# Blockchain for Supply Chain: From Promise to Practice Content type: Research Paper Summary: This working paper provides a sober, evidence-based assessment of blockchain applications in supply chain management. Moving beyond the typical hype surrounding the technology, the author examines the gap between the theoretical promise of blockchain and its practical application in industry. The analysis identifies several 'myth vs. reality' scenarios, specifically regarding cost savings, disintermediation, and trust. The research uses empirical case studies to demonstrate that many supply chai Key concepts: E. Strehle, strategy, implementation, roi, coordination, logistics, critical analysis
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Blockchain for Supply Chain: From Promise to Practice

E. Strehle

PreprintJanuary 2020

Abstract

This working paper provides a sober, evidence-based assessment of blockchain applications in supply chain management. Moving beyond the typical hype surrounding the technology, the author examines the gap between the theoretical promise of blockchain and its practical application in industry. The analysis identifies several 'myth vs. reality' scenarios, specifically regarding cost savings, disintermediation, and trust. The research uses empirical case studies to demonstrate that many supply chain problems are more effectively solved by traditional centralized databases rather than blockchain, unless issues like multi-party trust and censorship resistance are paramount. The paper serves as an essential sanity check for decision-makers, emphasizing that blockchain is a niche tool for specific coordination challenges rather than a panacea for all logistics inefficiencies.

Key Findings

  • 1Blockchain is not a universal solution and should only be applied to specific coordination problems.
  • 2Centralized databases often outperform blockchain in terms of efficiency and speed.
  • 3Multi-party trust is the key prerequisite that justifies blockchain implementation.
  • 4The industry suffers from excessive hype that obscures realistic ROI timelines.

Topics

strategyimplementationroicoordinationlogisticscritical analysis
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Citation

E. Strehle (2020). Blockchain for Supply Chain: From Promise to Practice. Preprint. https://www.blockchainresearchlab.org/wp-content/uploads/2020/05/BRL-Working-Paper-No-12-Blockchain-for-Supply-Chain.pdf

BibTeX

@misc{blockchainfor2020,
  title = {Blockchain for Supply Chain: From Promise to Practice},
  author = {E. Strehle},
  year = {2020},
  howpublished = {\url{https://www.blockchainresearchlab.org/wp-content/uploads/2020/05/BRL-Working-Paper-No-12-Blockchain-for-Supply-Chain.pdf}},
}

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