Blockchain Technology in Supply Chain Transparency: Opportunities and Challenges

Background: Global supply chains face increasing challenges in maintaining transparency and traceability, with consumers and regulators demanding greater visibility into product origins, manufacturing processes, and ethical sourcing practices. Traditional supply chain management systems often lack the capability to provide end-to-end visibility, leading to issues such as counterfeiting, fraud, and inefficient recall processes.

Objective: This study aims to evaluate the opportunities and challenges of implementing blockchain technology for enhancing supply chain transparency, examining its potential to revolutionize traceability mechanisms across various industries.

Methods: A mixed-methods approach was employed, combining quantitative analysis of blockchain implementation cases across 150 companies and qualitative interviews with 25 supply chain executives. Data was collected through structured surveys, semi-structured interviews, and analysis of blockchain-based supply chain platforms between January 2023 and December 2024.

Results: Results indicate that 78% of companies implementing blockchain technology reported improved traceability, with 65% experiencing reduced fraud incidents. However, 82% of respondents cited technical complexity and 74% mentioned high implementation costs as significant barriers. The average cost reduction in recall processes was 34%, while transparency scores improved by an average of 56?ross participating organizations.

Conclusion & Implications: Blockchain technology presents substantial opportunities for enhancing supply chain transparency but requires strategic planning to overcome implementation challenges. Organizations should focus on pilot programs and collaborative networks to maximize benefits while minimizing risks.