedEx’s BLOCKCHAIN APPLICATION IN SCM
Research on FedEx's blockchain technology application in Supply Chain Management (SCM)
Name of the Student:
Name of the University:

1FedEx’s BLOCKCHAIN APPLICATION IN SCM
Acknowledgement
Conducting this research has been one of the most enriching experiences of my life. The
contribution of this research to enhance my knowledge base and analytical skill has been
paramount. It gave me the opportunity to face challenges in the process and overcome them. This
would not have been possible without the valuable guidance of my professors, peers and all the
people who have contributed to this enriching experience. I would like to take this opportunity to
thank my supervisor ----------------------- for the constant guidance and support provided to me
during the process of this research. It would not be justified if I did not thank my academic
guides for their important and valuable assistance and encouragement throughout the research
process. I would also like to thank my friends who had provided me with help and
encouragement for collecting primary data and valuable resources. Finally, I would like to thank
people those use express services of FedEx who have participated in the research survey and
provided with valuable inputs into the subject. The support of all these people has been inspiring
and enlightening throughout the process of research in the subject.
Yours Sincerely,

2FedEx’s BLOCKCHAIN APPLICATION IN SCM
Abstract
Since initial stages of the development, the blockchain technology spreads into various industries
other than financial industry. In FedEx, the supply chain is considered as a ground for
implementation of blockchain technology due to lack of trust which characterize the logistics
industry. The research study is aimed to categorize the current market blockchain applications
into SCM based on its functionality. There is various usage of the blockchain technology which
is analyzed under six different points of view to evaluate expected benefits that the stakeholders
expect to gain from technological implementation. The research study is started from interest of
customer demands for evaluation of impact of blockchain to the SCM. The research is aimed to
evaluate impacts of the blockchain and also aimed to provide of recommendations on how to
adapt the blockchain implementation in FedEx. By analyzing the financial as well as information
flows, the organization identifies the process delays in the supply chain of FedEx. In the
conclusion, the business case of FedEx is evaluated based on impact of the logistics. The
research objective is linked with the research findings to evaluate the impact of blockchain
technology in SCM, identify the supply chain issues and possible solutions using blockchain.

3FedEx’s BLOCKCHAIN APPLICATION IN SCM
Table of Contents
Chapter 1: Introduction....................................................................................................................8
1.1 Background of the study........................................................................................................8
1.2 Research aim and objectives..................................................................................................9
1.3 Research questions...............................................................................................................10
1.4 Problem statement...............................................................................................................10
1.5 Rationale of the study..........................................................................................................11
1.6 Structure of the study...........................................................................................................12
Chapter 2: Literature Review.........................................................................................................15
2.1 Introduction..........................................................................................................................15
2.2 Theoretical framework of research study............................................................................15
2.3 Digital supply chain and supply chain execution systems...................................................17
2.4 Blockchain technology........................................................................................................18
2.4.1 Definition of Blockchain..............................................................................................18
2.4.2 How Blockchain work..................................................................................................19
2.4.3 Facts about blockchain technology...............................................................................19
2.5 Overview of current challenges of SCM.............................................................................20
2.6 Characteristics and applications of blockchain technology.................................................22
2.7 Apply of blockchain technology applications in SCM........................................................25
2.8 FedEx’s block chain technology applications.....................................................................28

4FedEx’s BLOCKCHAIN APPLICATION IN SCM
2.8.1 Current situation of FedEx in supply chain management.............................................28
2.8.2 FedEx and Blockchain in Transport Alliance (BiTA)..................................................31
2.8.3 Proposals for FedEx in blockchain technology application for supply
chain management.................................................................................................................34
2.8.4 Application scenario of blockchain technology...........................................................36
2.9 Chapter Summary................................................................................................................38
Chapter 3: Research Methodology................................................................................................39
3.1 Introduction..........................................................................................................................39
3.2 Method outline.....................................................................................................................40
3.3 Research philosophy............................................................................................................40
3.4 Research approach...............................................................................................................42
3.5 Research design...................................................................................................................43
3.6 Data collection process........................................................................................................44
3.6.1 Primary Data Sources...................................................................................................44
3.6.2 Quantitative Data Analysis Method..............................................................................45
3.7 Sampling method.................................................................................................................45
3.8 Sample size..........................................................................................................................46
3.9 Ethical considerations..........................................................................................................46
3.10 Limitations of the study.....................................................................................................46
3.11 Time horizon......................................................................................................................48

5FedEx’s BLOCKCHAIN APPLICATION IN SCM
3.12 Chapter summary...............................................................................................................49
Chapter 4: Results and Data Analysis...........................................................................................50
4.1 Introduction..........................................................................................................................50
4.2 Quantitative data analysis....................................................................................................50
Chapter 5: Discussion....................................................................................................................74
5.1 Introduction..........................................................................................................................74
5.2 Features of blockchain technology into application to supply chain...................................74
5.2 Supply chain challenges in business functions of FedEx....................................................75
5.3 Blockchain technology helps to solve the supply chain issues............................................76
5.3.1 Blockchain as traceability solution...............................................................................76
5.3.2 Blockchain for improved transparency.........................................................................77
5.3.3 Blockchain as IT innovation strategy...........................................................................79
Chapter 6: Conclusion and Recommendations..............................................................................80
6.1 Conclusion...........................................................................................................................80
6.2 Linking with objectives.......................................................................................................81
6.3 Recommendations................................................................................................................83
6.4 Areas of future research.......................................................................................................84
References......................................................................................................................................86
Appendix........................................................................................................................................97
Online Questionnaire.................................................................................................................97

6FedEx’s BLOCKCHAIN APPLICATION IN SCM
Table of tables
Table 4.1: Gender..........................................................................................................................51
Table 4.2: Age...............................................................................................................................52
Table 4.3: Use of FedEx’s express service....................................................................................53
Table 4.4: Known about blockchain technology...........................................................................54
Table 4.5: Application of blockchain technology in SCM will be possible..................................55
Table 4.6: Blockchain technology disrupts line of business..........................................................57
Table 4.7: Benefits of blockchain technology in SCM..................................................................58
Table 4.8: Use causes viable for applying blockchain..................................................................60
Table 4.9: Biggest challenges to use blockchain technology in SCM...........................................62
Table 4.10: Use of blockchain technology in SCM monitor real time data..................................63
Table 4.11: Ways to prevent the supply chain challenges.............................................................65
Table 4.12: Use of digital ledger, the transactions are done accurately........................................66
Table 4.13: Inventory logistics of FedEx matches with customer’s order and transportation
services..........................................................................................................................................68
Table 4.14: FedEx Company Statistics..........................................................................................69
Table 4.15: US postal services statistics........................................................................................72

7FedEx’s BLOCKCHAIN APPLICATION IN SCM
Table of figures
Figure 2.1: Theoretical framework of research study....................................................................16
Figure 2.3: Supply Chain Management.........................................................................................29
Figure 3.1: Research Philosophies.................................................................................................41
Figure 3.2: Research Approaches..................................................................................................42
Figure 3.3: Research Designs........................................................................................................43
Figure 4.1: Gender.........................................................................................................................51
Figure 4.2: Age..............................................................................................................................52
Figure 4.3: Use of FedEx’s express service...................................................................................53
Figure 4.4: Known about blockchain technology..........................................................................55
Figure 4.5: Application of blockchain technology in SCM will be possible.................................56
Figure 4.6: Blockchain technology disrupts line of business........................................................57
Figure 4.7: Benefits of blockchain technology in SCM................................................................59
Figure 4.8: Use causes viable for applying blockchain.................................................................61
Figure 4.9: Biggest challenges to use blockchain technology in SCM.........................................62
Figure 4.10: Use of blockchain technology in SCM monitor real time data.................................64
Figure 4.11: Ways to prevent the supply chain challenges...........................................................65
Figure 4.12: Use of digital ledger, the transactions are done accurately.......................................67
Figure 4.13: Inventory logistics of FedEx matches with customer’s order and transportation
services..........................................................................................................................................68
Figure 4.14: Revenue percentage of FedEx Corporation..............................................................71