How will blockchains impact supply chains ?

An article in the Wall Street Journal titled “Toyota Unit Joins R3 Blockchain group” (June 23, 2016) describes Toyota’s plan for use of blockchain, an online distributed ledger technology, for non-monetary transactions. The article claims that blockchains can track auto parts across the supply chain, and, potentially, connect with customer smart phones or vehicle sensors.  The potential to react to disruptions either on the supply side or demand side through automatic signal updates suggests potential value across the supply chain. How should supply chain entities, from Tier 4 suppliers up to the OEM, plan their adoption of this technology ? Will independent platforms, such as R3, set the ledger standards, or will the final solution be a multitude of possible formats for distributed data tracking ? How will the benefits from such solutions be distributed across the supply chain so that participating entities realize a portion of the savings across the system ?

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About aviyer2010

Professor
This entry was posted in Collaboration, consumer, Cost, disruption, Global Contexts, logistics, manufacturer, Supply Chain Issues, technology, Uncategorized and tagged , , , , , . Bookmark the permalink.

One Response to How will blockchains impact supply chains ?

  1. Gautam Hardikar says:

    Thank you Prof. Aiyer for this post. With the tremendous power of Block chain capabilities, its usage beyond the traditional financial sector is highly a surprise. Supply chains can leverage these capabilities by establishing digital or smart contracts with other entities in the value chain there by significantly driving down the costs created by the intermediaries. However, the legal, operational and regulatory obligations need to be considered and developed before such contracts come into picture. Imagine mobile phone companies continuously shopping for best deals from network providers and latch on to the best available contract for the consumer instead of being continuously tagged to one provider.

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