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Blockchain Technology for Secure and Transparent Supply Chain Management

Author(s) Akihiko Yamaguchi
Country United States
Abstract Global supply chains depend on continuous information exchange among manufacturers, suppliers, logistics providers, distributors, retailers, regulators, and customers. Conventional information architectures frequently distribute records across independent databases, paper-based documents, enterprise systems, and proprietary platforms, creating difficulties in verifying product provenance, transaction history, custody transfers, compliance records, and authenticity. Blockchain technology offers a distributed ledger architecture through which authorized supply-chain participants can record and verify transactions using shared, chronologically ordered, and tamper-evident records. This study examines the potential contribution of blockchain technology to secure and transparent supply chain management, with particular attention to traceability, auditability, data integrity, provenance verification, smart-contract automation, and information sharing. Because authenticated organizational transaction data were not supplied, a simulation-based comparative methodology was adopted. Four information architectures were modeled: a traditional fragmented record system, a shared enterprise resource planning/database environment, a permissioned blockchain network, and a blockchain architecture integrated with Internet of Things devices and smart contracts.
The simulated analysis indicates progressive improvement in traceability completeness and auditability as information becomes more consistently synchronized and verifiable across participating entities. Traceability completeness increased from an illustrative index of 58 under fragmented traditional records to 91 under permissioned blockchain and 96 under the blockchain–IoT–smart-contract configuration. The corresponding auditability and record-integrity index increased from 54 to 93 and 97. These values are illustrative and do not represent observed performance from a real supply chain. The study emphasizes that blockchain does not independently guarantee the truthfulness of physical-world data, confidentiality, cybersecurity, interoperability, or supplier participation. Its effectiveness depends on identity management, governance rules, data standards, secure interfaces, reliable sensing, permission structures, and appropriate consensus mechanisms. Blockchain is therefore most valuable as part of an integrated digital supply-chain architecture rather than as a stand-alone solution.
Keywords Blockchain technology; supply chain management; traceability; transparency; smart contracts; provenance; data integrity; distributed ledger; supply chain security
Field Engineering
Published In Volume 1, Issue 3, May-June 2019
Published On 2019-06-19

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