Page 10 - Case Study Annual 2018

Thought Leadership

Blockchain in the

supply chain

By Dr Craig Voortman, Supply Chain Logistics Research Scientist, CESCL Center of
Excellence for Supply Chain & Logistics Yanbu, Saudi Arabia, voortman@rcyci.edu.sa

Exploring the practical use of blockchain in supply chain management.

GLOBALISATION HAS changed our world. We a global trend towards digitization, specifi cally
source products from a multitude of worldwide digitization of the paperwork in the supply
locations and we often use a number of chain, and piggybacking on this move comes a
modes of transport to do so as supplies cross new integrative technology called ‘blockchain’.
international borders. We now have faster
vessels with greater capacity, robot-operated What are blockchains?
ports and vast computer databases to track our Blockchains are a shared supply chain record
cargo movements. The resulting global cargo creating greater visibility and security within
movements have increased the tons and tons of supply chains. A blockchain is a shared
paperwork that are required. All the paperwork digital ledger that records transactions and
increases the administrative pressure and movements of products and/or created
complexity for key people involved in making services in such a way that it makes them
the supply chain work, and for those who must visible and accessible to multiple approved
make shipped products reach end customer participants in the supply chain, while keeping
destinations. transactions safe and secure. Blockchains can
As we move towards a digitalized global create visibility for customers at any stage in
economy, many things are becoming automated a supply chain, from one end to the other end,
and digital. Payments to suppliers and across as well as for any other approved members of
the supply chain are already happening the chain. Blockchains can also create greater
electronically and digitally at the click of a security and accuracy within the supply chain.
mouse, and much faster than before, but the They can monitor the fl ow of movements of
paperwork driving supply chains still slows the products or services at exact times and places
local and global chain down. Clearing items geographically so easily nowadays, thanks to
through port authorities often takes time and satellite communication and radio frequency
involves mounds of paperwork. However, there is identifi cation device (RFID) tags.

8 The Logistics News Case Study Annual 2018