Research on Application of Blockchains in Supply Chain Risk Management

Abstract

These years have witnessed overcapacity of blockchains caused by low demand implementation and the lack of product usability. The excessive inventory increases the inventory cost, and reduces the value of the whole ecosystem of the supply chain. As the blockchain technology develops and matures, information systems of each link in the supply chain, including the supplier, the manufacturer, the retailer, and the logistics are able to log the information onto the chain to realize real-time tracking and collaboration. Besides, the supply chain built on the blockchain technology is more dynamic and flexible. In the present work, a three-layer supply chain model consists of a blockchain technology layer, a network layer, and an application layer to achieve real-time information sharing and collaboration of enterprises at different links of supply chain, and to increase the accuracy of demand forests and capacity of inventory replenishment, reduce supply chain risk, establishing a trust management mechanism, and unveil the principles underlying the efficiency of applying blockchain technology to control risks involved in supply chain.