Vertical coordination in agri-food supply chain and blockchain: A proposed framework solution for Vietnamese cashew nut business

Abstract

The agri-food supply chain has been a popular research topic in recent years. The combination of a demand for products of high quality and safety standards and the increasing number of stakeholders in supply chain networks has required the agri-food business to transform from vertically integrated to vertically operated supply chain networks. Nevertheless, this traditional agri-food supply chain form has exposure to some drawbacks. Meanwhile, blockchain technology as a disruptive technology today has the potential to provide value-added contributions towards multiple-disciplinary applications. Blockchain technology gains success and proves its functionality in improving the current supply chain by ensuring traceability, transparency and efficiency across the network from farmer to consumer. Therefore, the purpose of this paper is to review the existing literature on vertical coordination in the supply chain and its mechanism and to develop a framework that explores how blockchain technology can address the challenges in coordination mechanisms. Furthermore, taking the current Vietnamese vertical coordination cashew supply chain as a case study, this research is based on the proposed framework to suggest a solution combining blockchain and other relative technologies for the Vietnamese cashew business. This paper will close a research gap, as the blockchain-based supply chain for Vietnam cashew nuts has potential benefits for each supply chain actor in terms of effectiveness in operations, costs and time-saving, and human resources.