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Supply chain traceability using blockchain

Author

Listed:
  • Pedro Azevedo

    (TB.LX)

  • Jorge Gomes

    (Universidade Lusófona)

  • Mário Romão

    (Instituto Superior de Economia e Gestão, Universidade de Lisboa)

Abstract

In the current global marketplace supply chains can span a huge number of countries, cross many borders and require interoperation of a multitude of organizations. This vastness of supply chains impacts business competitiveness since it adds complexity and can difficult securing traceability, chain of custody and transparency. We propose that assuring chain of custody and traceability via Blockchain (BC) allows organizations to demonstrate product provenance, integrity and compliance. This work proposes that to effect true traceability the more complete approach is to connect both the Supply Chain Actors (SCAs) and products identifications using digital certificates. A Blockchain is used to manage the traceability of products and validation of the identities. Importing, verifying and storing the certificates uses an off-chain data storage solution for products certificates, IDs and data (i.e., WalliD) . To create, validate the certificates and setup the chain of trust a Public Key Infrastructure (PKI) was designed as part of the proposal. Our study follows a Design Science research approach aimed to analyse the requirements and propose a solution to a more complete traceability in supply chains. The results were architectural artifacts, including an Ethereum Smart Contract and a PKI based certificate authentication system. The implementation of these deliverables allow for a supply chain system that can provide decentralized and trustful assurance of the provenance, chain of custody and traceability functionalities for all the Organizations and also for the final consumers. To exemplify the problem and demonstrate the applicability of the solution, its potential and benefits we applied it to a real food supply chain use case that already uses provenance certificates and stored them in the blockchain using the before mentioned SmartContract to assure and demonstrate the chain of custody and traceability of the food produce.

Suggested Citation

  • Pedro Azevedo & Jorge Gomes & Mário Romão, 2023. "Supply chain traceability using blockchain," Operations Management Research, Springer, vol. 16(3), pages 1359-1381, September.
    • Handle: RePEc:spr:opmare:v:16:y:2023:i:3:d:10.1007_s12063-023-00359-y
    DOI: 10.1007/s12063-023-00359-y
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    References listed on IDEAS

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    1. Wang, Yingli & Singgih, Meita & Wang, Jingyao & Rit, Mihaela, 2019. "Making sense of blockchain technology: How will it transform supply chains?," International Journal of Production Economics, Elsevier, vol. 211(C), pages 221-236.
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    5. Ieva Meidute-Kavaliauskiene & Bülent Yıldız & Şemsettin Çiğdem & Renata Činčikaitė, 2021. "An Integrated Impact of Blockchain on Supply Chain Applications," Logistics, MDPI, vol. 5(2), pages 1-18, June.
    6. Antonios Litke & Dimosthenis Anagnostopoulos & Theodora Varvarigou, 2019. "Blockchains for Supply Chain Management: Architectural Elements and Challenges Towards a Global Scale Deployment," Logistics, MDPI, vol. 3(1), pages 1-17, January.
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