[vc_row css=”.vc_custom_1629803910077{margin-bottom: 24px !important;}”][vc_column][vc_column_text]The world’s limited natural resources, global warming and energy resource depletion require companies to adopt a sustainable approach by utilizing technology in their supply chain processes. Sustainability, which is at the top of the global business agenda, has reshaped the business world with developments such as the deepening of the climate crisis and supply chain problems that have turned into crises due to the Covid pandemic. On the other hand, blockchain is one of the most frequently mentioned topics on the business agenda in recent years. Blockchain, which was more famous in the finance sector in previous years, has become more frequently mentioned in all sectors. With the development of technology, we examined the role of blockchain, which is predicted to further diversify its application areas, in the sustainable supply chain.[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1629803910077{margin-bottom: 24px !important;}”][vc_column]
A sustainable supply chain requires consideration of sustainability at every stage of the supply chain, from the production of raw materials to the end consumers. In this process, all parties involved in the supply chain adopt sustainable practices that aim to protect natural resources and social rights, reduce emissions, protect labor rights and human rights.
Blockchain technology is a declaration that is publicly available and cannot be changed retroactively, and information can be added by the parties to the commercial cooperation. Blockchain technology is a technology that enables transparency and traceability in the supply chain by allowing all transactions in the supply chain to be securely recorded and monitored. This can create a more trusted collaboration between all stakeholders in the supply chain. This element of trust and prestige in B2B relationships also serves positively for corporate reputation.[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1629803910077{margin-bottom: 24px !important;}”][vc_column]
The blockchain’s data-driven system creates use cases in sustainable supply chains with notary, clearing and settlement, smart contracts, immutable data storage, and real-time data provision. The distributed acquisition of data differentiates the communication traffic in the traditional supply chain and creates a modern cure. This creates savings in every sense.
In today’s competitive environment, blockchain technology provides a transparent and reliable data sharing with many advantages such as its distributed structure, database architecture, automated algorithm structure, and accessibility by supply chain actors. Verifying the data, storing it for data storage provides advantages in building trust in the transactions shared with stakeholders. In this way, new collaborations in both national and global markets and the opportunity to open up to new markets arise. From a corporate communication perspective, as a result of the trust environment created by a trade approach based on reliable data, blockchain technology indirectly has a positive impact on reputation.[/vc_column_text][/vc_column][/vc_row][vc_row css=”.vc_custom_1629803910077{margin-bottom: 24px !important;}”][vc_column]
Direct Integration: Blockchain technology is defined as a flexible technology that can be integrated with different systems, and sustainable supply chain managers can integrate blockchain data directly into their existing systems using the APIs offered by blockchain technology. This provides an integration advantage.
Sensors and Smart Devices: Various sensors and smart devices in the supply chain can be used to collect and process blockchain data. These devices can measure the location of products, temperature, humidity and other important parameters and record this data on the blockchain. This can lead to savings.
Manual Data Entry: Blockchain technology can also be used for manual data entry. For example, products can be manually scanned at a certain point and the blockchain data related to the product can be recorded. While this method offers lower efficiency than automated methods, it can be useful in some cases.
Smart Contracts: Smart contracts, when used in conjunction with blockchain technology, allow for the automated recording and processing of data in the supply chain. When certain conditions are met, smart contracts automatically update blockchain data for transportation, storage, and other transactions. It is often used in logistics, such as customs, warehousing, etc.
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Blockchain technology could encourage companies to do more to track their sustainability performance in the coming years. Data related to the supply chain process of businesses can be stored and shared with blockchain technology and measurement of sustainability performance can be encouraged using this data. In this way, companies can better analyze the areas in which they need to work to achieve their sustainability goals and can take actions focused on sustainability goals. In accordance with sustainability reporting standards, companies have the opportunity to stand out from the competition by sharing their performance in the supply chain and how close they are to their sustainability goals. Sustainable supply chain managers can increase the transparency and traceability of the supply chain by choosing the appropriate methods for the transmission of blockchain data. Information such as production locations, sources of raw materials, emissions during production stages, and working conditions can be shared more openly, which can become a constructive competitive factor. This can help consumers make more informed choices and companies adopt more sustainable practices. This could open the door to more effective achievement of environmental, social and economic sustainability goals in the supply chain.
In the context of all these developments, it can be said that blockchain technology can greatly contribute to a more sustainable way of living in the world, as it can provide a faster and more efficient process in sustainable supply chain management. Of course, the advantages and application areas will develop at the same rate according to the development of this technology and the opportunities it will offer in the future.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text] Sources:
Altay Topcu, B. & Sumerli Sarıgül, S. (2020). Blockchain Technology in the World and Turkey: A General Evaluation on Financial Sector, Foreign Trade and Tax Regulations. European Journal of Science and Technology, Ejosat Special Issue 2020 (ARACONF), 27-39. DOI: 10.31590/ejosat.araconf5
Irak, G. & Topcu, Y. E. (2020). THE IMPACT OF THE APPLICATION OF BLOCK CHAIN TECHNOLOGY ON COSTS IN SUPPLY CHAIN. International Journal of Management Economics and Business, 16 (1), 171-185. DOI: 10.17130/ijmeb.700862
Werbach K. (2021) Blockchain and New Trust Architecture, 1st ed., Istanbul, Koç University Press.
Williams S. P. (2020) Blockchain Blockchain: Everything in the Future, 1st Edition, Istanbul: Kaknüs Publications. [/vc_column_text][/vc_column][/vc_row]