Research Proposal: Block Chain Technologies in Supply Chain Management

This report explores the application of block chain technologies in supply chain management, focusing on its potential to reduce complexity, minimize errors, and enhance overall efficiency. The research utilizes both primary and secondary data to investigate the impact of block chain on inventory management, data transparency, and interorganizational relationships. It examines the technical aspects of block chain, including peer networks, blocks, and consensus mechanisms, and discusses the metrics for evaluating block chain architecture performance. The study also addresses the challenges and opportunities associated with adopting block chain technology in the supply chain, highlighting its potential to improve trust, automate processes, and drive innovation. The report concludes with recommendations for organizations looking to implement block chain solutions, emphasizing the importance of internal education, collaboration with suppliers, and strategic investment in this transformative technology. Desklib provides access to this document and a wealth of study resources for students.

RUNNING HEAD: Block Chain Technologies in Supply Chain Management 1
Block Chain Technologies in Supply Chain Management
(Name of the student)
(University Name)
(Date of Submission)

Block Chain Technologies in Supply Chain Management 2
Table of Contents
Abstract......................................................................................................................................3
Introduction................................................................................................................................3
Aims and Objectives of the Research........................................................................................3
Research questions.....................................................................................................................3
Hypothesis..................................................................................................................................3
Literature Review.......................................................................................................................3
Research Methodology and Design...........................................................................................4
The Analysis...............................................................................................................................4
Results and Applications............................................................................................................6
Conclusion and Recommendations............................................................................................7
References..................................................................................................................................8

Block Chain Technologies in Supply Chain Management 3
Abstract
The objective of this research is based on the block chain technologies in the supply chain
management. Therefore, the main focus of this research is how the block chain technologies
influences the role of the management and how it might be applied in solving some of
challenges in the management in an organization. The research also aims at identifying some
of the importance of these technologies in relation to the application in the organization.
Introduction
With the changes in technologies and increasing complexity of the busienss, use of
block chain technology develops synergetic relationship with logistic and supply chain
management. The block chain technologies in supply chain management play a critical role.
It not only eliminates the errors and issues in data management but also reduce the
complexity of the inventory management. The block chain technologies in supply chain
management identify issues faster and thus minimizes the supply cost in effective manner.
Aims and Objectives of the Research
This research aims at undertaking how the block chain technology in supply chain
management has gained momentum throughout the time. It is observed that block chain
technologies in supply chain management reduces the complexity and errors in multinational
company and implement effective working in determined approach.
Research questions
There are following research questions which would be undertaken for the research.
 Why block chain technologies in supply chain management is important?
 How block chain technologies could reduce the complexity and error in
inventory management as part of supply chain management?
 How block chain technologies enhance the supply chain management?
Hypothesis
The use of block chain technologies in supply chain management increases the
advances in inventory management. It establishes automation in the inventory management
and reduces the errors and manual work.
Literature Review
As per the perception of Jacobs, Chase and Lummus, (2014) it is reflected that block
chain technologies in supply chain management is advance working management which
helps organization to establish effective supply chain activities. It reduces the complexity and
errors in multinational company and implements effective value chain activities.

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As stated by Omran, et al (2017) it is depicted that technology adoption of block chain
in supply chain management increases the installation of the software’s and up gradation of
the operating system in organization. It increases the risk vulnerability to manage the
business and simultaneously result to advancement in value chain activities.
As per the views of Korpela Hallikas and Dahlberg, (2017) it is revealed that block
chain technologies in supply chain management establish the closed networks of supply chain
which helps employees and management to establish effective communications and effective
working in value chain activities.
Research Methodology and Design
All the data in the research was collected by use of both primary and secondary
research methods. However, the main focus would be to use secondary data such as annual
reports, books and analysing the data of big companies. In addition to this, questionnaire and
survey method were also applied in the collection of the imperative data regarding the use of
block chain technologies in supply chain management (Litosseliti, 2017). Therefore, the data
that was collected and used in this research is genuine and free from plagiarism. In addition
to this, data privacy and confidentiality of the collected data is that of the highest concern.
The Analysis
This part of the analysis aims at depicting the aspects of the block chain technology in the
supply chain management. Block chain technology is a type of distributed ledger, shared,
encrypted database that serves as an irreversible and incorruptible respiratory of the
information (Wright, 2015).
A simple way of understanding the block chain technology model is through comparing it
to the new application layer for the internet protocols due since the block chain can enable
both the immediate and long term economic transactions and more complicated financial
contracts. Moreover, a registry and inventory system for recording, tracking, monitoring, and
transacting of all assets could be managed with block chain technologies. Consequently,
Blockchain can be used for any form of asset, including every area of finance, economics,
and money (Swan, 2015).
i. Technical Aspects of the block chain technologies in supply chain management
There are different varieties of the block chain technologies that were developed to solve
the various problems within the managerial sector of an organization. Thus, for different
needs there are more or less different available technologies. (Kakavand et al., 2016).
Generally, Blockchain is a digital platform that keeps the whole history of all
transactions between users across the network in a tamper- and revision-roof manner. Also,
Blockchain is a database for providing transactions in digital currency such as Bitcoin and
Ethereum networks. All transactions that were created between users or counter-parties are
checked by cryptographic algorithms and then grouped into blocks that are added to
Blockchain. No one can change the information in blocks because they are chained to each
other. The fundamental concepts of the block chain technology are
the following according to Kakavand et al. (2016, 7).

Block Chain Technologies in Supply Chain Management 5
a. The Peer. This is a computer with the special software that maintains a block chain
network so that they can receive and transactions.
b. The Network. This is a result of all the peers that run the block chain software to
communicate with each other.
c. Block. A group of transactions collected by the nodes into bundle. The blocks must be
formed according to pre-determined set of rules. The maximum size in byte must not
be exceeded.
d. Blockchain. It Is a chain of blocks that is organized by the following system: Each
new block is attached to the most recent valid block.
e. Consensus. It is an agreement of all nodes in the Blockchain. To enable distributed
system operation, multiple processes cooperate with each other. Faults in such
systems can occur anywhere, that is why they use consensus protocols.
ii. Metrics
Block chain technologies is a developing and many of the different database technologies
and the distributed protocols appear. The block chain technologies are applicable for many
different industries and as such require a number of specifications (Kiviat, 2015). The main
objective of the development of such technologies is improving

Block Chain Technologies in Supply Chain Management 6
blockchains, solving the scalability and throughput capacity of them and ensuring their
security, performance and robustness. These areas are being covered by various types of
distributed ledger technologies with varying degrees of decentralization. (Crosby et al.,
2016).
The current and past state of the whole network are stored at a blockchain node.
Below are qualitative and quantitative metrics that can evaluate the performance of a
blockchain architecture. (Kakavand et al., 2016).
Results and Applications
Is there any importance for a new technology such as the block chain technology in
the supply chain management? It would seem so since the current system in the current
global market has not yet deliver proper solution to many of those problems.
The block chain technology might therefore be perceived to hold somewhat quasi-magical
powers, in regard to the influence or reinforce trust, strengthen the quality of the information
and automate the flow of the documentation in the interorganizational relationships.
To answer part one of the research question, I examined the field of the management.
This led to academic literature by Seppänen, Blomqvist and Sundqvist (Seppänen 2005). But
to align it with the potential influence of block chain technologies, the management part was
concretized to compare the technology, its predictability and dependability, as this was
deemed where block chain technology might affect the management.
As a result of a workshop with employees at the organization, on the topic of the
block chain technology in relation to suppliers, the block chain technology had an ambiguity.
For the interviewed suppliers, the technology was partly relied on control mechanisms and
certifications, as they knew that it was a subject to fraudulent behaviour. As a result of the
workshop, it was found that the technology was a central part of the management, but
employees sometimes had a lack of confidence in it.
For the possibility to gain or strengthen the management, blockchain could assist as the
solution (Kosba 2017). But the internal challenge is the cooperation with existing data
structures at the organization and their suppliers, to allow access to the relevant systems.
The second part of the research questions was how block chain technology could
reduce the complexity and error in inventory management as part of supply chain
management. By addressing this, subsequently illustrate: what would a conceptual block
chain technology design look like? This trusted distributed ledger, block chain technology,
can remove the need for reconciling each and every transaction with a supplier, implement
business rules, by applying smart contracts. That a transaction only takes place if two or more
participants endorse them or if another transaction has been completed first, due to the built-
in method. As with any new improvements it should sprout internally, teaching management
of the possibilities, organizing internal meetings and identify other areas where technology
can be applied in the future (Buterin, 2015).. Take time to do a simple test, gain knowledge
and grow from there.
Block chain technology in the supply chain management has many characteristics that are
important in today’s industries. Moreover, it brings benefits to for all the concerned parties
such the customers and the suppliers. Those benefits and key features can be summarized as
follows in the following list (Robinson, 2016):

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i. Transparency and Compliance. These are considered to be the most important
advantages of the block chain in the management. They are considered to be
helpful in the elimination of the organizational silos within the existing parts of
the supply chain and the leadership to understand how to make the supply chain
more effective and efficient at different levels.
ii. Reduction of the complexity and errors in inventory management part of the
supply chain management. In relation to this block chain feature, all payments or
payables can be uploaded in the digital ledger where it can be easily checked and
verified.
There exists many other importance of block chain technology yet the true scope of this
technology in the supply chain management is unlimited (Boye, 2016).
Conclusion and Recommendations
Block chain technologies in the supply chain management is a technology that inhibits
and possess the key features that enables any concerned party to solve various current
problems such as those of finance management, non-financial management and overall
managerial problems in advance and at great levels. The block chain technology is thus faced
in different ups and downs in the current global market. Because of this therefore, the
management is divided into two main parts: those that are truly interested in the block chain
supply-based application and those that are skeptically concerned with the type of the
innovation.
As a result of this, the adoption of the block chain in the supply chain management is
thus faced with numerous challenges. The most common challenge is the ability of the block
chain to displace people from their work but all people should be able to understand that this
technology is an innovative technology that improves the efficiency in the different parts and
thus enhances the globalization in general. Because of this, many organizations invest money
in the creation of the block chain technologies in the supply chain management in order to
enhance several metrics and good performance in general.
Supposedly, the adoption of the block chain technology in the supply chain
management is slow at present because the associated risks and some organizations appear to
be skeptical about this technology but it is likely that most of them will earn the confidence
and will spread through all the industry.

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References
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Korpela, K., Hallikas, J. and Dahlberg, T., 2017, January. Digital supply chain
transformation toward blockchain integration. In proceedings of the 50th Hawaii
international conference on system sciences.
Litosseliti, L., 2017. Research methods in linguistics. Bloomsbury Publishing.
Beck, R. (2017); Technology-driven Changes in the Economy, The Routledge Companion to
Management Information Systems. Abingdon: Routledge Falmer
Block Geeks; Smart Contracts: The Blockchain Technology That Will Replace Lawyers
Retrieved from: https://blockgeeks.com/guides/smart-contracts/
Boye, Magnus (2016); Blockchain-revolution: Sådan fungerer tidens mest hyped technology
Retrieved from: https://www.version2.dk/artikel/blockchain-revolution-saadan-fungerer
tidens-mest-hypede-teknologi-848420
Buterin, Vitalik (2015); On Public and Private Blockchains
Retrieved from: https://blog.ethereum.org/2015/08/07/on-public-and-private-blockchains/
Economist (2015); The promise of the blockchain the trust machine
Retrieved from: http://www.economist.com/news/leaders/21677198-technology-behind-
bitcoin-could-transfor m-how-economy-works-trust-machine.
Handfield, Robert B. and Bechtel, Christian (2001); The role of trust and relationship
structure in improving supply chain responsiveness Hyperledger; About the Hyperledger
Project Retrieved from: https://www.hyperledger.org/
Kakavand, H., Kost De Serves, N., Chilton, B. (2016), The Blockchain Revolution: An
Analysis Of Regulation And Technology Related To Distributed Ledger Technologies. [pdf].
Available at: http://www.fintechconnectlive.com/wp-content/uploads/2016/11/Luther-
Systems-DLA-Piper-Article-on-Blockchain-Regulation-and-Technology-SK.pdf [Accessed
02 Apr. 2017].
Kiviat, T., (2015). Beyond Bitcoin: Issues in Regulating Blockchain Transactions. Duke L.J.,
[online] Volume 65, 596. Available at: http://dlj.law.duke.edu/article/beyond-bitcoin-kiviat-
vol65-iss3/ [Accessed 02 Apr. 2017].
Kosba, A., Miller, A., Shi, E., Wen, Z., Papamanthou, C., Hawk: The Blockchain Model Of
Cryptography and Privacy-Preserving Smart Contracts. [pdf] Available at:
https://pdfs.semanticscholar.org/ [Accessed 02 Apr. 2017].

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Swan, M. (2015) Blockchain. 1st ed., Sebastopol: O’reily Media.
Wright, Aaron and De Filippi, Primavera, (2017), Decentralized Blockchain Technology ans
the Rise of Lex Cryptographies. [pdf]. Available at: https://ssrn.com/abstract=2580664
[Accessed 02 Apr. 2017].