Blockchain-driven customer order management. Issue 6 (2nd December 2019)

• Record Type: Journal Article
• Authors: Martinez, Veronica; Zhao, Michael; Blujdea, Ciprian; Han, Xia; Neely, Andy; Albores, Pavel
• Is Part Of: International journal of operations & production management. Volume 39:Issue 6/8(2019)
• Page Start: 993
• Page End: 1022
• Publication Date: 2019-12-02
• Subjects: Supply chain -- Digital technology -- Resource-based view (RBV) -- Blockchain -- Information processing theory (IPT); Production management -- Periodicals; Business logistics -- Periodicals; 658.5
• DOI: 10.1108/IJOPM-01-2019-0100
• Languages: English
• ISSNs: 0144-3577

Abstract

Abstract : Purpose: The purpose of this paper is to investigate the effects of Blockchain on the customer order management process and operations. There is limited understanding of the use and benefits of Blockchain on supply chains, and less so at processes level. To date, there is no research on the effects of Blockchain in the customer order management process. Design/methodology/approach: A twofold method is followed. First, a Blockchain is programmed and implemented in a large international firm. Second, a series of simulations are built based on three scenarios: current with no-Blockchain, 1-year and 5-year Blockchain use. Findings: Blockchain improves the efficiency of the process: it reduces the number of operations, reduces the average time of orders in the system, reduces workload, shows traceability of orders and improves visibility to various supply chain participants. Research limitations/implications: The research is based on a single in-depth case that has the scope to be tested in other contexts in future. Practical implications: This is the first study that demonstrates with real data from an industrial firm the effects of Blockchain on the efficiency gains, reduction on the number of operations and human-processing savings. A detailed description of the Blockchain implementation is provided. Furthermore, this research shows a list of the resources and capabilities needed for building and maintaining a Blockchain in the context of supply chains. Originality/value: This is the first study that demonstrates with real data from an industrial firm the effects of Blockchain on the efficiency gains, the reduction in the number of operations and human-processing savings. A detailed description of the Blockchain implementation is provided. This paper contributes to the resource-based view of the firm, by demonstrating two new competitive valuable capabilities and a new dynamic capability that organisations develop when implementing and using Blockchain in a supply–demand process. It also contributes to the information processing theory by highlighting the analytics capabilities required to sustain Blockchain-related operations.