Role of Blockchain Technology in Supply Chain Management Efficiency in Pakistan

Abstract

Purpose: The aim of the study was to assess the role of blockchain technology in supply chain management efficiency in Pakistan.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: Blockchain technology plays a pivotal role in enhancing supply chain management efficiency by providing a transparent, secure, and immutable record of transactions. One of the primary benefits is the increased visibility it offers across the entire supply chain. Every transaction and movement of goods is recorded on the blockchain, which can be accessed by all authorized stakeholders, thereby reducing the chances of fraud and errors. This transparency helps in real-time tracking of products, which significantly improves inventory management and reduces delays caused by miscommunications or lack of information. Additionally, blockchain technology enhances security in the supply chain. Each transaction is encrypted and linked to the previous one, creating a chain that is nearly impossible to alter without detection. This feature ensures the integrity of the data and builds trust among participants, which is crucial for efficient supply chain operations. By reducing the need for intermediaries to verify transactions, blockchain also streamlines processes, cutting down on time and costs associated with third-party verifications. Smart contracts, which are self-executing contracts with the terms directly written into code, further contribute to efficiency. These contracts automatically enforce the terms of agreements when predefined conditions are met, reducing the need for manual interventions and expediting processes like payments and deliveries. This automation not only speeds up transactions but also minimizes disputes and the administrative burden on supply chain managers.

Implications to Theory, Practice and Policy: Technology acceptance model (TAM), resource-based view and transaction cost economics may be used to anchor future studies on assessing the role of blockchain technology in supply chain management efficiency in Pakistan. Making a practical contribution involves collaborating closely with industry partners to conduct empirical studies, longitudinal case studies, and field experiments across various supply chain sectors. Contributing to policy involves engaging with regulatory bodies, industry associations, and policymakers to advocate for supportive regulatory frameworks and standards that facilitate blockchain adoption in supply chain management.