Having done with the introductory concepts about Blockchain technology and supply chain management, a block chain technology literature review about these two topics should be done in order to make a comparison between the views of several different writers on the topic.
Blockchain Technology Literature Review on Shipping Industry
The first article to be analyzed is published by Scientific Foresight Foresight Unit for European Parliament with the title of ‘How Blockchain Technology Could Change Our Lives’. (Boucher, et al., 2017) states that even Blockchain technology is mostly known for the application of Bitcoin and other virtual currencies, it can affect different industries and issues in several different ways. It is stated by (Boucher, et al., 2017) that even blockchain cannot make better people, there are lots of precautions which will make daily life more secure, more transparent, cheaper and faster. Since the article is published by European Parliament, it is written with more of a governmental perspective.
In addition to this, unlike some other articles written about Blockchain technology in the literature, (Boucher, et al., 2017) makes an analysis by taking both the pros and cons of Blockchain technology into consideration. As a result of making a balanced analysis, (Boucher, et al., 2017) comes up with four possible actions to be taken by the governance institutions of European countries about the use of Blockchain technology in governmental operations. The first option is stated as “to respond to ‘the problems to which blockchain is a solution’ without using blockchain at all. For example, if demand for blockchain is based upon a desire for more transparency in processes, then citizens could be granted more access to government data and processes without using blockchain systems at all” (Boucher, et al., 2017).
The second option offers encouraging both the innovation and development of blokchain technology by the private sector by the aid of granting their products with legitimacy. The third option is just opposite to the second one which suggests to discourage the development of blockchain technology. The last option is explained as “to adopt a permissioned blockchain in existing systems and structures, effectively maintaining the role and power of those responsible as middleman by providing some of the basic functionality of blockchains, but without offering full decentralisation and transparency” (Boucher, et al., 2017). This article carries importance as it gives some insights about the possible issues about the future of blockchain technology over the next decade.
Blockchain Technology Literature Review on Supply Chain and Logistics
Secondly, another article named ‘Adoption of Blockchain Technology in Supply Chain and Logistics’ (Sadouskaya, 2017) should be analyzed as well. As it can be inferred from the heading of the research, (Sadouskaya, 2017) analyze the relationship between supply chain, logistics and blockchain as well as how blockchain can be adapted into these two industries. In addition to all these, it is being told by (Sadouskaya, 2017) how the supply chain and logistics industries can be changed by blockchain technology.
According to (Sadouskaya, 2017), blockchain can make a handful of improvements in the supply chain such as making it possible to track the products from the current location to the destination of the products by using the public availability feature of blockchain technology. Secondly, all parties included in the supply chain can participate in the operations at the same time by the aid of using the decentralized structure of blockchain technology.
Thirdly, blockchain technology assures security by using its immutable and cryptography-based nature (Sadouskaya, 2017). In addition to this, (Sadouskaya, 2017) uses the example of IBM blockchain for trade logistics in order to come up with the ways blockchain technology can change shipping industry. It is stated in the article that, “firstly, using a PC or a mobile device the canyon farm submits the packing list that becomes visible to all participants. This action initiates a smart contract and export approval workflow between three agencies.
As each agency signs, information is updated for all to see. Simultaneously, data about the inspection of the flowers, the sailing of the refrigirated container to pick up by the trucker and the approval from customs is 32 communicated to the port of Mombasa allowing them to prepare for the container” (Sadouskaya, 2017). Additively, it is stated in the article that secure data exchange and a temper-proof respository is provided for the documents and the other processes in the shipping events. Lastly, it is stated by (Sadouskaya, 2017) that blockchain technology hinders any delays or missteps in the whole process of shipping. The most important part of (Sadouskaya, 2017) is the criticism made about blockchain technology where the writer criticizes blockchain technology in terms of several issues.
The first criticism made by (Sadouskaya, 2017) is about adaptation of blockchain technology in supply chains. It is stated in the article that a very high number of companies operating in several different businesses try to adopt blockchain technology in their operations without thinking about if blockchain technology can be adopted in their operations or not. It is stated in the article that “In theory, the blockchain can work, but supply chains are very hard to change and adapt. Mougayar thinks, that companies spend years putting supply chains in place and refining them. It is not very easy to insert a new technology inside established supply chain systems because the integration challenges are not to be underestimated” (Sadouskaya, 2017).
Additively, another issue that makes blockchain technology hard to get adopted by supply chains is about the coordination and cooperation in the supply chain as adopting blockchain technology in the supply chain industry need full coordination and cooperation by all the members involved in the supply chain. As a result, (Sadouskaya, 2017) is definitely of importance for this paper as it gives insights about supply chains and shipping industry and adoption of blockchain technology by these two industries.
How Blockchain Transforms the Supplychain?
Another article that is worth analyzing is written by Ronnie Garrett with the title of ‘How Blockchain is Transforming The Supply chain’. By means of the main research questions, it can be stated that (Sadouskaya, 2017) and (Garrett, 2017) are similar to each other as they both analyze the way blockchain technology is affecting and changing the supply chain industry. In addition to supply chain industry, (Garrett, 2017) also takes the shipment industry into consideration as well. It is stated in the article that ‘one of the biggest issues that companies face right now is tracking and tracing goods before, during and after shipment” (Garrett, 2017) and according to the writer, the adoption of blockchain technology in shipment industry can be a solution to such challenges in the shipping industry.
In addition to this issue, it is stated that “The solution will help reduce fraud and errors, reduce the time products spend in the transit and shipping process, improve inventory management and ultimately reduce waste and cost” (Garrett, 2017). When the article is analyzed in general and when the above statements made by the writer is taken into consideration, it can be stated that (Garrett, 2017) is totally for using and adopting blockchain technology in shipping and supply chain industries. When (Garrett, 2017) and (Sadouskaya, 2017) are compared to each other, it can be stated that (Garrett, 2017) could have been improved with some criticisms and cons of using blockchain technology in shipping and supply chain industries. Still, it is obvious to say that (Garrett, 2017) is an important article in the literature as it is one of the few articles in the literature that considers the relationship between blockchain technology and shiping industry and thus (Garrett, 2017) can help this paper with the information and ideas given by it.