Abstract
This research aims to examine the effects of IoT and blockchain on SCM in the context of IoT MNCs operating in the English-speaking world. By using only secondary data, the paper analyzes how these technologies support the transparency, effectiveness, and security of SCM activities.
As a part of the explorative research, dominant themes supported with real-life case scenarios and statistical data are employed to understand the main advantages and disadvantages of implementing these technologies in supply chain contexts. The research methodology adopted in this study is aimed at following the research onion model and making use of literature for the analysis of the findings.
Research shows that tracking has escalated, risk is managed effectively, and costs have been substantially reduced; however, issues such as technology incorporation and cost remain critical to solving.
Introduction
When crossed with IoT and blockchain technology, the supply chain was reinvented, and the way it was tracked, managed, and delivered was changed. Unilever and Rolls-Royce among English MNCs are implementing the above technologies to fashion integrated, transparent, and highly resilient supply chains in the current world economy.
IoT would help in tracking assets in real-time, on the other hand, blockchain will provide the chain of data in a distributed system thereby ensuring that data cannot be altered.
This research assesses the applicability of these technologies in supply chains by examining their deployment in English MNCs and explaining their part in managing the main SCM issues including inefficiencies, and opacity.
Aim and Objectives
The primary aim of this research is to evaluate how IoT and blockchain technologies contribute to creating a seamless supply chain management process. The specific objectives are:
- To analyze the key benefits of IoT and blockchain technology in SCM.
- To explore the challenges faced by MNCs in adopting these technologies.
- To assess how English MNCs have implemented IoT and blockchain to optimize their supply chains.
- To identify the role of these technologies in addressing issues such as transparency, risk, and cost management.
Literature Review
The use of IoT and blockchain technologies for SCM has been receiving a lot of interest in the recent past. Kshetri (2018) has reported that IoT helps in improving the real-time control of assets; on the other hand, Blockchain helps in the security of data by providing an open register of transactional data.
Statista’s report indicates that the blockchain market size in SCM is expected to be worth $3. US31 billion by 2026 an indicator of the firm’s growing dominance. For English MNCs such as Unilever, these technologies assist in matters of traceability, and customer protection from fraud and Counterfeiting which presents a competitive edge for them (Unilever Sustainability Report, 2023).
Earlier research has also revealed that status information of products is important for their condition such as temperature and locations of IoT devices especially useful for perishable items (Kamilaris et al., 2019). On his part, blockchain fosters trust amongst different players in the supply chain through some of the principles pointed out above.
However, some of the peculiarities which have been typical for the early stage of the implementation of traditional BI systems are still present: high implementation costs, including the costs associated with the integration of new tools and systems with the existing ones; and concerns related to data protection.
Methodology
This research utilizes a secondary research approach as described by the research onion (Saunders et al., 2007). The stages of the research onion determine the type and choice of data collection methods to be applied and the techniques that are appropriate for analysis.
Philosophy: Positivism has been adopted for embracing strictly analytical techniques based on data which is collected from outside sources such as annual reports of the company and industry reports.
Approach: A deductive approach is employed with an emphasis being on reviewing the theories that are in circulation regarding IoT and blockchain in SCM.
Strategy: Based on the real-life usage of these technologies real-life case studies have been conducted involving English-based MNCs, majorly Unilever and Rolls-Royce.
Choice: In approaching data collection, a single source of data collection is used; hence, secondary data collection is employed.
Time Horizon: An exploratory study focuses on the existing state of IoT and blockchain implementation in SCM.
Techniques: Secondary data analysis in the form of industry reports, journals, and case studies have been scanned and coded thematically to determine recurrent patterns.
Findings and Discussion
Theme 1: Transparency and Traceability
Real-time tracking of products is one of the greatest advantages of IoT in SCM. For instance, the supply chain management is enhanced by the IoT sensors by giving real-time data to Unilever on the location, quality and movement of the products.
Blockchain serves the purpose of complementing this in the sense that every completed transaction is fixed, and cannot be altered. From a Deloitte report from 2023, MNCs which have adopted blockchain in their supply chain have been able to realize a 60 per cent boost in transparency and traceability.
Theme 2: Risk Management
Security is achieved in blockchain because its supply chain ledger is distributed so that no individual party can change essential data. This has been particularly effective for Rolls-Royce especially when it comes to the issue of spare parts originality with blockchain used to prevent the use of fake spares.
Based on the research conducted by PwC (2022), it was established that blockchain helped cut the supply fraud risk by 45%. IoT on the other hand reduces the risk that is associated with damage to products by giving timely notification when the product condition is out of the required standard (IBM Supply Chain Report, 2022).
Theme 3: Efficiency and Cost-Effectiveness
Despite the relatively high costs associated with integrating IoT and blockchain at the early stages, returns that such solutions offer eventually result in more significant savings.
The use of these technologies increased the visibility of operations and eliminated much of the manual work which honoured Rolls-Royce with a 25% decrease in their operating costs as stated in the Rolls-Royce Annual Report, 2023.
The Internet of Things (IoT) devices also minimized wastage through tracking and assessment of conditions of products that require handling with care such as perishable goods to avoid getting spoiled on the way. According to Statista, the IoT-integrated global supply chain model is 30% more efficient than a normal GSCM.
Summary
Both IoT and blockchain have tremendous opportunities in ensuring effective and secure supply chain operations since they enable MNCs such as Unilever and Rolls-Royce to provide complete operational transparency to their beneficiaries.
Still, there are high integration costs and problems with data privacy though transparency, risk management and efficiency offsets these challenges. This research shows that such technologies help to improve efficiency and contribute to the company’s competitive advantage in the world market.
Appendices
- Kshetri, N. (2018). Blockchain’s roles in strengthening cybersecurity and protecting privacy. Telecommunications Policy, 42(4), 311-319.
- Unilever Sustainability Report (2023).
- Kamilaris, A., et al. (2019). The rise of IoT and blockchain technologies in agriculture. Computers and Electronics in Agriculture, 157, 75-87.
- Deloitte Report (2023). Blockchain in Supply Chain Management.
- PwC Study (2022). Risk Management through Blockchain in Supply Chains.
- IBM Supply Chain Report (2022).
- Rolls-Royce Annual Report (2023).
- Statista (2023). Global Blockchain Market in Supply Chain Management.
