Blockchain For Logistics and Supply Chain Management

Submitted in partial fulfillment of the requirements of the

degree

M. Tech. in COMPUTER ENGINEERING

By

Sweta Rishiraj Sharma-22CO1008

Supervisor

Prof. Dr. Dhananjay Dakhane

Department of Computer Engineering Dr. D. Y. Patil Group’s

Ramrao Adik Institute of Technology

Dr. D. Y. Patil Vidyanagar, Sector 7, Nerul, Navi Mumbai 400706. University of

Mumbai(AY 2022-23)

CERTIFICATE

This is to certify that the Mini Project entitled “Blockchain For Logistics and Supply

Chain Management” is a bonafide work of Sweta Sharma (22CO1008) submitted to the

University of Mumbai in partial fulfillment of the requirement for the award of the degree of

“M. Tech” in “Computer Engineering” .

(Prof. Dr. Sangita Chaudhari)

Supervisor

(Prof. Dr. Leena Ragha) (Prof. M. D. Patil)

Head of Department Principal

Mini Project Approval

This Mini Project entitled “Blockchain For Logistics and Supply Chain” by Sweta Sharma
(22CO1008) is approved for the degree of M. Tech in Computer Engineering.
 Examiners

1………………………………………
(Internal Examiner Name & Sign)

2…………………………………………
(External Examiner name & Sign)

Date:

Place:

Contents

Abstract i

Acknowledgments ii

List of Figures iii

1 Introduction 7
Introduction
Motivation
Problem Statement & Objectives
Organization of the Report

2 Literature Survey 8
Survey of Existing System

3 Proposed System 9
Introduction
Implementation And Result
Conclusion
Future Work.
4 References 15
 Abstract

Blockchains are attracting the attention of stakeholders in many industrial domains,

including the logistics and supply chain industries. Blockchain technology can effectively
contribute in recording every single asset throughout its flow on the supply chain, contributing
in tracking orders, receipts, and payments, while tracking digital assets such as warranties and
licenses in a unified and transparent way. The paper provides, through its methodology, a
detailed analysis of the blockchain fit in the supply chain industry. It defines the specific
elements of blockchain that affect supply chain such as scalability, performance, consensus
mechanism, privacy considerations, location proof and cost, and details on the impact that
blockchains will have in disrupting the supply chain industry.

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 Acknowledgement

We would like to thank our guide and mentor Dr. Dhananjay Dakhane for the Mtech
Mini project “Blockchain For Logistics and Supply Chain Management” who mentored us
throughout and cleared the concepts and helped us understand all the topics.

We would also like to thank the Head of the Department Dr.Amar Sinh Vidhate for
giving us an opportunity to understand and implement this project.

We would like to thank the principal Prof M. D. Patil for providing us with all the
facilities and required equipment for this project.

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 List Of Figures

Fig 3.1 Supply Chain Roles (Actors) interacting with Blockchain Distributed Ledger
Technology.

Fig 3.2 Notification For Confirm Transaction.

Fig 3.3 Notification On MetaMask.

Fig 3.4 Data Of Transactions.

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 1.Introduction

● Introduction :
Blockchains are regarded as public ledgers containing transactional data within
their decentralized data structures, which form a series of tightly connected blocks.
Asymmetric cryptography and distributed consensus algorithms are being deployed for
achieving ledger consistency, data integrity, auditability, non-repudiation, and
authentication as part of the basic security primitives.

Practically every product that reaches an end-user represents the cumulative effort of
many organizations and stakeholders. These are referred to collectively as the supply chain.

Organizations within a supply chain are linked through physical and information flows:

 Physical flows involve the transformation, movement, and storage of goods and

materials
 Information flows involve the coordination between partners to control the day-to-day
flow of goods and materials up and down the supply chain; it also involves long-term
planning

● Motivation :
Blockchain can greatly improve supply chains by enabling faster and more cost-efficient
delivery of products, enhancing products' traceability, improving coordination between
partners, and aiding access to financing. Recent technological advancements and rapid
manufacturing growth are having a considerable impact on the global supply chain. For

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example, artificial intelligence is taking over quality control, Internet of Things (IoT) devices
and drones are monitoring manufacturing and maintenance, and more than 1.9 million robots
are already deployed in manufacturing and warehousing globally.
Historically, innovation has often disrupted supply chains in various, significant ways. For
instance, the introduction of the PC in the 1980s led to dramatic shifts in supply chain
management. Organizations increasingly adopted PCs for word processing, daily operations,
and accounting, while map-based interfaces and flexible spreadsheets allowed for more
efficient logistics and supply chain planning.

Today, companies need to be agile, flexible, and responsive to survive. Those that drive
continuous innovation throughout their businesses and supply chains – and differentiate
themselves in a highly competitive market by remaining dynamic and relevant – are the ones
that succeed.

As the pace of change accelerates, improving the efficiency and transparency of your
organization’s supply chain becomes critical. Fortunately, blockchain technology can help
simplify the process.

● Problem Statement & Objectives :

In reality, the technological advances and digitalisation facilities are now an
internal part of our daily activities and processes, becoming a part of our society
gradually, and constantly influencing the economy, industry, education, and science.
Considering the fast growing international competition fostered by the complexity of the
manufacturing industry, increasing market volatility, and more efficient product life
cycles, Industry 4.0 (namely the Fourth Industrial Revolution) is transforming and
digitizing the future of many business processes. There are two dimensions to supply
chain transparency, says Alexis Bateman, director of MIT Sustainable Supply Chains at
the MIT Center for Transportation and Logistics:

Visibility: Accurately identifying and collecting data from all links in the supply
chain

Disclosure: Communicating this information, internally and externally, at the

appropriate level of detail

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To determine the right level of supply chain transparency, organizations should consider their
industries, the relevant regulations, their code of ethics, suppliers, customers, and historical
supply chain issues, and their acceptable level of risk.

Inefficiencies in systems – for example, where vendors and suppliers try in vain to connect the
dots on who needs what, when, and how – are another common challenge. A few more
examples of inefficiencies are bad upstream inventory management, poor allocation of products
to stores, fluctuating demand, and even slow shelf rotation. In addition, product recalls are
expensive and inconvenient, with companies needing to trace products and suppliers back to
their origin to address issues.

● Organization Of The Report :

The introduction is given in Chapter 1. It describes the fundamental terms used
in this project. It motivates me to study and understand the different techniques used in
this work. This chapter also presents the outline of the objectives of the report. Chapter 2
describes the review of the relevant various techniques in the literature survey. It
describes the pros and cons of each technique. Chapter 3 presents the Theory and
proposed work. It describes the major approaches used in this work. The summary of the
report is also presented in this chapter. References used for the project are in Chapter 4.

2.Literature Survey

● Survey Of Existing System :

Blockchain technology has been successfully used in several industries, such as energy
and finance. For the supply chain, solutions have been proposed in a theoretical manner
without significant results in real-world conditions. In particular, recent literature studies
have various aspects of the specific domain.

A. The authors identify characteristic use cases described for blockchain in the field
of logistics and supply chain management and analyze them regarding their mindful
technology use based on five mindful technology adoption principles: Engagement with
the technology; technological novelty seeking.

B. The authors use the methodology ‘attributes of innovation framework’ to

identify the potential blockchain applications and present a framework explicating four
transformation phases to subsequently categorize the identified areas of application
according to their effects on organizational structures and processes.

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 3.Proposed System

● Introduction :

Fig 3.1 Supply Chain Roles (Actors) interacting with Blockchain Distributed Ledger
Technology.

Figure 3.1 illustrates, conceptually, how the different actors of a supply chain can
cooperate and interact under a blockchain network. Each participant submits transactions on the
blockchain network in a specific way, depending on the completed activity. In the raw materials
step, the suppliers that pre-process the natural resources are submitting transactions on the
ledger concerning that initial process. These transactions include tags such as raw material
name, quantity, quality, origin geo-location, and others. The moment the raw materials are
starting their journey to the manufacturer, the appropriate transactions are submitted. In this
manner, every network party can verify important details about the specific raw material they
have received or that their product is made from. Similarly, on the manufacturing stage, the
manufacturer has a similar interaction with the blockchain and the Logistics next chain
participant.
● Implementation And Result :

pragma solidity ^0.6.0;

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contract SupplyChain { event

Added(uint256 index);

struct State{
string description;
address person;
}

struct Product{
address creator; string productName;
uint256 productId; string date;
uint256 totalStates; mapping (uint256
=> State) positions;
}

mapping(uint => Product) allProducts;

uint256 items=0;

function concat(string memory _a, string memory _b) public returns (string
memory){ bytes memory bytes_a = bytes(_a); bytes memory bytes_b =
bytes(_b); string memory length_ab = new string(bytes_a.length +
bytes_b.length); bytes memory bytes_c = bytes(length_ab); uint k = 0;
for (uint i = 0; i < bytes_a.length; i++) bytes_c[k++] = bytes_a[i]; for
(uint i = 0; i < bytes_b.length; i++) bytes_c[k++] = bytes_b[i]; return
string(bytes_c);
}

function newItem(string memory _text, string memory _date) public returns (bool) {
Product memory newItem = Product({creator: msg.sender, totalStates:
0,productName: _text, productId: items, date: _date});
allProducts[items]=newItem; items = items+1;
emit Added(items-1); return true;

function addState(uint _productId, string memory info) public returns (string

memory) {

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 require(_productId<=items);

State memory newState = State({person: msg.sender, description: info});

allProducts[_productId].positions[ allProducts[_productId].totalStates ]=newState;

allProducts[_productId].totalStates = allProducts[_productId].totalStates
+1; return info; } function searchProduct(uint _productId) public returns
(string memory) {

require(_productId<=items); string memory output="Product

Name: "; output=concat(output,
allProducts[_productId].productName);
output=concat(output, "<br>Manufacture Date: ");
output=concat(output, allProducts[_productId].date);

for (uint256 j=0; j<allProducts[_productId].totalStates; j++){

output=concat(output, allProducts[_productId].positions[j].description);
} return
output;

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Fig 3.2 Notification For Confirm Transaction.

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Fig 3.3 Notification On MetaMask.

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 Fig 3.4 Data Of Transactions.

● Conclusion :

. As the research progresses in inter-domain and inter-chain blockchain

implementations, the path to public blockchains will be paved with more concrete ideas
and the implementation will be facilitated with more concreted design principles and
adoption maturity from the respective stakeholders of the supply chain industry. The
specific paper presented, among others, an analysis on the blockchain adoption for a
large-scale deployment on the supply chain management industry.

● Future Scope :

It majorly lies in the field of Cybersecurity. Although the Blockchain ledger is

open and distributed, the data is secure and verified. The encryption is done through
cryptography to eliminate vulnerabilities such as unauthorized data tampering.

4.References

[1] Verhoeven, P.; Sinn, F.; Herden, T.T. Examples from Blockchain Implementations in

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Logistics and Supply Chain Management: Exploring the Mindful Use of a New
Technology. Logistics 2020, 2, 20.
[2]Dobrovnik, M.; Herold, D.M.; Fürst, E.; Kummer, S. Blockchain for and in Logistics:
What to Adopt and Where to Start. Logistics 2018, 2, 18.

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