A design of secure supply chain management system with blockchain technology

Abstract

Supply chain management is an integral part of most businesses because it could affect the sustainability of a business and the customer's satisfaction. Various computerized SCM system have been proposed in order to built an effective and efficient supply chain management system. However, these existing systems are based on centralized architecture and could not fully integrate the supply chain data from its members. Furthermore, a centralized system architecture has a higher risk to suffer from single-point-of-failure issue. In this paper, a secure blockchain-based SCM framework is proposed. The proposed SCM framework adopts a data verification mechanism through the use of a unique shipment security token. The shipment security token is distributed via 2 channels: the physical and digital token distribution channel. The 2 channels token verification method secures the data stored in the blockchain ledger and makes it easy to trace the product data in the blockchain network. A prototype based on the proposed blockchain-based supply chain model is implemented to show the feasibility of the proposed framework design.