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Cloud Based Supply Chain Management System Using Blockchain

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DOI: 10.1109/ICEECCOT46775.2019.9114692

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2019 4th International Conference on Electrical, Electronics, Communication, Computer Technologies and Optimization Techniques (ICEECCOT)

Cloud Based Supply Chain Management System

Using Blockchain
Mani Deep Karumanchi J. I. Sheeba S. Pradeep Devaneyan
Department of Computer Science and Department of Computer Science and School of Mechanical and Building Sciences
Engineering Engineering Christ College of Engineering and
Bapatla Engineering College Pondicherry Engineering College Technology
Bapatla-522102, India Puducherry-605014, India Puducherry-605110, India
manideep.karumanchi@becbapatla.ac.in sheeba@pec.edu pr.signs@gmail.com

Abstract— Within a few years, many companies are [4]. However, the use of the cloud-based solution also
adopted by the new Supply Chain Management (SCM) system creates a new type of risk factor for SC [5].
for offering various services for customers. The lack of services
makes a supply chain (SC) to degrade in operational efficiency,
reduction in transaction cost, quality and customer satisfaction.
To take over this aforementioned problems cloud computing
(CC) is one of the best choices in SC by providing a platform,
infrastructure, faster deployment, secure access and software
solution for the entire SC. According to a recent survey, the
storage of data in cloud-based SCM is also a risky due to loss of
stored data, credentials, etc., so we mentioned trust as the main
problem for financial and operational benefits. To provide
trust to the SCM, blockchain is introduced to record
transactions efficiently, providing trust between business
partners, information security, extended visibility, and product
traceability. Furthermore, the determination of this review is,
to improve a deep understanding among the current research
state and on that identifying the future challenges. Thus an
investigation is presented for trust and security approach using
blockchain to develop a new Supply Chain framework in a
cloud environment.

Keywords— Supply chain management, Cloud computing,

Block Chain, Security, and Trust.
I. INTRODUCTION
A. Background
SCM is the art of management consists of a good flow of
services and provides the right product at an accurate time
with adequate costs for the customer. It also makes
coordination and association together with channel followers
namely providers, customers and third-party suppliers
[1].The function of SCM model integrates the demand
management and supply within and between companies [2].
But, nowadays the CC occupies an excellent position in the
IT infrastructure, offers an on-demand computing service
with high availability, reliability, and scalability [3].
Consequently, many companies are adopting CC technology
for business domains, so supply chain organizations are also
moving towards the CC environment. CC also offers many
other services through its service models IaaS, PaaS, and
SaaS, as shown in Fig. 1. Due to the efficiency of
organizations in SC is highly influenced by increased costs.
But, the use of CC in SC provides a powerful soul in SCM
that includes a reduction in start-up costs, response times,
integration, delivery times and increased SC visibility. The
growing demand for the cloud-based supply chain is
increasing dramatically. The 2011-2013 research study
indicated that the use of SCM in the cloud increases the
cloud sector by 40%. There are some advantages that
facilitate tradeoff, flexibility and onboarding optimization
Fig. 1. Cloud Computing service models.
Due to the disadvantage of the cloud-based SC and its
growth characteristics, lack of trust and security, the
researchers continue to research the data transmission
between companies using cloud services. The most critical
factor in CSCM is trust because it provides flexibility and
agility to a different organization. By improving trust, the
possibility of successful cloud-supply chain relationship, to
reduce the transaction costs with the better performance [5,
6]. The trust establishment in SCM is even hard to maintain
the function of the CSCM, it increases the level of risk. The
performance of the CSCM also arises security issues [7]. To
overcome these problems, the Block Chain is used with
CSCM.
Blockchain is a public ledger, programmed to record and
track everything [8]. It uses cryptography and digital
signatures to prove access, authenticity, and identity. It can
be implemented in many different forms because it is not a
single network. The blockchain with SC leads a tamper
proof data and increases the end to end visibility to build
trust between various parties [9].
B. Literature of SCM
The function of SCM uses integrated and process-
oriented approach type for managing, controlling, and
designing the supply chain [10]. The concurrent area where
the SCM takes place is transportation, customer service,
forecasting, etc. In the 1980s the SCM was first used as

978-1-7281-3261-7/19/$31.00 ©2019 IEEE 390

logistics management for different business function such as
manufacturing, sales, distributing, and for purchasing. Later
an integrated approach is combined to form a firm boundary
between suppliers and customers. On account of seeing the
supply chain in the global formulation, it shows that SCM is
the integration of key business process between the end user
and supplier. SCM provide service, information, and product
based on adding value for the stakeholder and customers
[11].
C. Literature growth of SCM in Cloud Computing
In today's environment, companies and industries have
started to flexibly outsource their production product. This
makes the development in supply chain operation and
interaction processes with many parties. But, in today’s
environment, SCM makes more difficulties in business areas
for reducing cost, product quality, and accurate real-time
visibility, therefore a cloud is offered for SCM development.
Cloud computing (CC) is one of the new services adapted by
many companies for good services by providing outsourcing
software. By adopting cloud-based supply chain
management, it offers better alternative support for IT [12].
This service helps provide integrated interactive processes to
reduce information inconsistency by neglecting unwanted
problems. Furthermore, it develops and manages the
database that contains data relating to different users by
developing an organization to regularly treat hundreds of
thousands of suppliers. But during that cybercrime,
regulation, and fraud have increased because inhabitation
expansion problems occur in this CSCM model. To provide
a problem less service there needs a lot of trusts using the
CSCM and security [13].
D. Literature growth of Block Chain in Cloud-Based Supply
Chain Management (CSCM)
To provide trust and security to users in CSCM, the
blockchain (BC) is introduced in the SC model [14]. By
combining SC with blockchain provides expected trust in
data transparency and accounting in SC networks, by
allowing a more flexible value chain. The CSCM can
provide data protection and reliable management over third
or fourth logistical parties. It also offers a lower exchange
cost with a trusted contractor to monitor without any third
party interference. In CSCM, blockchain accurately
measures the quality of the product during transport and
guarantees a high level of security for storing all the data in
the central database. The blockchain terminates a transaction
record through the job authentication process when an
electronic money lender forms a block by combining
transactions on the network [15]. The advantage is, offer a
well organization among the entire SC, a better service to
the consumer, product address, etc. Finally, it offers a new
decentralized architecture from the intelligent transport
system
The remaining segments are structured as follows:
Section 2 contains the preliminary of the survey. Section 3
describes the taxonomy of SCM in Cloud Computing.
Section 4 analyses the role of the blockchain and the trust
and security issues in cloud-based SCM. Section 5 presents
the proposed framework. Finally, Section 6 concludes the
overall survey.
II. PRELIMINARY OF THE SURVEY
Some of the contribution and the scope of the survey on
Cloud-based Supply Chain using Blockchain are listed
below:
A. Contribution
• Understanding blockchain functionality to meet the
key challenges of Cloud-based SCM objectives.
• Emphasize the growing interest of CSCM and
identify the key research flow across the trust and
security.
• Provide a road map of hopeful research
possibilities, opportunities and challenges for
which future research on CSCM trust and security
is needed.
B. Motivation
The motivation for this work brings the following
question, (i) what measures need to be taken to increase the
trust, availability and integrity strength of the CC in the
SCM? (ii) In what way is security guaranteed for different
users in cloud computing using various requirements? (iii) If
the damage occurs in the security of the CSCM system, what
are the possible solutions to manage? (iv) Did the cloud-
based SCM detect the integrity, the vulnerability of the
system? (v) How can data be secured in the cloud system?
According to the Certified Security System Professional
and the Common Body of Knowledge, the above questions
are responded by the security architecture based on
application security and data security, then an analyzing is
carried over ten domains to make threats and control
measures over the above questions. Some of the domains
used to measure security and trust are: Network security
includes telecommunications, Information security such as
legal regulations, Physical security includes disaster
planning and business continuity and finally, Application
security such as access control and risk management. The
results of this research provide a simple and robust solution
for the security of various CC data and applications in a
supply chain environment.
C. Scope of the Survey
The Scope of the survey is listed below:
• The main scope of this review carries trust in CSCM
by using the block chain for the transition security
and data privacy in the cloud.
• Various activities and techniques conducted in CSCM
are discussed to address the issues for the future
research direction.
III. TAXONOMY OF SCM IN CLOUD COMPUTING
This section, we discussed the taxonomy of SCM type
used in a cloud environment. Here the SCM cloud is
classified based on two dimensions, such as SC
configuration and SC coordination [13]. This survey model
has been designed as the cloud-based SCM model, which is
based on to solve the trust and security problem in data
transaction recording in the cloud.
The CSCM that combines three or more users by
providing cloud services [16]. When the traditional supply
chain is shifted to cloud service, it first identifies the
technical requirements of the companies. Because the
391
activities of the supply chain are migrated with cloud
services. Here the transformation process is accessed by the
cloud lifecycle that can transform the data and improve
recurrently [17, 18]. It has some process for computing
technology such as planning/forecasting,
procurement/sourcing, logistics/spare part management are
the most common activities in the CSCM model. The
structure of the CSCM is shown in Fig. 2.
Fig. 2. Structure of the CSCM model.
Forecasting and planning:
This cloud-based SC system is used to assign the
transaction data’s, and analyse the basic performance of the
companies. Then schedule the run manufactures and execute
the statistical forecasts. These are used to improve the
organization service level with the supplier network (retailer,
distributor, and suppliers).
Sourcing and procurement:
In cloud computing the most commonly cited success
metric is sourcing and procurement, used to reduce the
property costs. In CSCM, the tools used in clouds are
inherently accessible and collaborative. For these reasons,
these keys are used to deal regularly with thousands of
suppliers in the organization.
Logistics:
This cloud-based service provides logistics tracking
operations among multiple SC partners, so it is also useful in
transportation management and warehouse management
system. The main process of this service is order processing,
route planning, and trade-off between global compliance for
cloud migration.
IV. ROLE OF BLOCK CHAIN IN SCM
The main objective function that has been taken into
consideration in SCM is cost reduction, good quality
service, high-speed data transfer, flexibility for all services,
elimination of the risk factor and reliability [19]. But, the
growing demands of the Internet of Things (IoT) will affect
SCM's performance. For this reason, the only possible
solution is the adaptation of the BC in SCM for their
operation. The use of the BC in the supply chain provides a
possible solution to consider the time and location where the
actions take place. The role of the CSCM using blockchain
is given in Fig. 3.
Retailer
Manufacture
Distributer
BC
Raw
materials
End user
Wholesalers
Fig. 3. Interaction of Blockchain Distributed Record and Transaction
Technology role in CSCM.
Transactions together with the blockchain are safer,
more efficient, transparent and traceable provided increased
expenses among SC members. Trust is one of the main
things that allows customers to safely use cloud-based
supply chain management. The BC function offers great
customer confidence, allowing you to verify the full path of
the asset through the supply chain. BC system supports the
identification of fraud prevention across the product and
fake transaction over the supply chain by using a traceability
mechanism. As a result, the supply chain has increased in
cost reduction and efficiency.
The key characteristics of the blockchain include:
Digital: All the information of the BC is changed into digital
form, to eliminate the manual document.
Distributed: The transaction of the blocks is carried out in
distributed form for multi-organization business such as
supply chain.
Decentralized: No need for a central authority, because all
the nodes carry their own data in the system. Use consensus
algorithm to maintain data both in a distributed and
decentralized network.
Immutability: Once the data transaction is entered into the
BC, it is impossible to delete or rollback transaction. If
someone tries to record the transaction it makes provenance
assets.
Consensus: It keeps the fraud transaction out of the BC.
Here agreement during a transaction is used to check whether
the transaction is valid or not and ensure the integrity of the
system.
392
Anonymity: An interaction can be easily generated between
the block chains to the user with a generated address. There
is also some alternative blockchain protocol used for
providing highest privacy because the bitcoin cannot provide
good privacy preservation.
Traceable: Each of the private and public transaction is
digitally signed and time stamped. Therefore it is easy to
trace and verify the transaction.
A. Providing Trust and Security using Block Chain
1) Trust in SCM using the blockchain: In this section,
we analyze what are the current methods used to build
customer trust in CC, also its reason in cloud services.
To transfer the confidential data to the cloud-based SCM
they need a lot of trusts to store their sensitive information.
Due to the new ingredient in operational models, complexity
has increased. This makes trust between supply chain
members, accountability and transparency through
networking and collaboration [20, 21].
Trust is one of the basic entity in online selection and
transaction together with confidence [22]. The distrust in the
cloud includes a lack of security, control, reputation, and
transparency. The various types of models used to handle
trust in cloud-based SCM are
a) Reputation-based trust approach: It is the first trust
method, based on the history of interaction, to pick out the
correct services from the cloud. After the selection, it is less
relevant to the user, so there needs solid assurance.
b) Transparency based trust approach: It is the next
step performed after performing the first approach. This
approach typically used to gain the information, so that the
users can make an idea over cloud service function which is
suit for their business application and can provide more trust
to cloud.
c) Security based trust approach: This
securityapproach makes trust over the assurance of data
would be safe in the hand of cloud services.
d) Agreement based trust approach: This approach
provides added guarantees for users that the cloud services
would act according to the specified terms.
A single solution is not well suitable to address all the
trust issue. By integrating BC together with supply chain
provide a good potential to transform the relationship
between the network member, increase efficiency and
transaction cost [23]. The relationship between the
stakeholders is highly affected by the supply chain. Some of
the related work is:
Kshetri et al. [19] `BC technique is a digitalized,
decentralized and large financial ledger of all cryptocurrency
transaction. The function of BC includes supply chain, food,
and power. These areas are probably valid for BC. It is used
to estimate the accurate quality of each product during the
data transaction. This decentralized approach is also used for
multi-case studies. The performance of the process is based
on two-step of function selection of cases and source and
characteristics of the data. Initially, the cases are classified in
terms of IoT and BC development. The degree of each case is
validated by a high and low degree of various attributes of
interest. This source selection makes the BC deployment in
financial activities and supply chain.
Ahram et al. [24] have considered the cybercrime,
increase regulation and fraud are inhibiting expansion
problems, and to overcome these issues the BC is used. It
can enable more agile value chains, Quick integrate with the
IoT, and cloud technology. Also, it provides low exchange
costs with reliable monitors without the intervention of third
parties. The BC consider data protection, professional
responsibility. Here the BC is used for Health Chain (HC),
in this field it offers the optimal solution and update an agree
records of Protect Health Information (PHI). In industries
field, it creates a better innovation product and makes the
global relationship between the customer and social media,
mobile, IoT, and cloud technology.
Daniel E. O'Leary [25] have investigated the
configuration of various BC that is used for the transaction
of information in different range, auditing, and supply chain.
This paper argues about the private BC, it will dominate
corporate BC uses. This BC analysis information contains
sentiment analysis and natural language to facilitate the
additional use of content.
Lee JH, Pilkington [26] have analyzed the winds of
currently changing blowing on the global consumer
electronics industries. Here, the revolutionary of BC on
SCM is also discussed for the potential use of Consumer
Electronic (CE). Normally the CE industries consider multi-
user buildings, vehicles, etc under this combined impulse of
cost-cutting strategies of CE and technological innovation
the demand and competitions are increased. To solve this
problem the BC technology is used because it can ensure the
traceability of supply chain and transparency.
2) Security in SCM using the blockchain
CSCM security forms the subdomain of network
security, information security, computer security, etc. The
CSCM security is used to control and to protect data and
applications of the cloud system [27]. Some of the CC
security risks are the loss of intellectual property, loss of
control of end user, malware infections, etc. CSCM security
is not the same as the security software in the cloud system.
The main focus of cloud security is to arrange these three
service delivery models to any of the four deployment cloud
models such as public, private, community and hybrid cloud
with five important characteristics of the cloud. It aims to
achieve a secure cloud system and the same way it’s
complicated in today’s environment. Therefore the security
has many features such as authentication, networks, data
storage, virtualization, data transmissions, and physical
hardware, etc. The cloud computing security can be used in
software, hardware, human resources, patch management,
filtering, and virtual machines instances provide the security
for cloud environments found in the internal data centers
that will be matched. It is essential for helping modern
organizations compete and for allowing service providers to
meet the needs of the customer.
Multiple locations: Cloud Computing provides multiple
economic resources such as redundancy, disaster recovery,
and independence from failure.
Edge networks: CC provides the reliability, quality increase,
less local network problem for storage, delivery, and
processing.
Improved timeliness of response: Cloud providers larger to
incidents or larger scale networks, which is effective in
malware implementation.
393
Threat management: Small enterprises do not provide
resources to the specialist for security purposes but cloud
computing provides better threat management.
CC communication is an important technique used for
many network applications. It has many advantages
according to their applications. But it has major security
issues as given below:
a) Data Security:
Data is an important input system for wireless
communication purpose. Data should be secure for
communications. So the data security is an important
process in the encryption standards. Puthal et al. [28]
presented a new key exchange method, named as the
dynamic prime number based security verification
(DPBSV). The main aim of DPBSV is to provide secure,
efficient, authenticate and fast verification of data streams.
They focused on the basic design based on cryptography and
similarly consider the prime number generation. Moreover,
it reduces the computation overhead and achieves the
confidentiality, availability, and integrity of the system.
b) Network Security:
A large number of users’ data’s are flow through the
network, so the network should be secure for
communication and prevent leakage of data for encryption.
Wang et al. [29] have proposed the Random Infection Based
on Modified Benes Network (RIMBEN), an infective
control measures that prevent fault attack in the high
performance of the cryptographic security process. The
random function can be provided with the Benes network for
changing the topology. RIMBEN mainly based on the block
cyphers. Consequently, it does not represent mathematical
representations, so a loose coupling was formed between
control measures and algorithm. This method cause
randomization problem based on infective methods.
c) Web Application Security:
Web security is based on network management in cloud
computing. SaaS application manages web application
security for browsing. Because the software service model
provides the software for each users demand. Therefore, the
web browser should be secure for further process. Pokharel
et al. [30] proposed the adversary model, which is used for
the study of security lightweight browsers, which was an
easy way for accessing a cloud computing system. For this
model, a prototype application model was introduced.
Therefore, they used four lightweight browsers for the
studies and determined the Dolphin UC browser and CM
browser for the storage of encrypted data in the cloud
system.
V. PROPOSED FRAMEWORK
This proposed work developing an effective model of
supply chain technology by integrating the blockchain
technology process along with the strategy of enhancing the
performance through the collaboration of SC partners. The
SC defines the conceptual map of the process involved in
selling the product manufactured to the end user. The
difficulties observed will be in terms of payments between
the vendors, suppliers, and customers which take lots of time
to process and transfer of product with several geographical
locations. This limitation can be overcome through the
integration of blockchain with supply chain technology.
Blockchain technology comprises the individual protocol
developed and owned by its entities to frequently validate
the updates through a commonly owned ledger. Individual
transaction through the supply chain are noted through a
digital register and numerous dealings are undergone
through the formation of a block. Once the predetermined
amount of each block is documented and added to the
general register. Grouping of numerous blocks in the supply
chain forms a blockchain.
The proposed system block diagram is presented in
Fig. 4.
Data Analysis
Input BAT
Analysis on
Data Module
Process Findings
Fig. 4. Block diagram of proposed system.
The process for the proposed work flow system is as
follows,
• Input Data: In this research, the data comprising
the details regarding case studies of the particular
organization is obtained from either one of the
sources namely literature search, research
approach, and the qualitative approach.
Furthermore, the additional data required for the
analysis is obtained through the participation at
blockchain seminars and certain webinars of the
company.
• Data Analysis Process: Where five logical steps,
namely reassembly, compilation, dissociation,
deduction and conclusion, are analysed in collected
data and opinions in the data entry process.
Compilation of the collected data into one bank
from all sources and that was recognized by
assembling the data. Each bank will be defined in
terms of individual block followed by the formation
of numerous blocks to form a blockchain. In this
research, the smart contract technique is deployed
as a protocol to create a contract amongst the
individual parties. Furthermore, the trustworthy
parameters are also introduced in the research
process namely integrity, transferability,
conformability and reliability to evaluate the
trustworthiness in the system.
• Block chain Authentication and Trust Module
(BATM): The use of the blockchain in BATM [31]
suggests a new way to authenticate on the network
to store the public keys, peer information and
digital signatures in the database. By allowing each
component, the network validates the information
about another node. The initial requirement to
develop a trust model is achieved from social
studies to distinguish relations amongst the people
and society. BATM module comprises with a
human-like knowledge-based trust to develop trust
amongst individual node. This is followed by the
development of a network node trust evaluation
model.
• Analysis: The performance of the system in this
research work is evaluated in terms of the
parameter of trust and reputation.
394
 VI. CONCLUSION
The biggest challenges in Supply Chain Management are
providing trust between the trade partners, enormous
involvement of intermediaries, and dynamically changing
requirements for the changing demands of the system. The
proposed system eliminates the security-related concerns
and intermediary’s involvement by integrating Supply Chain
Management with Blockchain and it deals with changing
requirements by using Cloud Computing where one can
easily scale up or scale down the resources as per their
requirements. As the survey work of this article, we consider
many CSCM solutions and their classifications, and the
trend solution of BC is discussed. Furthermore, it is able to
measure the current CSCM techniques and Block Chain is
considering more metrics for their assessments.
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