Blockchain–Driven Customer Order Management

Veronica Martinez, Michael Zhao, Ciprian Blujdea, Xia Han, Andy Neely, Pavel Albores

Research output: Contribution to journalArticle

Abstract

Purpose: The purpose of this paper is to investigate the effects of Blockchain on the customer order management process and operations. There is limited understanding of the use and benefits of Blockchain on supply chains, and less so at processes level. To date, there is no research on the effects of Blockchain in the customer order management process. Design/methodology/approach: A twofold method is followed. First, a Blockchain is programmed and implemented in a large international firm. Second, a series of simulations are built based on three scenarios: current with no-Blockchain, 1-year and 5-year Blockchain use. Findings: Blockchain improves the efficiency of the process: it reduces the number of operations, reduces the average time of orders in the system, reduces workload, shows traceability of orders and improves visibility to various supply chain participants. Research limitations/implications: The research is based on a single in-depth case that has the scope to be tested in other contexts in future. Practical implications: This is the first study that demonstrates with real data from an industrial firm the effects of Blockchain on the efficiency gains, reduction on the number of operations and human-processing savings. A detailed description of the Blockchain implementation is provided. Furthermore, this research shows a list of the resources and capabilities needed for building and maintaining a Blockchain in the context of supply chains. Originality/value: This is the first study that demonstrates with real data from an industrial firm the effects of Blockchain on the efficiency gains, the reduction in the number of operations and human-processing savings. A detailed description of the Blockchain implementation is provided. This paper contributes to the resource-based view of the firm, by demonstrating two new competitive valuable capabilities and a new dynamic capability that organisations develop when implementing and using Blockchain in a supply–demand process. It also contributes to the information processing theory by highlighting the analytics capabilities required to sustain Blockchain-related operations.

Original languageEnglish
Pages (from-to)993-1022
Number of pages30
JournalInternational Journal of Operations and Production Management
Volume39
Early online date8 Oct 2019
DOIs
Publication statusPublished - 2 Dec 2019

Bibliographical note

Copyright © 2019, Emerald Publishing Limited. This accepted manuscript is available under a CC BY NC licence. To reuse the AAM for commercial purposes, permission should be sought by contacting permissions@emeraldinsight.com.

Keywords

  • Blockchain
  • Digital technology
  • Information processing theory (IPT)
  • Resource-based view (RBV)
  • Supply chain

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