Blockchain for Supply Chain Management: A Review

Abstract

Blockchain technology offers unprecedented potential for transforming supply chain management (SCM) by enhancing transparency, traceability, and trust across distributed networks of suppliers, manufacturers, and retailers. This review synthesizes pre-2019 scholarly and industry insights on blockchain-SCM integration, examining key use cases, enabling mechanisms (e.g., smart contracts), and implementation challenges. Based on a systematic literature review of 27 peer-reviewed papers (2008–2018) Emerald, complemented by studies on token-based traceability models arXiv+1, findings indicate that blockchain enables immutable record-keeping, automatic execution via smart contracts, and decentralized coordination in supply chains. Early implementations—such as Everledger for diamonds or Walmart–IBM food tracking trials Wikipedia—demonstrate tangible benefits in product provenance and fraud reduction. However, barriers remain: standardization gaps, scalability constraints, interoperability issues, high implementation costs, and data privacy risks PMCResearchGate. We propose a practical workflow: identify SCM pain points → model data and asset flows → choose appropriate blockchain type (public or permissioned) → design smart contracts and token models → pilot deployment (e.g., for traceability) → monitor performance and adjust. Advantages include enhanced trust, efficiency, and reduction of intermediaries; disadvantages encompass technical complexity, stakeholder resistance, and regulatory ambiguity. The paper concludes that while blockchain's integration in SCM remains nascent, its disruptive potential is significant, warranting further standardized experimentation. Future research should focus on interoperability frameworks, performance scalability, privacy-preserving blockchains, and integration with IoT-managed traceability systems.