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Enhancing Vendor Managed Inventory with the Application of Blockchain Technology

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Advances in System-Integrated Intelligence (SYSINT 2022)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 546))

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Abstract

As a result of globalization, supply chain networks have grown in complexity and size, posing several issues and chances for development. Inventory optimization and replenishment policy adjustments have a substantial impact on supply chain operating performance and profitability. Vendor Managed Inventory (VMI) is a mutually advantageous agreement between a supplier and a customer in which the supplier oversees inventory and replenishment decisions based on the inventory status of the customer. VMI operations encounter major hurdles in today’s supply chains, including trust, data integrity, transparency, and traceability for multiple supplier and customer interactions. Blockchain technology is a distributed ledger that ensures that data is exchanged in a transparent, safe, and secure manner across supply chain stakeholders. The advantages of adopting blockchain technology for VMI operations in a supply chain include decentralized control, security, traceability, and auditable time-stamped transactions. This paper discusses a blockchain-based approach to enhance the VMI supply chain operations. It proposes a generic framework to enable the suppliers and customers order matching in a decentralized mode while fulfilling the trust in terms of managing the data accessibility among the stakeholders as an important prerequisite for VMI establishment. A case study is designed to compare the traditional and blockchain solutions.

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Authors and Affiliations

  1. School of Business, Social and Decision Sciences, Jacobs University Bremen, Campus Ring 1, 28759, Bremen, Germany

    Santhosh Ganesan, Hendro Wicaksono & Omid Fatahi Valilai

Authors
  1. Santhosh Ganesan
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  2. Hendro Wicaksono
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  3. Omid Fatahi Valilai
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Corresponding author

Correspondence to Omid Fatahi Valilai .

Editor information

Editors and Affiliations

  1. Department of Electrical, Electronic and Telecommunication Engineering and Naval Architecture (DITEN), University of Genova, Genoa, Italy

    Maurizio Valle

  2. Fraunhofer Institute for Manufacturing Technology and Advanced Materials, Bremen, Germany

    Dirk Lehmhus

  3. Department of Electrical, Electronic and Telecommunication Engineering and Naval Architecture (DITEN), University of Genova, Genoa, Italy

    Christian Gianoglio

  4. Department of Electrical, Electronic and Telecommunication Engineering and Naval Architecture (DITEN), University of Genova, Genoa, Italy

    Edoardo Ragusa

  5. Department of Electrical, Electronic and Telecommunication Engineering and Naval Architecture (DITEN), University of Genova, Genoa, Italy

    Lucia Seminara

  6. Computer Science and Mathematics, University of Bremen, Bremen, Germany

    Stefan Bosse

  7. Department of Electrical and Electronics Engineering (EEE), Lebanese International University (LIU), Beirut, Lebanon

    Ali Ibrahim

  8. BIBA, University of Bremen, Bremen, Germany

    Klaus-Dieter Thoben

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Ganesan, S., Wicaksono, H., Fatahi Valilai, O. (2023). Enhancing Vendor Managed Inventory with the Application of Blockchain Technology. In: Valle, M., et al. Advances in System-Integrated Intelligence. SYSINT 2022. Lecture Notes in Networks and Systems, vol 546. Springer, Cham. https://doi.org/10.1007/978-3-031-16281-7_26

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  • DOI: https://doi.org/10.1007/978-3-031-16281-7_26

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