BLOCKCHAIN TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT: EFFICIENCY, TRANSPARENCY, AND FUTURE OPPORTUNITIES

Abstract

This paper provides an in-depth analysis of how blockchain technology is transforming supply chain management (SCM) through enhanced transparency, improved data integrity, automated workflows, and strengthened trust among stakeholders. As global supply chains become increasingly complex—spanning multiple countries, transport systems, digital platforms, and regulatory frameworks—traditional management techniques face significant challenges in traceability, fraud prevention, and process efficiency. Blockchain, as a decentralized and immutable ledger technology, introduces a new paradigm that eliminates many weaknesses of centralized systems. This research examines blockchain’s fundamental mechanisms, including consensus algorithms, smart contracts, distributed data structures, and cryptographic validation, and evaluates their applicability to logistics, manufacturing, agriculture, retail, transportation, and pharmaceutical supply chains. The study also explores real-world implementations by IBM, Maersk, Walmart, and global food and vaccine distributors, analyzing results from early adoption. Challenges such as scalability, energy consumption, privacy concerns, interoperability limitations, and regulatory uncertainty are critically assessed. Findings show that blockchain-based systems significantly reduce administrative overhead, improve product traceability, combat counterfeiting, accelerate payments, and create an auditable end-to-end view of supply chain operations. The paper concludes that blockchain will become an essential infrastructure component of digital supply chains but requires industry-wide standardization, cross-border legal harmonization, and integration with IoT, AI, and cloud technologies for full maturity.