title: Leveraging Blockchain Technology for Sustainable, Transparent and Efficient Supply Chain Management: An Integrative Exploration from an Engineering Management Perspective
Creators: name: Fattahi Bafghi, Hesam Aldin
Publisher: name: TU Wien
Year: 2024
Subjects: subject: Blockchain
subject: Supply chain
subject: Sustainability
subject: Transparency
subject: Efficiency
subject: Automation

description: This master's thesis aims to explore the potential of blockchain technology in improving supply chain management by leveraging engineering management principles and emerging technologies, specifically blockchain. This research will seek to enhance sustainability, transparency, efficiency within supply chains through a comprehensive literature review, it will identify challenges in supply chain management and examine how blockchain can address them. To achieve that, we need to address the definitions of sustainability, transparency, and efficiency in supply chains. A sustainable supply chain focuses on integrating environmental, social, and economic considerations (Luther, 2020) into its operations to minimize negative impacts and promote long-term sustainability. While specific specifications may vary depending on the industry and company, there are some key elements commonly associated with a sustainable supply chain (Bateman et al., 2019) that are worth considering, as follows: Environmental Stewardship (Reyes-Soriano et al., 2022), Ethical and Responsible Sourcing (Gimenez et al., 2012), Supply Chain Transparency (Kazancoglu et al., 2008), Collaboration and Partnerships (Seuring and Müller 2008), Risk Assessment and Management (Detwal et al., 2023), Life Cycle Assessment (Gao et al., 2017), Circular Economy Practices (Brandenburg et al., 2018), Stakeholder Engagement and Communication (Ahi et al., 2011), Compliance and Certifications (Govindan et al., 2016), and Continuous Improvement (Detwal et al., 2023). By incorporating these specifications, a sustainable supply chain strives to create positive environmental and social impacts while maintaining economic viability. It promotes responsible sourcing, reduces waste and emissions, fosters stakeholder collaboration, and contributes to a more sustainable future. (Montecchi et al., 2021) A transparent supply chain refers to a system where the flow of information, data, and processes within the supply chain is open, visible, and accessible to relevant stakeholders. It aims to provide real-time visibility into various aspects of the supply chain, including the movement of goods, inventory levels, production processes, and transactions. While the specific specifications may vary depending on the industry and company (Qimaone, 2023)., here are some key elements commonly associated with a transparent supply chain: Data Visibility (Detwal et al., 2023), Technology Infrastructure (Gao et al., 2017), Traceability (Brandenburg et al., 2018), Collaboration and Communication (Kazancoglu et al., 2008), Compliance and Standards (Gimenez et al., 2012), Risk Management (Seuring et al., 2008), and Performance Measurement (Ahi t al., 2011). Overall, a transparent supply chain aims to foster trust, accountability, and efficiency by providing stakeholders with visibility and access to relevant information. It enables proactive decision-making, reduces uncertainties, and facilitates collaboration among supply chain partners. (Detwal et al., 2023), (Schäfer, 2023), (Qimaone, 2023). An efficient supply chain is designed to minimize costs, reduce waste, and optimize the flow of goods and information from suppliers to customers (Jenkins, 2022) While specific specifications 1 may vary depending on the industry and company, here are some key elements commonly associated with an efficient supply chain: Demand Planning and Forecasting (Negi et al., 2021), Lean Inventory Management (Gunasekaran et al., 2004), Supplier Relationship Management (Mulakawa., 2023), Streamlined Processes, Transportation and Logistics Optimization, Data Analytics and Technology Integration (Matopoulos et al., 2015), Continuous Improvement (Negi et al., 2021), Customer Focus, Sustainability and Environmental Considerations (Matopoulos et al., 2015), Performance Measurement (Gunasekaran et al., 2004). By incorporating these specifications, an efficient supply chain aims to achieve cost-effectiveness, responsiveness, and customer satisfaction while optimizing the use of resources and minimizing waste (Negi et al., 2021). Considering all the above definitions, the research will investigate the main principles of engineering management, such as technical understanding, systems thinking, process optimization, innovation and technology adoption, data analysis, decision-making, and continuous improvement, and how the research subject would meet those principles. (Study Smarter, 2023) The proposed methodology will involve a qualitative method approach and may have an integrative exploration approach that involves integrating multiple perspectives (West, 2013), such as engineering management and blockchain technology, to gain a holistic understanding of the subject matter (Seuring et al., 2022). To address the research questions, data collection method is to consider using a combination of primary and secondary data sources (Golicic et al., 2012). Data will be collected from academic sources and relevant databases and analyzed to develop a conceptual framework. Primary data collection methods may include interviews, surveys, or focus groups (Montecchi et al., 2021) with supply chain professionals, blockchain experts, and engineering management practitioners, while secondary data sources may include academic papers, industry reports, and case studies (Raghavarapu et al., 2016). This research aims to discuss analyzing blockchain's decentralized nature (Gaur et al., 2020), cryptographic security, and immutability, and may explore integration with IoT, smart contracts, and data analytics. Case studies and simulations (Jia et al., 2023) will validate the proposed concepts. The findings will contribute to understanding the benefits, challenges, and implementation considerations of adopting blockchain in supply chain management. The research will analyze the collected data for qualitative data, through thematic analysis to identify patterns (Montecchi et al., 2021), themes, and insights from interviews or open-ended survey responses, and the author may use statistical analysis to examine relationships and patterns between variables (Gugueoth et al., 2023), such as blockchain adoption, transparency, and supply chain efficiency. Afterward, the research will have a deep look at case studies and empirical evidence. Several case studies and empirical research (Gaur et al., 2020) provide evidence of the benefits and limitations of leveraging blockchain for supply chain management. These studies can demonstrate successful implementations in various industries, such as food, retail, and pharmaceuticals, where blockchain improves traceability and enhances supply chain resilience (Jia et al., 2023). However, the literature also acknowledges the need for further empirical 2 research and scalability testing to validate blockchain's effectiveness across diverse supply chain contexts while also addressing the limitations and problems that may be caused by leveraging blockchain in the supply chain (Montecchi et al., 2021). While blockchain technology holds great potential for supply chain management, several challenges need to be addressed (Wannenwetsch et al., 2023). Studies highlight scalability concerns, interoperability issues, technical complexity, data privacy and confidentiality, adoption and network effect, high energy consumption, and regulatory and legal implications. These issues should be considered limitations and problems that leveraging the blockchain in the supply chain may create, and we should address them. Furthermore, the integration of blockchain requires collaboration and coordination among multiple stakeholders (Deloitte, 2023), which may pose organizational and governance challenges. It's important to note that while these limitations and problems exist, many of them can be addressed through ongoing research, technological advancements, and collaborative efforts among industry stakeholders. The literature emphasizes the need for careful planning, strategic adoption, and tailored implementation approaches (Gaur et al., 2020). Collaboration between engineering management professionals, supply chain experts, and blockchain developers will be emphasized.