Management Information System

LAB-1

Roll No : I068 Name : Harshita Rathore

Batch: - A3 Program/ Sem: MBA Tech-IT/V
Date of Submission: - 12-08-22 Faculty-in-charge: Professor Rejo Mathew

Topic: Block Chain

Detection of The Traceability Issues In  Supply Chain Industries using Block chain
Technology

1. How the underlying technology works?  

The capacity to track and trace product components as they move
through the supply chain is referred to as traceability. It is also regarded
as a risk-management tool that enables workers in the food business to
meet demands[2].
Block chain technology, which is often linked to cryptocurrencies like
bitcoin, offers a wide range of potential uses in the agro-food supply
chain. By boosting the public's credibility and trust in the data provided,
block chain supply chain innovations promote material traceability and
visibility, improve firm reputation, and then engage stakeholders to help
mitigate any negative publicity and damage from supply chain opacity.
[1]
 Figure - Block chain-based supply chain network

Most trades in the supply chain bring together dissimilar parties who do
not trust one another. Block chain assists in this and gets rid of
transactional duplicates and mistakes. [5] In essence, it is a ledger system
that stores the records of digital data, making them secure. Every time a
transaction is requested, this technology broadcasts it to a peer-to-peer
network of nodes, each of which solves equations to verify and
authenticate the transaction. Once the transaction is validated, it groups
with other transactions to form a block for the ledger. It is exceedingly
challenging to corrupt the data because the ledger is fully spread around
the network. [4]

2. Generally used in which sector of business ?

The implementation of block chain in the food supply chain reduces the
risk of false and illegal employment while also improving traceability. [1]
The technology is mostly used in supply chain management, but it is also
employed in the incorporation of regulators and even in voting, as block
chain offers a platform for the secure distribution of ballots. It is also
utilised in financial management, which represents the biggest
opportunity for block chain integration. [3]

3. How it is used in business and how it helps in business decision

making?  
The block chain offers efficiency and transparency, which are the
cornerstones of dependability and honesty. The supply chain
experienced significant disruption following the introduction of PCs. The
ability to adapt quickly is essential for businesses today, since only those
with the right innovations will win. As a result, it is essential to increase
the efficiency and transparency of the supply chain, which can only be
done with the aid of block chains. [3]

Block chain technology is being used for supply chain management by

large corporations like Maersk and IBM, who are working together to
develop the Trade Lens platform. By integrating with and enhancing EDI
systems, this technology is helping these corporations save a lot of
money by replacing paper-based systems with digital transfer of
documents between trading partners. [3]
4. What are the technology's advantages, benefits, and drawbacks?
ADVANTAGES:
 It safeguards the supply chain architecture; it enhances the brand
value of products; it decentralises the shared architecture; and it
builds confidence between two businesses that would otherwise be
incompatible. [1]
 It offers a secure IOT digital marketplace, which aids in the safe
distribution of cleverly produced data, the secure transmission of
sensitive financial data, and the automatic installation of service
requests. [3]
 It provides information regarding the country of origin of the items,
which reassures the customers and aids in preventing public
relations catastrophes. [5]
 It can cut down on hours and hours of market research.[5]

DISADVANTAGES:
 A block chain that is not accessible to the general public is favoured
because supply chain information is sensitive; yet, this block chain is
less secure because it has fewer nodes, making it simpler for
conspirators to alter a block.
 Since data placed into block chains cannot be updated once they are
live, it is possible for human mistake or other improper behaviour to
occur during the first data entry. As a result, the information
included in block chains may not be accurate.[6]

5. Does it generate any additional challenges in addition to those it is

intended to address for businesses?
The inefficiency of the systems and the lack of supply chain transparency
are two of the biggest problems that organisations are currently facing.
Businesses may conduct all types of transactions more securely and
transparently thanks to block chain technology. With the use of block
chain, it is possible to track a product's history, and each time a product
changes hands, the transaction is securely recorded, providing a
permanent history from the perspective of manufacture to the
perspective of sale. Even the parties working jointly could cut down on
transactional delays and human error. With fewer intermediaries and
hence fewer frauds, the organisation can now effortlessly synchronise
logistic data and automate payments via a shared block chain.
Transparency and efficiency are perfectly combined as a result. [4]

6. What, if any, ethical and security concerns exist, and how may they
be resolved?
Immutability, distributed verification, and automation, or the meeting of
expectations, are the three main ethical concerns with blockchain
technology. These concerns are mostly resolved by not exaggerating the
capabilities of the technology and the results it can produce, as well as
by taking proper precautions to ensure that it can withstand
cyberattacks.[5]

7. References
1. B. Subashini and D. Hemavathi, "Detecting the Traceability
Issues in Supply chain Industries Using Blockchain Technology,"
doi: 10.1109/ACCAI53970.2022.9752478 - 2022 International
Conference Advances in Computing, Communication and Applied
Informatics (ACCAI) in 2022

2. L. Zhuangzhuang, "Study on the Construction of Traceability

System of Cold-Chain Agri-Products Based on Block-Chain: A Case
Study of Ningxia Cabbage," 2020 International Conference on Big
Data , Artificial Intelligence and Software Engineering (ICBASE),
2020, pp. 270-274, doi: 10.1109/ICBASE51474.2020.00063

3. https://www.getsmarter.com/blog/market-trends/how-
blockchain-will-radically-improve-the-supply-chain/

4. https://balticassist.com/5-applications-for-blockchain-in-the-
business-world-6/

5. Blockchain-enabled supply chain management, found at

www.slideshare.net/ernstandyoung

6. https://www.jdsupra.com/legalnews/the-pros-and-cons-of-
blockchain-in-8158255/

7. Xu, P., Lee, J., Barth, J.R., and Richey (2021), "Blockchain as
supply chain technology: considering transparency and security,"
Vol. 51 No. 3, pp. 305-324 of International Journal of Physical
Distribution and Logistics Management,
https://doi.org/10.1108/IJPDLM-08-2019-0234