How Blockchain Is Improving Trust and Transparency in Global Supply Chains

Abstract

The dynamics of supply chains are growing to be multi-geographical and multi-stakeholder, and that further increases the burden of trust, transparency, and traceability (Saberi et al., 2019). Data silo and fraud are common issues that cannot be addressed using existing centralized systems, as it creates inefficiencies and becomes devoid of accountability (Kouhizadeh et al., 2021). This paper explores the way the blockchain technology may reshape global supply chains providing the users with decentralized and unchangeable ledgers and, thereby, increasing trust among the actors (Casino et al., 2019). In this study, the researcherv combines the existing records and completes a prototype based on Hyperledger Fabric in combination with smart contracts to gauge the enhancement of the traceability and verification mechanisms (Dolgui et al., 2020). We used a model of machine learning to assess the transaction pattern and identify anomalies and took instructions on the models that were already exemplified in supply chain fraud detection (Jin et al.,2020). According to results, the level of traceability metrics has also increased significantly and by 35% less data inconsistent is generated compared to the traditional ERP systems (Queiroz & Wamba, 2019). The study joins the list of works promoting the idea of the prospective blockchain-based supply chain and indicates realistic consequences regarding scalability and interoperability (Francisco & Swanson, 2018). Future solutions should try to add cross-chain communications and AI-based optimization to improve the transparency and efficiency of operations further (Zhang et al., 2021).

Important keywords: Block chain, Supply chain, Transparency, Trust, Smart contract, Traceability,Hyperledger Fabric