Leveraging the Internet of Things and Blockchain Technology in Supply Chain Management

TLDR

Modern supply chains are complex value networks where verifying raw‑material provenance and maintaining product visibility is increasingly difficult, but the integration of IoT for real‑time tracking and blockchain for immutable record‑keeping can enhance transparency and B2B trust, thereby improving overall efficiency. This paper aims to demonstrate how combining blockchain with IoT infrastructure can streamline supply chains and to formulate six research propositions on how blockchain affects key IoT attributes such as scalability, security, immutability, auditing, information flows, traceability, interoperability, and quality. The authors illustrate the deployment of blockchain‑enabled IoT systems in supply chains and derive the six propositions through a conceptual analysis of blockchain’s impact on IoT features.

Abstract

Modern supply chains have evolved into highly complex value networks and turned into a vital source of competitive advantage. However, it has become increasingly challenging to verify the source of raw materials and maintain visibility of products and merchandise while they are moving through the value chain network. The application of the Internet of Things (IoT) can help companies to observe, track, and monitor products, activities, and processes within their respective value chain networks. Other applications of IoT include product monitoring to optimize operations in warehousing‚ manufacturing, and transportation. In combination with IoT, Blockchain technology can enable a broad range of different application scenarios to enhance value chain transparency and to increase B2B trust. When combined, IoT and Blockchain technology have the potential to increase the effectiveness and efficiency of modern supply chains. The contribution of this paper is twofold. First, we illustrate how the deployment of Blockchain technology in combination with IoT infrastructure can streamline and benefit modern supply chains and enhance value chain networks. Second, we derive six research propositions outlining how Blockchain technology can impact key features of the IoT (i.e., scalability, security, immutability and auditing, information flows, traceability and interoperability, quality) and thus lay the foundation for future research projects.