APEX INSTITUTE OF TECHNOLOGY

DEPARTMENT OF COMPUTER SCIENCE & ENGINEERING

Blockchain: KYC & Supply Chain 21CSH-494

Chapter – 2
Evolution of Supply Chain Practices DISCOVER . LEARN . EMPOWER

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Blockchain: KYC & Supply Chain : Course Objectives

COURSE OBJECTIVES
The Course aims to:
1. Explore the flow of materials and information in supply chains and the role of logistics
and transportation.
2. Understand performance measurement in supply chains through KPIs and metrics.
3. Gain foundational knowledge of blockchain concepts, including decentralization, smart
contracts, and consensus mechanisms.
4. Evaluate the benefits and challenges of blockchain adoption in SCM, such as scalability
and regulatory concerns.
5. Examine blockchain applications in invoice financing, reverse securitization, and payment
settlements.

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COURSE OUTCOMES
On completion of this course, the students shall be able to:-

CO1 Understand the fundamental concepts of Supply Chain Management (SCM)

Analyze the application of Blockchain technology in Supply Chain Management

Assess the role of Blockchain in Supply Chain Finance

Apply security principles in Blockchain-enabled supply chains

Investigate the integration of Blockchain with Supply Chain Finance and Logistics
CO5

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Unit-1 Syllabus

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 SUGGESTIVE READINGS

TEXT BOOKS:

• Kshetri, Nir. Blockchain and Supply Chain Management. 2nd Edition.

• Hofmann, Erik, Urs Magnus Strewe, and Nicola Bosia. Supply Chain
Finance and Blockchain Technology: The Case of Reverse Securitisation.
1st Edition. Springer, 2018. ISBN: 978-3319780145.

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Outline
•Key Trends Shaping the Future of SCM
•Automation
•Data Analytics
•Integration

•Challenges in the Supply Chain Industry

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 Key Trends Shaping the Future of SCM
1. Automation

Automation in SCM involves using machines, robots, and AI-powered systems to perform
tasks traditionally done by humans, improving speed and accuracy.

• Impact on SCM:
• Warehouse Automation: Robots and automated guided vehicles (AGVs) handle
sorting, packing, and storage.
• Transportation Automation: Self-driving trucks and drones for faster and more
cost-effective deliveries.
• AI and Machine Learning: Algorithms optimize routes, forecasts, and inventory
management.

• Example:
• Amazon: Uses robots in warehouses for picking and packing, reducing human error
and speeding up operations.
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 Key Trends Shaping the Future of SCM
2. Data Analytics

Data analytics in SCM uses big data, AI, and machine learning to gather insights, predict
trends, and optimize processes.

• Impact on SCM:
• Demand Forecasting: Predict future demand patterns using historical data and AI
models.
• Optimization: Optimizes routes, inventories, and supplier networks to minimize
costs.
• Risk Management: Predicts disruptions and helps businesses proactively mitigate
risks.

• Example:
• Walmart: Uses data analytics to manage inventory and ensure products are
available at the right time.
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 Key Trends Shaping the Future of SCM
3. Integration

SCM integration connects all functions, systems, and partners (suppliers, manufacturers,
distributors, customers) to enable seamless communication and real-time collaboration.

• Impact on SCM:
• Cloud Platforms: Centralized systems allow real-time sharing of data between all
stakeholders.
• IoT and Blockchain: Enhance transparency and traceability, improving supply chain
visibility.
• Collaboration: Partners can respond quickly to changes, disruptions, or customer
demands.

• Example:
• Maersk & IBM Blockchain: Integrated blockchain platform to track shipments and
improve transparency in global trade.

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 Challenges in the Supply Chain Industry
1. Inefficiencies

• Challenges:
• Manual Processes: Heavy reliance on manual labor for tasks like inventory
management, order processing, and logistics.
• Bottlenecks: Poor coordination between different parts of the supply chain leading
to delays and inefficiencies.
• Underutilization of Resources: Inefficient use of transportation assets and
warehouse space.

• Solution:
• Automation and optimization tools to improve resource allocation and workflow
efficiency.

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 Challenges in the Supply Chain Industry
2. Fraud

• Challenges:
• Counterfeit Goods: The introduction of fake goods in the supply chain affects brand
reputation and consumer trust.
• Theft and Tampering: Unauthorized access to goods or data can lead to theft,
product tampering, and compliance issues.
• Payment Fraud: False billing or improper financial transactions that disrupt cash
flow and business relationships.

• Solution:
• Blockchain: Ensures product traceability, prevents fraud, and guarantees
authenticity.

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 Challenges in the Supply Chain Industry
3. Lack of Visibility

• Challenges:
• Limited Tracking: Difficulty in tracking goods and materials across the supply chain,
especially with multiple parties involved.
• Data Silos: Fragmented data systems hinder collaboration and decision-making.
• Ineffective Communication: Poor coordination between stakeholders leads to
delays, lost opportunities, and customer dissatisfaction.

• Solution:
• IoT and Real-Time Tracking: Provide continuous updates on inventory and
shipments.
• Cloud Integration: Centralized data platforms provide a unified view of the entire
supply chain.

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 Thank
Address:
AIT-CSE,
Chandigarh University

Contact Numbers:
+91-9418290915

Email Address:
[email protected]
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