The Importance of Blockchain Technology in Supply Chain Management
Chapter from the book:
Tuna,
F.
&
Buğan,
M.
F.
(eds.)
2022.
Research on Social Sciences: Economics & Politics.
Synopsis
Supply Chain Management covers all activities ranging from strategic level actions to tactical and operational level actions of companies involved in the effective integration of suppliers, manufacturers and distribution centers. Blockchain technology is a transaction database running on the Bitcoin protocol, which contains information about all transactions performed in the past. It is thought that blockchain technologies, which first appeared in the financial sector, will undertake intermediary activities in many areas over time. The fact that technology does not need a third party is a feature that makes it attractive. In addition, in the transactions made by the members of the supply chain using this technology, it is very important that each transaction is converted into an encrypted block by the member. The common result of the researches is that the blockchain technology provides a rapid transformation, especially in supply chain management. Redesigning supply chains with blockchain technology facilitates the traceability of processes and increases reliability and efficiency. The biggest advantage of this technology is to accelerate the information flow between the parties in the supply chain. Thus, it not only adds visibility and predictability to logistics operations, but also speeds up the physical flow of goods. Therefore, blockchain can help realize cost savings by providing leaner, more automated and error-free processes. In the study, first of all, the definition, structure, features and application areas of blockchain technology are expressed conceptually. Then, there is information about supply chain management and the applications of blockchain technology on the supply chain and studies on the subject. In the last section, the findings are evaluated and the possible risks of the blockchain are mentioned.