BLOCKCHAIN IN SUPPLY CHAIN
INFORMATION SYSTEM
Sandeepan Roy | GMBA GLSCM | GM19GL039
© 2020 Sandeepan Roy SP Jain School of Global Management
AGENDA
• Blockchain Technology
• Smart Contracts
• Maturity of Blockchain
• Supply Chain Application
• Blockchain in ERP
• Blockchain benefits in ERP
• Value Proposition
• Conceptual Value
• Functional Value
• Transactional Value
• Limitations of implementing Blockchain
• Conclusion
• References
© 2020 Sandeepan Roy SP Jain School of Global Management
BLOCKCHAIN TECHNOLOGY
Figure: Blockchain architecture, Source: Blockchain Council
A consensus-based secure decentralised public/private database which
stores information immutably over a peer-to-peer network
© 2020 Sandeepan Roy SP Jain School of Global Management
SMART CONTRACTS
Optional contact between
parties are written as code
into the blockchain
A trigger event like expiration
date takes place and the
contract executes by itself
Regulators may use the blockchain to
understand the market activity and
maintain individual’s privacy
© 2020 Sandeepan Roy SP Jain School of Global Management
MATURITY OF BLOCKCHAIN
“Blockchain is still 3 to 5 years away from feasibility at scale,
primarily because of the difficulty of resolving “competition”
paradox to establish common standards.”
- Blockchain beyond the hype: What is the strategic business value? June 2018 - McKinsey
“Even now, many executives are unclear on what blockchain really is
and how it is changing all facets of business.”
- Blockchain is here. What’s your next move? - PWC
“Yet the trajectory for blockchain in 2019 and going forward appears
to point in a clearly upward direction.”
- Deloitte’s 2019 Global Blockchain Survey - 2019 - Deloitte
As per the latest reports, blockchain is still behind being
completely matured.
© 2020 Sandeepan Roy SP Jain School of Global Management
SUPPLY CHAIN APPLICATION
Walmart IBM blockchain
for tracing mangoes and
pork
VeChain for tracking
products in supply chain
IBM Maersk-Tradelens
platform for cross border
trade
© 2020 Sandeepan Roy SP Jain School of Global Management
BLOCKCHAIN IN ERP
Figure: Blockchain ERP Integration, Source: Infosys
© 2020 Sandeepan Roy SP Jain School of Global Management
BLOCKCHAIN BENEFITS IN ERP
Transparent financial
transaction
Immutable copy of
information
Make product flow
transparent
Resolve disputes
Track faulty products
© 2020 Sandeepan Roy SP Jain School of Global Management
VALUE PROPOSITION
“Blockchain incorporated into supply chains will
provide trust and transparency, as well as
compliance with government regulations and
internal rules and processes, resulting in
reductions in cost and time delays, improved
quality and reduced risk ”
© 2020 Sandeepan Roy SP Jain School of Global Management
CONCEPTUAL VALUE
“Blockchain ensures transparency
across the supply chain through
decentralized database”
© 2020 Sandeepan Roy SP Jain School of Global Management
FUNCTIONAL VALUE
“Blockchain provides immutable data
through cryptographic signature so that
no one can tamper with the data”
© 2020 Sandeepan Roy SP Jain School of Global Management
TRANSACTIONAL VALUE
“Blockchain ensures end to end visibility
by real time tracking of products across
the supply chain”
© 2020 Sandeepan Roy SP Jain School of Global Management
LIMITATIONS OF
IMPLEMENTING BLOCKCHAIN
Creation &
deployment life cycle
of blockchain is long
and full of
uncertainties
Long-term training
needs, obtaining
qualified practitioners
still has a very high
cost
Benefits will be
realized when mass
participation is
achieved
Current blockchain
applications are built
in private networks, so
incompatible with
other applications
© 2020 Sandeepan Roy SP Jain School of Global Management
CONCLUSION
•
•
•
•
The development of blockchain with address hashing in a
distributed network make the information unhackable which is
key to transparency and authenticity.
In a supply chain, blockchain is useful only when anything is at
stake for any individual. So blockchain will be useful in cases like
food safety and medical use.
Blockchain cannot work in a supply chain alone. Blockchain
needs to be collaborated with IoT sensors. This will ensure
continuous information flow from manufacturer to end user. IoT
access layer would allow physical flow in the supply chain to be
linked with information flow
Blockchain would shape a new digital environment that
businesses from any sector and at any point of the supply chain
will have to navigate together with the banks
© 2020 Sandeepan Roy SP Jain School of Global Management
RFEREENCES
Arnab Banerjee. (2018). Retrieved from INTEGRATING BLOCKCHAIN
WITH ERP FOR A TRANSPARENT SUPPLY CHAIN:
https://www.infosys.com/oracle/whitepapers/documents/integrating-blockchain-erp.pdf
Blockchain council. (2018). What is Blockchain? Blockchain council.
Mayank Pratap. (2018, August 27). Retrieved from Everything You
Need to Know About Smart Contracts: A Beginner’s Guide:
https://hackernoon.com/everything-you-need-to-know-aboutsmart-contracts-a-beginners-guide-c13cc138378a
Tradelens. (2019). Retrieved from Tradelens Solution Brief:
https://www.tradelens.com/solution/
© 2020 Sandeepan Roy SP Jain School of Global Management