Value of Information Management in Closed Loop Supply Chain with Blockchain Applications

Abstract

Purpose: Rapidly developing information technology increases expectations for obtaining much more efficient structures by providing accurate, sufficient and secure information sharing in supply chains as well as in many other fields. Traceability is a critical element in supply chain management, especially in security-sensitive sectors such as food, medicine, etc. Blockchain is a decentralized record platform that provides traceability, transparency and security, and it shows promise in alleviating traditional supply chain management problems and making a positive contribution. This article aims to improve the relevant literature by revealing the level of impact of blockchain technology on supply chain management.Methodology: First of all, a traditional closed-loop supply chain (CLSC) network was designed and modeled. Then, the main model was developed by creating four more scenarios for different applications of the blockchain technology to the existing model and the application results were analyzed.Findings: This paper demonstrated the implementation of blockchain technology in forward and reverse flows activities coordination for effective and efficient supply chain management, and the resulting gains by developing appropriate models through explanatory scenarios. The implications showed that blockchain technology could significantly reduce supply chain costs.Originality: While blockchain technology is gaining attention, there are very few studies focused on its integration into the supply chain. Apart from the applications in the field of finance, the most important contribution and originality of the study is the application of the blockchain to CLSC from different aspects as partial, full, only forward flow and only reverse flow.