Department of Industrial Engineering
Faculty of Engineering
King Abdulaziz University
Supply Chain Management – IE 457
Blockchain in
Supply Chain
Instructor: Dr. Rimal Abutaha
Team 4 Members:
Layan Shafi 2105494
Danah Alotaibi 2105607
Ethar Aljuhani 2107472
Manar Alhumaylis 2113607
Section: AAG
What is Blockchain How will blockchain
Example of Blockchain in transform supply chain
Supply chain
Real-World Blockchain
How does Blockchain work
Applications in Industry
Table of in supply chin
Benefits of blockchain in
Content supply chain
Conclusion
Challenges of Implementing
blockchain in supply chain
What is Blockchain?
1
What is Blockchain?
Blockchain is a secure, decentralized digital ledger that
records transactions across multiple computers. Each block
of data is linked to the previous one, forming a continuous,
tamper-resistant chain. Once information is added, it
cannot be changed easily, ensuring transparency and data
integrity.
Blockchain Initially used for Bitcoins
Layan Shafi 2
Example of Blockchain in Supply chain
Supplier Manufacturer Retailer
Layan Shafi 3
How does blockchain work in
supply chains?
4
How does blockchain work in supply chains?
1. Process for applying blockchain [2]
1. Request a Transaction
When an event happens in the supply chain (e.g., a product is shipped or
inventory is updated), a transaction request is generated.
2. Broadcast to Network (Nodes)
The transaction request is sent across a decentralized network that includes all
relevant stakeholders (nodes)
Each participant in the network receives the transaction, ensuring that everyone
has access to the same information.
Ethar Aljuhani
5
How does blockchain work in supply chains?
1. Process for applying blockchain [2]
3. Validation
Each node in the network validates the transaction to ensure it’s legitimate and
accurate.
Validation helps ensure that all data in the supply chain is trustworthy, reducing
errors and fraudulent activities.
4. Creation of New Block
Once the transaction is validated, it’s combined with other verified transactions into
a new block.
This bundling process organizes data into manageable segments and prepares it for
permanent recording.
Ethar Aljuhani
6
How does blockchain work in supply chains?
1. Process for applying blockchain [2]
5. Adding to Blockchain and Completion
The new block is added to the blockchain, creating a tamper-proof, immutable
record.
All participants can access real time updates to track the product's journey
through the supply chain.
Ethar Aljuhani
7
How does blockchain work in supply chains?
2.How do companies build their blockchain [3]
Ethar Aljuhani
8
Benefits of Blockchain in
Supply Chain
9
What are the benefits of using blockchain in supply chains? [4]
Enhanced Sustainability Tracking: Blockchain tracks environmental
data throughout the supply chain, ensuring eco-friendly practices.
Improved Accountability: Every transaction is permanently recorded,
holding each party accountable for their actions.
Reduced Fraud and Counterfeiting: Blockchain’s secure ledger makes
tampering nearly impossible, protecting against counterfeits.
Manar Alhumaylis 10
What are the benefits of using blockchain in supply chains? [4]
Real-time Data Sharing: Blockchain updates every transaction instantly, making data
available to all stakeholders simultaneously.
Enhanced Decision Making: Access to accurate, up-to-date data helps businesses make
quicker, more informed choices.
Better Customer Satisfaction: Transparency and reliability in information lead to
improved trust and satisfaction among customers.
Manar Alhumaylis 11
Challenges and Considerations in
Implementing Blockchain in the
Supply Chain
12
What are the key challenges in implementing blockchain in
the supply chain? [5]
Key challenges:
1. Technical Complexity: Blockchain requires advanced technical skills, making it
challenging to implement and maintain.
2. Integration with Existing Systems: Adapting blockchain to work with legacy systems
can be complex and costly.
3. Cost Considerations: Initial setup and maintenance costs can be high, especially for
small and medium enterprises.
4. Data Privacy and Confidentiality: Sharing data on a transparent ledger raises concerns
about data security and confidentiality.
Manar Alhumaylis 13
How Will Blockchain Transform
Supply Chains?
14
How Will Blockchain Transform Supply Chains?[6]
1. Greater Adoption
As businesses recognize blockchain’s advantages, its adoption across the full
supply chain is increasing.
Blockchain adoption enables real-time data sharing, reducing delays and
boosting network efficiency.
This greater integration leads to faster decision-making, reduced risks, and
shared trust across stakeholders.
Danah Alotaibi
15
How Will Blockchain Transform Supply Chains? [6]
2. Increased Integration with IoT
Combining blockchain with IoT devices (like sensors and trackers) creates an
intelligent system where products are monitored.
IoT captures data, and blockchain secures it, creating reliable transparency with
an unchangeable, trusted record for all.
This system tracks the movement of goods and monitors quality, improving
efficiency, minimizing waste, and ensuring adherence to standards.
Danah Alotaibi 16
How Will Blockchain Transform Supply Chains? [6]
3. Improve Sustainability
Companies must disclose the social and environmental impacts of their actions.
This directive requires companies to follow a standardized approach to
Environmental, Social, and Governances (ESG) reporting, ensuring
transparency and preventing misleading sustainability claims (greenwashing).
Blockchain technology can improve supply chain sustainability by verifying fair
trade and ethical practices.
Danah Alotaibi 17
Saudi Arabia’s Supply Chain Revolution with Blockchain
Danah Alotaibi 18
Real-World Blockchain Applications in Industry [7] , [8]
Saudi Aramco:
Utilizes blockchain to track the movement of energy resources.
Implements smart contracts to manage vendor agreements.
Reduces administrative overhead and increases transaction security.
SABIC:
Employs blockchain to trace the origin and journey of raw materials.
Enhances supply chain traceability, particularly in the chemicals and plastics
sectors.
Danah Alotaibi 19
Conclusion
20
Thank you
If you have any questions , Feel free to ask !
21
References
[1] “Blockchain,” Blackduck.com. [Online]. Available: https://www.blackduck.com/glossary/what-is-
blockchain.html.
[2] “Blockchain payments: a step by step guide.” Jul 17, 2023. [Online]. Available:
https://www.bvnk.com/blog/blockchain-payments
[3] “How Walmart brought unprecedented transparency to the food supply chain with Hyperledger Fabric.”
[Online]. Available: https://www.lfdecentralizedtrust.org/case-studies/walmart-case-
study#:~:text=This%20was%20not%20bad%20by,suppliers%20to%20design%20the%20appli cation
[4] D. Tymoshchenko, “Blockchain for Supply Chain Management: [benefits & use cases],” Blockchain for Supply
Chain Management: [Benefits & Use Cases], https://acropolium.com/blog/why-and-how-to-employ-blockchain-in-
supply-chain-management-tips-and-success-stories/
[5] “Blockchain Supply Chain Management: Key benefits & examples,” AIMS Education,
https://aims.education/blockchain-supply-chain-management/
[6] J. Günthner, “The role of blockchain in supply chain management (SCM) | PALTRON,” www.paltron.com,
Mar. 16, 2023. https://www.paltron.com/insights-en/the-role-of-blockchain-in-supply-chain-management-scm
[7]Aramco, “Digital technologies,” www.aramco.com. https://www.aramco.com/en/what-we-do/energy-
innovation/digitalization/digital-technologies
[8]“SABIC launches pilot blockchain project to advance emissions tracking & reductions across value chains,”
Sabic.com, 2023. https://www.sabic.com/en/news/41374-sabic-launches-pilot-blockchain-project-to-advance- 22
Summary Blockchain in Supply Chain
What is
Benefits of
Blockchain?
Blockchain in
Blockchain is a secure,
decentralized ledger that How does Supply Chain
records transactions across blockchain
multiple computers in
linked, tamper-resistant work in supply Enhanced Sustainability
Tracking.
blocks. Once added, chains? Improved Accountability.
information cannot be Reduced Fraud and
Process for applying blockchain
easily altered, ensuring Counterfeiting.
1. Request a Transaction
transparency and integrity. Real-time Data Sharing
2. Broadcast to Network
Originally developed to Enhanced Decision Making.
(Nodes)
support Bitcoin Better Customer
3. Validation
transactions. Satisfaction.
4. Creation of New Block
5. Adding to Blockchain and
Completion
How do companies build their
blockchain
1. By their own
2. A contract with another
company
challenges in How Will Examples in
implementing Blockchain Saudi Arabia:
blockchain in the Transform
supply chain? Supply Chains? Saudi Aramco: Uses
blockchain to track energy
1. Adoption: Blockchain resources and secure
Technical complexity
boosts efficiency and trust transactions with smart
Integration with existing
in supply chains. contracts.
systems
Cost considerations 2. IoT Integration: It
enhances product SABIC: Traces raw
Data privacy and
monitoring and materials to enhance
confidentiality
transparency.
3. Sustainability: Blockchain
verifies fair trade and
supply chain transparency
and compliance. 23
supports ESG compliance.
