Adoption of Block chain technology in ERP systems – SAP Blockchain Challenges and UseCases in Logistics and Supply chainmanagement (SCM)

Abstract

Global supply chains exhibit high complexity with numerous stakeholders and various third parties engaging in intricate transactions. This complexity poses challenges for real-time information updates, visibility, and transparency in global supply chain management. Traditional logistics systems struggle to effectively trace errors in areas such as inventory, shipping, and payments. The logistics industry stands to undergo a revolutionary transformation through the adoption of blockchain technology. While blockchain's groundbreaking capabilities have been evident in the financial sector, its potential impact on logistics is equally profound. Blockchain can serve as a potent tool, laying the groundwork for innovative and efficient approaches to handling data, business processes, and transactions, ultimately enhancing transparency. By integrating blockchain technology and Enterprise resource planning ERP systems, stakeholders in the logistics industry can embrace standardized and expedited processes. This integration facilitates real-time updates of
information, reduces errors, and saves time, ushering in a new era of streamlined logistics operations. This paper explains how combining ERP systems with Blockchain technology can really help make logistics and supply chain operations work better. It talks about how these two technologies can work together to make everything in logistics and supply chain management clearer, faster, and cheaper. The paper also looks at how this combo can benefit different parts of a company's supply chain, like planning and managing the movement of goods. It discusses how Blockchain can be used to track the origin of products, making it easier to see where things come from in the supply chain. The document gives examples and explains how these technologies are being used in different industries. It also talks about the challenges and what the future might look like with these technologies.