Question.1051 - Given all that has been covered in the class, what is the top supply chain issue for the future? Consider areas of exploration such as cybersecurity, disruptive technology, App-based solutions, or some combination of these areas. Write a minimum of a 10-page comprehensive paper (not including cover page or reference section) that is researched and supported about technology in supply chain management. The focus can either be commercial, military, or government. The paper should address at a minimum the following topics: Introduce and define the focus area(s) and explain if it will focus on commercial, military, or government aspects of supply chain management. Explain the current uses of this technology in the military, in business, or within government. Explain the three best arguments that support the use of this technology(s) within your chosen area. Discuss possible shortcomings, limitations, or other factors that might keep a company from adopting this new solution. Discuss operational, financial, and other ramifications of adopting this technology. Conclusion
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Integration of Blockchain Technology into Supply Chain to Enhance Transparency and Human Rights Management Jeremy Rhoades American Public University System SCMG 501: Technology in Supply Chain Management Professor Emmet Fritch August 26th, 2023 Integration of Blockchain Technology into Supply Chain to Enhance Transparency and Human Rights Management Introduction This final paper dwells on the topic "Integration of Blockchain Technology into Supply Chain to Enhance Transparency and Human Rights Management." The primary notion for several leading companies that employ blockchain in their supply chain management is to decentralize and tamper-proof digital ledger that holds the records of transactions and other important information in a single shared, transparent, secure manner and also enables the management to have a track of the entire flow of products and enable a verified journey. One real-world example could be experienced in terms of the Integration of Blockchain technology in Amazon's operation, wherein they utilize it in AWS (Amazon Web Services) to build the application that encompasses various multiple parties such that they engage in transactions directly through a peer-to-peer network, despite the dependency of central authority to verify transactions that involve supply chain management (Blockchain for Supply Chain: Track and Trace, n.d.). Within the scope of Amazon's supply chain network, every network stakeholder tends to possess the accessibility to a centralized ledge that immutably and cryptographically tends to record all the flow transactions, and there is no single network owner (Blockchain for Supply Chain: Track and Trace, n.d.). This intervention tends to enable Amazon's supply chain to document the flow of production in an optimized and centralized framework (single shared ledger) with accurate time-stamped for all the transactions, making it easier for the operations to take advantage of the product status and location at a given time. Implications for Logistic and Supply Chain Since blockchain works on the basis of a paradigm shift in the logistics of the existing operational structure of any company's supply chain, which itself serves as the underlying issue since the conventional supply chain is built over numerous intermediaries, including records that were maintained manually leading to the potential information gaps. Integrating blockchain in the operations of the supply chain network will allow the companies to benefit from the wider potential, such as increasing the transparency and traceability with the framework of distributed ledger that ensures a secure recording of transactions in chronological manners in accordance with the real-time tracking of goods at every stage, that can also be shared with the target or intended stakeholder, this drastically reduces the possibility of counterfeiting, frauds and theft; while logistics department can ensure an accurate the delivery service without unnecessary delays (Christopher, 2022). Secondly, integrating blockchain into the supply chain provides the benefits of immutable records, wherein every transaction or change on the record in blockchain tends to be permanent such as it cannot be altered without authorization from the network authority; it helps the organizations ensure integrity of information along with quality checks and compliance that is tamper-proof (Ivanov et al., 2019). While the potential logistics can be explored in terms of mitigating the possible threat (risk forecasting) and eliminating disputes over varied shipment conditions or delivery times.? The organizations can also establish collaborations among suppliers, manufacturers, distributors, retailers, and consumers, wherein the accessibility verified data in real-time, by reducing the miscommunications among the stakeholders; several firms like Walmart and P&G tend to work on their existing supply chain with a possible framework using enterprise resource planning systems that provide them the ability to the improve the visibility and trackability of large supply chain that involves complex transactions by optimizing the routes and anticipating the possible disruptions in the logistics (Christopher, 2022). In terms of Human Rights and Ethical Sourcing, blockchain tends to establish moral practice in sourcing materials since it offers an unbroken chain of custody; this also helps the logistics sustain a legalized network that is free from any human rights violations or other illegal practices, such optimized flow of operations could bolster the brand reputation in the long run.?? Several organizations have integrated blockchain to support smart contracts in order to build control over self-executing contracts with predefined conditions by triggering adaptable action in a synchronized and autonomous way, meeting several conditions, while it enables logistics to optimize the customs clearance by mitigating diversity in regulations, payment settlements, and quality inspections in order to reduce the manual intervention and improve the overall efficiency Khan & Yu, 2019). Considering Samsung produces electronics relies on its mineral resources from certain conflict-prone regions, they employed blockchain to track the origin of the minerals in order to ensure mitigation of optimized adaptation of regulations to make the process conflict-free; it also helped the organization regulate the automated payments to miners based on predefined conditions (Christopher, 2022).?? Blockchain and Supply Chain Transparency and its Impact on Logistics Considering the blockchain integration into the supply chain tends to improve transparency, for instance, taking the example of the food industry that relies heavily on the supply on a day-to-day basis and is also exposed to dynamic fluctuations that make it harder for the stakeholders to manually streamline the operations, whereby blockchain aids in helping the stakeholders to track the flow of sources from the origin to the table with detailed information, that enables the firms to ensure quality and sustain the brand equity (Rashid et al., 2022). Such transparency elements could enable the firm to build brand image while at the same time ensuring sustainability in terms of procuring a consistent flow of resources in addition to the ethical and environmental considerations; this level of transparency tends increases the potential for traceability to disrupt the conventional supply chain paradigm wherein the information flow was often opaque and suffered the ability to trace real-time. In accordance with the logistics operations, which involves various levels of intermediators and datasets that demand numerous authentication/verification of products in accordance with the factors that might influence the quality of the product, when blockchain is integrated into all the stages of the logistics, the provides a secure form of the communication that does not rely only on physical form of communication, rather providing a single decentralized ledger with immutable dataset depiction shared in similar or personalized form in order to streamline the movement of the goods by reducing the overall time and cost required for logistical operations (Raja Santhi & Muthuswamy, 2022).? Several companies have employed the use of blockchain for mitigating the shift in human rights that also includes possible violations within the scope of the supply chain, for instance, considering the situation that occurred during the Cobalt initiative that depicts a profound shift in the way blockchain helps in ensuring the scope of ethical sourcing (Kelly, 2019; T?nnissen & Teuteberg, 2020). Although there is a surge in the demand trends for a specific raw material, the use of automated evaluation and calibration using AI to accurately and mitigate the desired human resources efforts in accordance with the rate/quantity of resources needed to meet the demand trends (Kelly, 2019). Considering the Cobalt mining incident, the received backlash from several medias and government authorities since they employed child labor; in such a scenarios if blockchain is utilized, it would aid the organization in terms of traceability of the source from the extraction to production due to the scope of the shared network infrastructure the enables a collaborated model that will help the stakeholders make ethical considerations (Kelly, 2019). Such intervention provides the scope for the organization to engage the operations of the supply chain with corporate social responsibilities and reshare conventional human rights frameworks and align them with sustainable supply chain management.? Since the current paradigm of supply chain tends to work on the basis of a complex network of operations with a lot of potential to go haywire due to the human interventions that challenge the product/service authenticity, since every aspect is interlinked with the other aspect of business operation, it has the potential to result in a more efficient, transparent, and responsible supply chain ecosystem (Raja Santhi & Muthuswamy, 2022). Furthermore, by emphasizing responsible procurement and human rights, blockchain has the potential to transform how companies handle their social and environmental obligations. Considerations and Challenges Although blockchain provides significant benefits, widespread implementation is fraught with difficulties, while some of the key considerations include integrating existing systems with blockchain, assuring data accuracy, and managing scalability difficulties. Furthermore, sectors must work together to develop uniform requirements for blockchain deployment in order to assure compatibility along supply chains that includes new technology, analytical thinking is essential to weigh the benefits and drawbacks and make educated decisions that line with the aims of improving supply chain efficiency and ethics (Christopher, 2022; Subramanian et al., 2020). The use of blockchain technology has the ability to upend the present supply chain logistics framework by providing transparency, traceability, and ethical concerns. It has the potential to simplify processes, minimize inefficiencies, and shift industries' attitudes toward responsible sourcing. While there are obstacles, the revolutionary influence of blockchain on supply chain logistics demonstrates the technology's ongoing growth and its ability to construct a more transparent and responsible global supply chain ecosystem. Real World Examples to Depict Usage Practicality The decentralized and transparent nature of blockchain could give a permanent archive of transactions, increasing accountability and decreasing fraudulent activity. The Walmart-IBM collaboration to monitor mango origins shows how blockchain may give end-to-end supply chain transparency; the implementation of blockchain enables every stakeholder, from growers to consumers, to get access to verifiable information about the mangoes' journey, assuring authenticity and confidence (Xu et al., 2019). The capacity of blockchain to establish a tamper-proof record of transactions is especially helpful in areas wherein authenticity and responsible procurement are critical. The "Tracr" platform, developed by De Beers, guarantees that conflict-free and ethically sourced diamonds reach customers; this not only contributes to the preservation of customer trust, but it also resolves concerns regarding the provenance of precious items (Pu & Lam, 2023). Maersk and IBM's cooperation to establish TradeLens demonstrates how blockchain's efficiency and automation may simplify global trading processes; TradeLens lowers paperwork, improves data quality, and speeds up customs clearance by automating trade procedures and offering a secure, shared platform for documentation (Chen et al., 2022). This automation enhances the speed and dependability of global supply networks by optimizing logistical operations. These examples highlight the potential for blockchain technology to change logistics inside existing supply chains; since it enables players to independently confirm the authenticity and integrity of items by giving transparency, minimizing fraud and assuring ethical conduct. Traceability guarantees that items with complicated supply chains, such as diamonds, can be traced back to their source, alleviating worries about unethical sourcing and blockchain automation streamlines processes by decreasing manual labor, paperwork, and delays. It is crucial to highlight, however, that integrating blockchain in supply chain logistics also presents obstacles. Integrating new technology across multiple stakeholders, assuring data veracity, resolving privacy issues, and managing compatibility with current systems are all key considerations (Kshetri, 2021). The emphasis on openness, accountability, and ethical behaviors in blockchain corresponds to ideals of integrity and stewardship, wherein the stakeholders must weigh the advantages against the obstacles and customize blockchain solutions to the specific demands of their supply chains, with the ultimate objective of improving efficiency, trust, and ethical standards in mind (Subramanian et al., 2020). Challenges To validate and record transactions, blockchain depends on an autonomous system of nodes. Yet, in order to participate efficiently, this decentralized nature necessitates a certain amount of technology infrastructure. A significant barrier is illustrated by the example of small-scale suppliers in poor nations that lack the appropriate technological resources; these suppliers may struggle to integrate into blockchain-based supply chains if they do not have access to dependable internet connectivity, computer equipment, and the technical know-how to interact with blockchain networks (Wamba & Queiroz, 2020). Consider a tiny coffee grower in a rural hamlet who does not have constant internet connectivity or the necessary gadgets to engage in a blockchain system that monitors the coffee's journey from farm to cup; the farmer's incapacity to communicate with the technology may jeopardize the blockchain's transparency ambitions (Kshetri, 2021). Incorporating blockchain into an existing supply chain is not a simple task. To accommodate new technologies, established processes and systems must frequently be rethought and modified; although this may be a difficult and disruptive task and the introduction of blockchain into an established supply chain illustrates how the change may need changing procedures, educating people, and potentially influencing other linked technology (Subramanian et al., 2020). A huge international shop with a well-established supply chain may elect to use blockchain to monitor the origin of apparel components; this, however, necessitates restructuring their existing inventory management systems, cooperating with suppliers on data integration, and assuring compatibility with other systems they employ (Kshetri, 2021). Blockchain relies on the idea of transparency, with all participants having access to the data recorded on the chain. Yet, sensitive information must be safeguarded in some circumstances. Sharing patient data through healthcare supply chains is an illustration of an instance wherein data privacy must be handled carefully; while standards like as HIPAA require strict protection of patient data, and using blockchain in such situations necessitates a delicate balance between openness and data security (Subramanian et al., 2020). A pharmaceutical business intends to utilize blockchain to track drug distribution in its supply chain; exchanging patient-specific data while adhering to privacy regulations becomes difficult (Waller, 2019). It is a difficult issue to ensure that only authorized parties have permission to see sensitive information while yet benefiting from the openness of blockchain. Operational Efficiency: IBM's Food Trust Platform IBM's Food Trust technology, which is powered by blockchain, transforms how food items are traced across the supply chain; since it achieves hitherto impossible levels of transparency and traceability (Vijay & Raju, 2023). The capacity to trace food goods from farm to table guarantees that each stage of the trip is accurately recorded; this not only speeds up recalls, but also cuts the time required to pinpoint the origin of exposure during foodborne outbreaks (Waller, 2019). Traditional supply chain tracking solutions frequently rely on paper-based data, which may be time-consuming and error-prone (Vijay & Raju, 2023). The decentralized and unchangeable ledger of blockchain enables real-time data exchange, resulting in speedier reaction times and increased customer protection. Quality Management: Everledger's Diamond Tracking The use of blockchain by Everledger to monitor the origin of diamonds changes the focus away from just controlling diamond transactions and toward verifying the authenticity and ethical source of each stone (Calv?o & Archer, 2021). ?The possibility of counterfeit diamonds infiltrating the supply chain is considerably decreased by tracking each diamond's travel on a blockchain assuring that diamonds are real and responsibly sourced (Calv?o & Archer, 2021). Counterfeit stones and conflict diamonds have long been a source of worry in the diamond business; the capacity of blockchain to establish a tamper-proof record aids in the development of trust and authenticity, fostering ethical activities (Wamba & Queiroz, 2020). Cost Savings: BHP's Mining Supply Chain The use of blockchain by BHP alters the tracking and administration of mineral shipments, resulting in increased efficiency and cost savings (Treiblmaier, 2019). BHP minimizes paperwork and managerial duties involved with tracking ore shipments by automating the tracking process using blockchain leading to saving time while simultaneously lowering operating expenses (Treiblmaier, 2019). Complex supply networks cover several stages and regions in the mining sector and the capacity of blockchain to provide a single, shared source of truth can help to speed communication, decrease mistakes, and eliminate the need for needless intermediaries (Kshetri, 2021; Treiblmaier, 2019). Blockchain adds transparency, traceability, and immutability to supply chains in all three scenarios. These factors contribute to a paradigm shift away from old, fragmented tracking approaches and toward a unified, digital approach. The capacity of technology to improve data quality, eliminate manual involvement, and deliver real-time insights into the supply chain is upending the logistical status quo. References Calv?o, F., & Archer, M. (2021). Digital extraction: Blockchain traceability in mineral supply chains. Political Geography, 87, 102381. Chen, W., Botchie, D., Braganza, A., & Han, H. (2022). A transaction cost perspective on blockchain governance in global value chains. Strategic Change, 31(1), 75-87. Christopher, M. (2022). Logistics and supply chain management. Pearson Uk. Ivanov, D., Dolgui, A., & Sokolov, B. (Eds.). (2019). Handbook of ripple effects in the supply chain (Vol. 276). New York: Springer. Kelly, A. (2019). Apple and Google named in US lawsuit over Congolese child cobalt mining deaths. The Guardian, 16. Khan, S. A. R., & Yu, Z. (2019). Strategic supply chain management (pp. 1-290). Berlin: Springer. Kshetri, N. (2021). Blockchain and supply chain management. Elsevier. Pu, S., & Lam, J. S. L. (2023). The benefits of blockchain for digital certificates: A multiple case study analysis. Technology in Society, 72, 102176. Raja Santhi, A., & Muthuswamy, P. (2022). Influence of blockchain technology in manufacturing supply chain and logistics. Logistics, 6(1), 15. Rashid, A., Ali, S. B., Rasheed, R., Amirah, N. A., & Ngah, A. H. (2022). A paradigm of blockchain and supply chain performance: a mediated model using structural equation modeling. Kybernetes, (ahead-of-print). Subramanian, N., Chaudhuri, A., & Kay?kc?, Y. (2020). Blockchain and supply chain logistics: Evolutionary case studies. Springer Nature. T?nnissen, S., & Teuteberg, F. (2020). Analysing the impact of blockchain-technology for operations and supply chain management: An explanatory model drawn from multiple case studies. International Journal of Information Management, 52, 101953. Treiblmaier, H. (2019). Combining blockchain technology and the physical internet to achieve triple bottom line sustainability: a comprehensive research agenda for modern logistics and supply chain management. Logistics, 3(1), 10. Vijay, T. A., & Raju, M. S. (2023). Blockchain Applications in Fisheries. In E3S Web of Conferences (Vol. 399, p. 07008). EDP Sciences. Waller, M. A., Van Hoek, R., Davletshin, M., & Fugate, B. (2019). Integrating blockchain into supply chain management: a toolkit for practical implementation. Kogan Page Publishers. Wamba, S. F., & Queiroz, M. M. (2020). Blockchain in the operations and supply chain management: Benefits, challenges and future research opportunities. International Journal of Information Management, 52, 102064. Xu, B., Agbele, T., & Jiang, R. (2019, October). Biometric blockchain: A better solution for the security and trust of food logistics. In IOP Conference Series: Materials Science and Engineering (Vol. 646, No. 1, p. 012009). IOP Publishing. Blockchain for Supply Chain: Track and Trace. (n.d.). Amazon Web Services, Inc. https://aws.amazon.com/blockchain/blockchain-for-supply-chain-track-and-trace/More Articles From Operation Management
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