Definition of the Key Term
Supply chain management addresses managerial concerns on identifying and minimizing constraints, synchronization of plans, and global aspects of local changes while optimizing business processes and providing warning signals early to all stakeholders.
Article Summary
The article by Saberi et al. (2018) presents insight into possible improvements in supply chain management with blockchain technology. According to the authors, implementing blockchain technology in supply chain management could help elevate the efficiency of already existing information management systems (Saberi et al., 2018). The authors draw the case of Maradol-brand papayas that caused a salmonella outbreak to illustrate how tracing back a product, and its place of origin could be impossible in current conditions. The article also relies on the case of blockchain technology used by IBM, which allowed the company to save billions of financial resources. The authors suggested that the simple introduction of digital contracts using blockchain technology will significantly facilitate and speed up the supply chain process by eliminating the number of intermediaries in the chain.
Discussion
Implementation of blockchain technology could potentially provide direct peer-to-peer connections between partners with the use of digital contracts. Thus, it could significantly influence the existing conditions of increased involvement of third-party logistic suppliers in the organization’s activities. The following possible trend of reduced integration of third-party participants in the company’s activities could have several consequences, from changes in service prices among third-party logistic suppliers to increased business optimization. Moreover, implementing blockchain technology will result in the company’s digital development, making it possible for the system to provide instant alerts in supply chain failures and reduce monitoring and management resources.
References
Longoni, A., & Kober, E. (2019). A systematic review of sustainable supply chain management in global supply chains. Journal of Cleaner Production, 207, 1084-198. Web.
The article presents a systematic review of sustainability management in the existing global supply chains. The authors’ contribution to sustainability discussion is performed through analyzing sustainable outcomes of global supply chains.
Nunes, L., J., Causer, T.P., & Ciolkosz, D. (2020). Biomass for energy: A review on supply chain management models. Renewable and Sustainable Energy Reviews, 120, 1-8. Web.
The article presents a review of existing studies and researches on the subject of the supply chain of biomass. The authors emphasize that biomass is essential nowadays, mainly due to increased interest in renewable energy sources.
Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2018). Blockchain technology and its relationships to sustainable supply chain management. International Journal of Production Research, 57(7), 2117-2135. Web.
The article presents an insight into the possible use of blockchain technology in the future of business and supply chain management. The authors suggest that the use of blockchain technology could improve the state of digital contracts.