As we continue to navigate the 21st century, the interconnectedness of technological advancements and sustainable growth is becoming more evident. Among a plethora of technologies reshaping multiple sectors, blockchain emerges as a game-changer for supply chain management. Concurrently, the sustainable development goals (SDGs) established by the United Nations in 2015 offer a roadmap for sustainability worldwide. This chapter delves into the connection between these two significant constructs: blockchain technology and the SDGs, in relation to SCM.
TopBackground And Introduction
As we continue to navigate the 21st century, the interconnectedness of technological advancements and sustainable growth is becoming more evident (Smits, 2002). Among a plethora of technologies reshaping multiple sectors, blockchain emerges as a game-changer for supply chain management (SCM; Kopyto, Lechler, von der Gracht, & Hartmann, 2020). Concurrently, the Sustainable Development Goals (SDGs) established by the United Nations in 2015 offer a roadmap for sustainability worldwide (Tsalis, Malamateniou, Koulouriotis, & Nikolaou, 2020). This chapter delves into the connection between these two significant constructs: blockchain technology and the SDGs, in relation to SCM.
In today's world, supply chains have become intricate and globally dispersed, posing challenges for businesses to oversee and control each stage effectively. This obscurity can lead to inefficiencies, unethical actions, and environmental harm. For example, the creation of a simple T-shirt involves multiple continents, several stakeholders, and can have a considerable impact on the environment. Thus, fostering sustainability in such complex supply chains calls for groundbreaking solutions - a potential that blockchain technology aspires to realize.
Blockchain, initially invented as a public ledger for Bitcoin transactions, has far-reaching implications (Block, 2023). It's a decentralized, unchangeable, and transparent system capable of securely and efficiently tracking transactions (Hemdan, El-Shafai, & Sayed, 2023). Within the framework of supply chains, blockchain can enhance visibility, confirm product genuineness, and promote trust among participants (Agrawal, Angelis, Khilji, Kalaiarasan, & Wiktorsson, 2023). By recording and tracing every transaction, it enables consumers, businesses, and regulators to authenticate product origins and supply chain reliability. Consequently, blockchain can help tackle numerous sustainability-related issues prevalent in contemporary supply chains.
Meanwhile, the SDGs offer a worldwide schema for sustainability, including 17 goals that cover areas from eradicating poverty and eliminating hunger to encouraging responsible consumption and production. Supply chains play a crucial role in attaining these goals, given their importance to global trade, job generation, and resource distribution (Dou, Xu, Zhu, & Keenan, 2023). For instance, SDG 12, advocating for responsible consumption and production, directly involves supply chain functions. Other SDGs like SDG 8 (decent work and economic growth) and SDG 9 (industry, innovation, and infrastructure) also entail significant supply chain implications.
Considering blockchain technology's capability to alleviate numerous challenges related to achieving the SDGs in SCM, a study of this link is both opportune and pertinent. This chapter is designed to offer a comprehensive view of this intersection, highlighting how blockchain can support sustainable SCM and how supply chains can assist in accomplishing the SDGs. It will share real-world instances of this symbiosis, discuss the associated challenges and possibilities, and deliver insights for supply chain experts, sustainability proponents, and policymakers.
This chapter seeks to contribute to both the scholarly dialogue on sustainability and blockchain and provide practical guidance for SCM practitioners. The primary aim is to enhance comprehension of how cutting-edge technologies can be employed to develop more sustainable and equitable supply chains, hence contributing to the global mission of achieving the SDGs. The upcoming section discusses the relevance of SDGs in the context of SCM.
The SDGs are a collection of 17 interconnected global objectives established by the United Nations General Assembly, aimed at fostering a more sustainable future. These goals cover various areas including responsible consumption and production, decent work, and economic growth, all of which have implications for SCM. This section explores the specific relevance of SDGs to supply chain operations and sustainability.