Blockchain Usage in Supply Chain Management

Most of the developing countries are using traditional supply chain to deliver food product or service from supplier to consumer end. This paper introduces a model for those developing countries which will provide them a smarter way to handle the product, information as well as flow of funds. This paper also investigates how to make contract between parties of food supply chain in an efficient way using latest technology; which will also help to reduce the cost of final product through the value chain system. As developed countries already adopting and implemented the system, this research will be a finest guide for implementing a smart model for food supply chain which can be monitored and traced easily by farmers and consumers in developing countries.

Supply chain management (SCM) is the dynamic management of supply chain activities to maximize consumer value and attain a sustainable contentious advantage. It represents a perceived effort by the supply chain firms to acquire and drive supply chains in the most effective & efficient routes plausible. A supply chain is a global interface used to transfer products and services from raw materials to finish customers by a superintendent issue of information, dynamic sharing, and cash. A basic supply chain is made up of these things seller is a supplier who furnishes goods and services or a person or organization with which the buyer does business their general term in a marketplace is a sailor. The supplier provides materials energy services or components. a producer who takes components from the seller to manufacture finished goods and services. The customer is one who takes the finished product that is the one which is ready to take. To obtain a competitive advantage, a company eventually passes more value at an equivalent level or below cost. Value chain analysis is the technique for circumscribing the critical route to intensify customer value while diminishing costs. The overall aim of value chain analysis is to classify spheres and activities that will benefit from a change to boost profitability and effectiveness. Value chain analysis is more than a straightforward cost-to-profit design. It elaborates on the origins of economies of scale and volume.

Agriculture is the concise digitized business. Farming fumbled out on a lot of the interests of the internet the first time around, simply due to a lack of connectivity and we're really confirmed that farming doesn't drop out again Agriculture supply chains are astonishingly complex. its approach from a long history in agriculture, our originators were in a position early on to see the impression block chain could have, particularly when we're thinking of agriculture as a supply chain or value chain rather than within bizarre, individual firms. [1] Blockchain also empowers the growers to make healthier and more knowledgeable decisions throughout where to sell their goods.

The proposed model for agriculture supply chain model is completely digitalized and smart as well based on the latest technology that has already being practiced on developed countries. Blockchain is the newest concept for supply chain management and the model will use this concept to make smarter the food supply chain from supplier to consumer end. We call it SFSC (Smart Food Supply Chain) based on Blockchain; when two supply chain meets it will create blockchain. To require a precise information, we need a specific record so that everyone can grasp a clear idea about this goods and service, that would be possible.

The block chain is linked to bitcoin or it’s called cryptocurrency, originally, it had made for a financial transaction but now it is remodeling in the business world uniquely in a supply chain. A blockchain transaction is between user to user, so when there is a transaction that data is listed in a shared block and these blocks are combined together to make blockchain like a shared Google docs. Transaction efficiency is encouraged by the fact that consensus reveals accuracy. In a blockchain database, every associates or junction keeps a copy of the shared entries and each action on the blockchain has recorded in the computer system which has shown who the parties do, and transaction specifications and time cast with each comprising a different math-based encrypted signature. This digital signature is a key as it allows an individual block of information to be securely attached to all the rest. it’s a system of full transparency and connectedness that furnishes the blockchain its assurance and trustworthiness, this attachment presents an audit tracks of every transaction that's over transpired in a system .so there had unofficial change each node has notified, and we can see where it studied place, they then would correspond to appreciate the evolution as factual or renounced.

Today in a supply chain data has stored in cribs like Microsoft word sharing file but blockchain data will be deposited public ally in a shared database, by using one can know the sequential story of one product. There is no plausibility to trick because everyone has used the system is the following. the blockchain debacle is not going to appear overnight. But it is demanded to turn your lives like a wheel, electric device or internet. The blockchain is a new interface and it is going to help us to decentralize business and it is empowering us to do a lot of transactions much more peer to peer immediately. our use of go-betweens like companies or banks.

From farmer’s field to reach consumers plate, each time a goods changes hands. This time the transaction might be documented, Data can be permanently formed from production to sale. But sometimes it took more time and cost. If adopt technology, then there is a possibility to get everything on time. For solving agribusiness problems recently developed an app in our country. By this app farmers can solve all the problems without going anywhere. If there is a possibility to add some features more like farmers might relate to supplier, manufacturer, and other parties’ also it can be possible if supply chain management may be linked with block chain technology that will add more value and create a transparent relationship among all parties. Expert on agribusiness suggest using block chain because farmers will get the actual profit as they deserve from farming. Some supply chains have already used the technology. Collecting: Block chain technology will help farmers to collect different seeds from different side of the world. Documenting: By using this technology, here documented all materials what a farmer wants to sell like –Agro products (potato, mango, onion etc.) Tracing: This technology will help to record all purchase information, due orders, shipment information and other trade related documents. Verifying: Block chain helps to identify the product quality and certifications of physical products, for example defining if a food product is organic or fair trade.

Combining: Block chain reveals detail information of physical goods to serial numbers, bar codes, digital tags, promotion code and service code. For example; RFID. Communicating: Information about manufacturing process, assembly, delivery, and maintenance of products and product development with suppliers and retailers all can be determined by block chain network. Food stakeholders could establish an industry-wide platform to onboard and manage supplier relationships and review the quality of food products along the entire chain. Each user in the ecosystem would use a digital identity to access and participate on the platform. Smart contracts could be created to store and manage meta-data and events associated with supplier onboarding and relationship maintenance, such as:

1. Supply chain details (i.e., product components and associated lifecycle)
2. Quality certifications approved by regulated bodies (i.e., approved body, date, expiry data, date of last testing)
3. Endorsements given by food stakeholder (i.e., wholesaler, restaurants or end consumer based their own experience, reviews of the food quality). By using this onboarding platform, restaurants and wholesalers, for example, would have end-to-end visibility over the supplier relationship with real-time access to monitor and manage all supplier relationships. Currently, this is not possible in the marketplace. Platform users would have a complete audit trail of food ingredients they buy from the associated supplier and could prove the product is of specified quality by checking the quality credentials of each ingredient uploaded by the regulated bodies.

Suppliers are incentivized to maintain quality certificates to possibly increase and establish relationships with other upstream activity players. For example, if ingredients do not meet quality standards, the regulated entity could revoke the quality certificate and notify everyone in the network who has a relationship directly or indirectly with that supplier. Receiving real-time updates on food quality ingredients enables upstream players to make better sourcing and acquiring decisions and reduces the risk of reputational damage as there is more visibility of downstream activities. Endorsements could be provided by anyone who has direct contact with the food ingredient. For example, a wholesaler, restaurant or even the end consumer could provide a review or rating using an application, effectively creating a transparent review platform for the ecosystem. This would be the first platform to enable all supply chain stakeholders to interact with one another directly and share reviews to better improve the food experience for all. As restaurants become more technologically savvy, the incorporation of such applications into their service offerings would impact their consumer base. Model Food critics’ reviews and ratings could be incorporated into the solution to provide the end consumer with a 360-degree view of the food they are eating.

Internet-based explications and cloud technology must be erased many of the communications difficulties that once survived in the food supply chain. The ability to trace and control orders, record and freight can be done in real-time. Also, importantly, the capacity to move or respond to changes is considerably intensified. Due to the massive populations dwelling in towns, a scale between the resources accessible and those essential for enough functioning of a city to function satisfactorily does not exist. It generates a window of possibility for the application of Information and Communication Technologies (ICTs) to assure that a town can efficiently supply necessary services to its inhabitants.

Blockchain’s capabilities in supply chain management is an increasingly popular topic, with proofs-of-concept being developed across all industries. Early applicants can team with controlling parties and founding providers and to shape how blockchain technology will function in their industry. With challenges and risks clearly defined and evaluated, the final consideration is whether any business is ready to explore the new frontier of blockchain technology. This paper explores to harness this technology to make smart the existing food supply chain in a smarter way. Developed countries are already implemented this technology on their food supply chain. This paper represents a model; SFSC will give developing countries an opportunity to make their food supply chain smarter and reduce their product cost in value chain system. Researchers of related research will find this research helpful and this research can be a cornerstone for further research on Smart Food Supply Chain based on Block chain.