Digitization in Supply Chain

: Opportunities of Implementing Smart Contract in Supply Chain of Logistics Industry

Abstract

This study aimed at investigating the impact of smart contracts on transparency, decision making, planning and risk management of the supply chain functions in a business. The study opted for positivism research paradigm and quantitative research approach following which a survey was conducted. The study clearly proclaimed the efficacy of Blockchain stating that it is undoubtedly among the most contentious ideas out of all of them. Smart contracts and blockchain-based
platforms may take the role of centralized platforms, which lowers transaction costs that would otherwise result through uncertainty. In fact, smart contracts make it possible for a contract to automatically self-enforce itself when certain requirements are satisfied. The need for a reliable authority to carry out the contract's enforcement is removed because smart contracts are actual objects which function in a decentralized manner. As a result, this new technology lowers the costs associated with information collection and processing, contract writing and negotiation, monitoring and enforcement of agreements, and relationship management, permitting broader market-based governance structures in certain situations. Since smart contracts appear to be a viable source of effectiveness that is minimizing costs and availability of the data which also helps in the collection of information from business partners, the quantitative survey of employees
(Qualtrics) revealed that smart contracts have just been implemented by companies in accordance with the requirements of the business market. They reduce human mistake, foster digital trust and customer’s engagement, and do away with needless intermediaries. Additionally, the deductive investigation concluded that it is simple to use smart contracts, which boost logistical operations' performance by making real-time data available. In this approach, research has shown that smart contracts mitigate risks and improve business performance by paying the smooth way of development; however, the findings were based on only a survey which opens up opportunities of more research for the future researchers to adopt multiple approaches of data collection and analysis in order to gain an in-depth insight about the data trends.

Date of Award	21 Dec 2024
Original language	English
Supervisor	Jason Wang (Main Supervisor) & Tribi Budhathoki (Co-Supervisor)