Role of Blockchain Technology in Supplychain Management

Abstract

Today, the primary issues for both physical and online retailers are fake and stolen goods. The likelihood that this product is fake is unknown to consumers. They lack a clear method to check the product's integrity. This not only jeopardizes consumer trust but also imposes significant financial ramifications on both buyers and sellers. Therefore, we suggest a method in which we incorporate blockchain technology to confirm the product's integrity. Central to our proposition is the integration of Non-Fungible Tokens (NFTs) as unique digital identifiers, combined with the dual security layers of holographic labels and RFID tags. This system operates on a private blockchain, ensuring enhanced scalability and transaction efficiency. Furthermore, the mechanism incorporates a collateral system initiated upon order placement, incentivizing honesty and timely delivery among participants. In the event of discrepancies, a robust dispute resolution system, underpinned by a voting mechanism, ensures fairness and trustworthiness. Our experimental implementation demonstrates the system's effectiveness in reducing costs and enhancing transparency in supply chain management. The results highlight the potential of blockchain technology in revolutionizing supply chain management, offering a compelling alternative to traditional systems with reduced costs and increased security and transparency.