“SUPPLY CHAIN INNOVATION AND INDUSTRY 4.

0”

An Internal Assessment Project for Industrial Project Report

Under the Guidance of

Internal Guide
Dr Saurabh Tiwari
HOD and Professor
Department of Transportation, School of Business
University of Petroleum and Energy Studies

Submitted by:
Modoyini Mao
500080686
Navin John
500080730
 CONTENTS

1. Introduction
1.1 Supply Chain Innovation
1.2 Industry 4.0
1.3 Project Description
1.4 Objectives
2. A conceptual framework of digital SCI
2.1 Business Process
2.2 Digital technologies
2.3 Business Architectures
3. Research Methodology
3.1 Sources and Types of Data
3.2 Method of Data Collection
3.3 Tools of Analysis
3.4 Scope of Project
3.5 Limitations
4. Analysis & Interpretation of
4.1 Main Supply Chain Innovation
4.2 Supply Chain Innovation with IoT
4.3 Supply Chain Innovation with Blockchain
5. Conclusion and Suggestions
5.1 Conclusion
6. References

Table 1. Examples of content elements of SCI

Table 2: Innovations in Supply Chain

Figure 1. Industry 4.0 technologies

Figure 2. Elements of supply chain innovation
Figure 3: Layer architecture of supply chain system in IoT context.
Figure 4: An architecture of cold chain traceability system.
1. Introduction

Supply chain management promises competitive advantage from your competitors in the
aggressively growing business environment. The introduction of new products and services, or
entry into a new market, is probably going to be more fruitful whenever joined by an innovative
supply chain and technology. This is a broadly acknowledged in business practice today

The advancement of technologies will have profound effect on both the business and society
as whole. Similarly, already established organizations utilizes advanced innovation to change
their inventory Supply Chain (SC) network models, carrying out SC methodology and
indicating major factors through which they offer some incentive to clients. This phenomenon,
otherwise called 'Industry 4.0' (i4.0) or the (Industrial) 'Internet of Things' (IoT), has gotten a
lot of highlights in experts' networks. i4.0 embodies a vision of intelligent and connected
physical assets, for example smart items and machines, that work independently and can form
self-coordinating frameworks like smart factories and SCs. Besides, these innovations
empower new SC working models that supplement or even supplant conventional traditional
ways of methods. These digital startups have disrupted traditional industries dramatically:
examples include Netflix (video distribution/rental), Uber (passenger transportation), and
Airbnb (lodging).

As the market for logistics and transport expands aggressively, an increasing number of
logistics and transport firms tries to seek the operational and managerial excellence with the
goal that the organization can give the amazing logistics tasks and solutions to acquire a
company's market share for sustainability in the long haul. This is one of the significant goals
of the fourth industrial revolution (Industry 4.0), which speeds up the improvement and
innovation in different businesses. The risk involved in Supply chain is one of the impediments
to accomplishing operational excellence. Numerous business analysts and researchers urges
that Supply chain risk is an issue in supply chain and logistics. Furthermore, Supply chain risk
plays a crucial part in building versatility and accomplishing sustainability of organizations.
 1.1 Supply Chain Innovation

Supply chain innovation is highlighted as a critical area for most organizations. A study led by
Flint (2007) says that competing in the operational and supply chain process is more sustainable
than in launching new innovative products. This is because of the way that assets apportioned
in supply chain saves more internal resources and lesser expense and also has more impact in
the long run, rather than the high unpredictability of launching a new product.

Supply chain innovation is the alteration in the supply chain network, technology and process
with new logistics or marketing procedures and technologies within the company or industry
to improve the operational efficiency in order to enhance the value creation for the
stakeholders. Supply chain innovation involves the adoption and implementation of new
procedures and technologies that result in modification of the organization’s systems, not just
processes and technologies that are commonly used in industry but are ‘new’ to the industry.

A few instances of Supply chain innovation in significant organizations.

Caterpillar (CAT), for example, separated its business on service parts accessibility,
promising its access worldwide that far beat its rivals. By forming an integrated organization
that allowed them to supply spare parts any place on earth inside 48 hours’ time – none other
had formed such a strong organization – CAT made an upper hand over its competitors.

FedEx core innovation was the development of hub and spoke model that allowed another
support offering. This model guaranteed speed delivery. The advancement served an
undiscovered market for quick delivery, and seemingly encouraged more interest for the
administrations as they turned out to be more reasonable and reliable, enhancing value for
customers with logistics. Least cost for faster and reliable service delivery.

Dell's customize order called make-to-order, which is a customer driven supply chain approach
has completely disrupted the PC business industry by offering customized order at lower costs
with a reliable yet moderately high assistance and service level.
Companies like Apple, Ikea, Wal-Mart, Zara, HP, Benetton, and large e-commerce companies
like Amazon and Flipkart are only a couple of instances that have applied supply chain
innovations and has completely disrupted their industry. In spite of all this load of success
stories examples, a clear assessment of the core driving reasons behind supply chain innovation
has yet to be conducted.
 1.2 Industry 4.0

Since the 1800s, we have encountered three industrial revolutions. Each was controlled by a
disruptive new innovation: the mechanics of the steam engine, the innovation of the sequential
construction system, and the speed of the computers. The main purpose why they were called
industrial "revolution" was on the grounds that the innovation that drove them didn't simply
only improve productivity and the efficiency of operation and process – it totally reformed how
the products were created and manufactured but also how work was finished.

We are presently in the Fourth Industrial Revolution, otherwise known as Industry 4.0, which
revolutionized the robotization, planning, and analyzing the supply chains through digital
innovation. Industry 4.0 is controlled by the Industrial Internet of Things (IIoT)– smart,
independent frameworks that utilize computer-based calculations to screen and control actual
things like machines, robots, and vehicles. Industry 4.0 makes everything in your supply chain
“smart" – from smart production to smart warehousing and logistics. Yet, Industry 4.0 doesn't
stop at just the supply chain network. It connects associates with back-end frameworks, like
the Enterprise Resource Planning (ERP), to give organizations an extraordinary degree of
transparency and control. Ultimately, Industry 4.0 is a significant piece of any organization's
digital transformation.

Figure 1. Industry 4.0 technologies

1.4 Project Description

Emerging technologies, shifting consumer expectations and rising pressures from major
players and new entrants to the market have acquired immense change in supply
chain management. logistics industry is the string which connects all remaining businesses
together. Transportation plays a preeminent role in global logistics & supply chain
management, which facilitates the economic advancement of a country. During the past few
years, logistics industry has seen some amazing change and trends. Innovative technologies are
changing the worldwide business relations.
Consistently expanding client requests, new buying habits, the development and evolution of
ecommerce has affected the worldwide strategic framework. From efficient transport
management system to data analytics, cloud computing, Internet-of-Things and enterprise
mobility solutions. The technological advancements will take logistics & supply chain industry
to the next level. It has become fundamentally necessary for the service providers to use
technological innovations to utilize maximum space, manpower, warehouses, vehicles etc. with
control on wastage & fuel charges.
This paper is to discuss the technological trends in logistics & supply chain industry, some of
the technological innovations or advancements which going to shape the entire concept of
logistics.

1.5 Objectives

1. To examine and learn from previous innovations in order to identify potential key factors
and possible best practices that may be used more broadly in industry.

2. Examines the systematic ways in which companies can identify and manage potential supply
chain innovations.
 2. A conceptual model of digital SCI

Supply chain innovations are not static elements but will normally be triggered by the
company’s dynamic action and collaboration with their business environment. Figure 2
identifies the dynamic process in and around the three elements in recognition of a need for
change in a companies’ business model. Supply chain innovation model assess their innovative
capability, identify performance gaps and define actions for success in managing innovation.

Based on the existing research papers and literature reviews, this paper suggests a conceptual
SCI model, covering three main interacting content elements namely:
• Supply Chain Business Process
• Supply Chain Technology
• Supply Chain Network Structure

A business process is a structured activities or tasks by the people or equipment/ machines in

which a specific sequence produces a service or product for a particular customer or
customers. Business process is an essential element in the supply chain management. SCM is
concerned with the business relationship management between the intra and inter
organizational business process. Thus, serve as the first dimension of the conceptual model.
The product of any innovation process is denoted as the innovation content. Innovation content
is perceived as “what” is the innovation while in contrast to the innovation process perspective
is “how” the innovation is carried out. Consequently, the process and content have direct
influence on each-other. Say for example, the content/product on an innovation may have an
impact on the way the process will be planned and organized, and vice-versa whereby if we
start with the process, it may affect the specific content/product.

Given that this paper emphasis on i4.0, digital technologies address as the key variable factor
and thus any technologies that can contribute towards a supply chain innovation.

The Supply chain network structure covers the conceptual description of the organization's
structure and the business guidelines that are needed to accomplish its business objectives. To
redefine the structure of the value chain in order to gain advantage over rivals. This coincides
with a more business-oriented perspective on technology-driven innovation as part of the
digital transformation. Thus, this paper aims to clarify the way in which the content of SCI can
be operationalized.

Typical problems causing SCI may be extensive lead times, high supply chain expenses and
lower service levels. The recognition for the need to change should start by analyzing the
current process and recommending new solutions for improvements. These new suggested
solutions adopted must be implemented and after a while might need more improvements
again. This is done to boost new value created for the consumers and stakeholders.
The conceptual model is summarized in Figure 2

Figure 2. Elements of supply chain innovation

2.1 Business Process

The main component in the SCI model is supply chain business process. Business process are
the actions that produce a particular outcome of significant value to the client/ customers.
Business process can be characterized as: ''an organized, measured set of activities intended to
deliver a predefined output for a specific client or market'' or in other words business process
is a structured activities or tasks by the people or equipment/ machines in which a specific
sequence produces a service or product for a particular customer or customers.

Supply Chain business processes involves a specific supply chain innovation, every process
has its very own innovations. This involves embracing an idea or concept of supply chain that
incorporates all the processes, from product design-manufacturing to delivering of the product
to clients. Various kinds of development include various business processes of the supply
chain—procurement, inventory management, demand management, order fulfillment,
production, logistics and distribution, and product development.
For process models on supply chain efficiency, we refer to the SCOR Model by the Supply
Chain Council. The Global Supply Chain Forum has distinguished eight SCM processes with
subprocesses that are mentioned below:

• Manufacturing Flow Management

• Supplier Relationship Management
• Customer Relationship Management
• Customer Service Management
• Product Development and Commercialization
• Return Management
• Demand Management
• Order Fulfillment

2.2 Digital technologies

The second component of the SCI model is supply chain digital technologies. By this
component, we mean technologies that can be applied alone or in mix with different
technologies or the two different elements in the model to make SCIs. Digital technologies can
help the people, technical system and organizations be smart and to make a well-informed
decision.

2.2.1 Core technologies

This paper uses the concept of socio-technical systems. The primary bundle of digital
technologies incorporates social media platforms, mobile computing analytics and cloud
computing. Further additional technologies such as augmented reality are often mentioned.
Another would be the Cyber Physical System (CPS) is an intelligent computer system which
is mechanized to control and monitor the computer-based algorithms. It an engineered system
that can communicate with each other to form the IoT, the physical and software components
are deeply or intensely intertwined to operate. They use big data and analytics to make an
autonomous and well-informed decision. In other words CPS is a platform comprising of a
mechanical system that is controlled by computer algorithms that are tightly integrated with
the IoT/ Internet and the network users.

2.2.2 Complementary Technologies

There are two groups of complementary technologies extend the digital center of smart
innovations for SCM. Hardware and software driven technologies.

Hardware driven technologies mostly incorporate for additive manufacturing ('3D printing'),
autonomous vehicles, drones, and robots. While autonomous vehicles, robots and drones
improve productivity through automation in the process. All the more definitively, additive
manufacturing supports a quick and rapidly prototyping in item manufacturing and
development, it also allows customized product development and production making nearby
or close shore production conceivable.

Software-driven technologies known primarily for the digital money Bitcoin, blockchain
technology (BCT) gives an open and trusted record for recording business activities and value
exchanges between organizations and partners. In i4.0, BCT could enable tracking and tracing
of goods along a SC and could even automate cross-organization activities dependent on
business rules and guidelines that are carried out in smart contracts.

The new developments in hardware or software technologies that may enable alterations in the
process or industry structure, depending on the adoption and application. Technology can
enable a change in supply chain design and/or performance, but rarely does a technology
constitute the change in and of itself. More often, modifications and alterations in the process
and application are necessary to leverage the technology.

For instance, radio-frequency identification (RFID) is often said to be an innovation. However,

the actual supply chain innovation was the change in tracking and tracing capabilities that was
enabled, not the technology itself. Let’s consider the act of the Swedish vehicle producer
VOLVO. VOLVO has executed an innovative portable RFID solution utilizing cell networks
(GSM/GPRS) along with web technology. One more example is the use of advanced planning
systems in supply chains that allows innovations and advancements in cross-organization
cooperation, speed in data stream and information flow, and demand visibility. Third example
is the manner by which the utilization of e-procurement auctions can further improve market
structure, behavior, and its performance.

2.3 Supply Chain Network Structure

The third element of the SCI model focuses on the Supply Chain Network Structure. This
Supply chain network structure comprises of the member firms and the links/ connections
between these firms and organizations. This element divides the structure of the supply chain
into three distinct factors:
(1) Members of the supply chain;
(2) Structural dimensions, and
(3) Different types of process link

The membership element draws attention to activities related to mapping the supply chain
structure and then, based on differentiation models, classifies suppliers and customers into
different degrees of importance. There are primary and support members, the primary members
are those that provide value adding activities in the business process while the supporting
members are organizations or companies that just give assets, information/ knowledge, utilities
and resources.
For instance, of supporting companies: rent or lease trucks to the manufacturers, banks that
loan cash to a retailer, companies that supply production equipment, print marketing brochures,
or provide administrative assistance and help.

The structural dimension includes the vertical, horizontal and the horizontal position of the
company with its end points of the supply chain that maybe the near the initial source of supply
or the ultimate customer or somewhere between these end points of the supply chain.
The first dimension is the horizontal structure suggest the number of levels/ tiers in the supply
chain. It can may be long and numerous tiers or short and few tiers. The second dimension is
the vertical structure, alludes to the quantity of suppliers and customers addressed within each
tier. A company can have narrow or restricted vertical structure with few companies at each
level or a wide vertical structure with numerous suppliers and customers at each tier. The third
dimension is the company’s horizontal position within the supply chain. An organization can
be situated at or close to the initial source of supply, be at or near to the ultimate customer, or
be somewhere between these end points of the supply chain.

Process links are concerned with different degrees of resources spent on integrating and
managing processes within and across members of the supply chain. Some process links need
to be managed, while others do not.

The network structure element can likewise be unfurled through virtual organizations in which
new worth creation depends on information resources. Such center skills foster the association's
capacity to support long haul associations with clients and providers. One more illustration of
this is the manner by which intercompany collaboration can stimulate constant advancements
in supply chains. A final illustration of innovations within the supply chain network structure
is the emergent practice of in - outsourcing—with its focus on a round-way process Logistics.

Table 1. Examples of content elements of SCI

Supply chain business Supply chain technology Supply chain network

processes structure
• Customer • Global positioning • In- and outsourcing
relationship systems (GPS) • Partnership
management • Bar coding • Collaboration
• Customer service • Radio frequency • Distribution channels
management identification (RFID) • Type of links to
• Demand • Pick-by-voice supply chain actors
management technology • Third-party logistics
• Order fulfillment • Electronic data providers
• Manufacturing flow interchange (EDI) • Fourth-party
management • Advanced planning logistics providers
• Supplier relationship systems (APS) • Joint ventures
management
• Product development • Warehouse • Complexity in
• Return management management systems supply
(WMS)
• Enterprise resource
planning (ERP)
• Manufacturing
execution system
(MES)
• Product life cycle
management (PLM)
• Business intelligence
• Internet E-auctions
3. Research Methodology

3.1 Sources and Types of Data

Secondary Data
• Secondary data is collected from the pre-existing literature in internet in order to gain
a better understanding on the challenges.

• Literature survey: Research papers, journals and internet sites.

• Past data records in the form of journals or database entries provided from various
agencies

• Google Scholar

• Websites

3.2 Method of Data Collection

• Secondary data collection

3.3 Scope of Project

• The primary scope of the study is to find out the effect of innovation in the supply
chain.
• To understand the different kinds of Logistic Innovations Trending in Supply Chain
Management and their impact in revolutionizing the logistic and supply chain sectors.

3.5 Limitations

● Due to the ongoing COVID-19 pandemic, physical data collection and on-ground
research could not be conducted.
4. Analysis & Interpretation of

4.1 Main Supply Chain Innovation

Table 2: Innovations in Supply Chain

4.2 Supply Chain Innovation with IoT

IOT is a system that connects devices to the internet turning them into intelligent assets that
can communicate. It offers technical help for improving the visibility and stability of supply
chain and acknowledging smart management and administration of supply chain.

4.2.1 Characteristics of supply chain system in IOT context

a. Improving the visibility and transparency of supply chain

With the advancement of the internet, IOT can play a significant role in supply chain for
integrating and sharing the information across the supply chain process. With traditional
process, information is not always in sync with the material flow causing a gap in the supply
chain. Consequently, making it difficult to capture the execution of the supply chain on real
time basis. IOT can be the next generation internet technology, with the use of sensors and
RFID tags, we can collect the information and data automatically on real time basis and can
operate and process the supply chain on real time basis closing the gap between information.
IOT can provide connections between various organization at any time and place, providing
status and related information of the goods at any time and place.

For example, in case of agriculture supply chain, the introduction of IOT has brought new
opportunity and scopes to intelligent agriculture. With the implementation of RFID tags,
wireless sensors and transmission equipment, tracing and tracking can be done with visual
digital management of agricultural commodities providing real time information throughout
the entire process of supply chain from the production to warehouse and then retailers.
Intelligent management can monitor the digitalized and visualized logistics and smart digital
management of the agricultural commodities. IOT also provides the weather/ climate condition,
hence increasing its quality.

Figure 3: Layer architecture of supply chain system in IoT context.

b. Improving the robustness of supply chain

In light of IoT innovation, decision making entities in SC can dig and accumulate information
with higher accuracy and acquire more precise information, shortening the lead team of
forecasting demand for items. IOT enables most realistic and accurate numbers as well for
forecasting. Also provides a POS terminal (Point of Sale) transit sales patterns and figures.
Simultaneously, the use of IOT innovation likewise gives data sharing mechanism to decision
making in SC, consequently minimizing the bullwhip effect and uncertainty of supply chain,
improving the robustness of supply chains.

In the IoT setting, implementing IoT innovation can help make a real time monitoring and
decision making across the entire production network all through the course of supply chains,
in the meantime, precise administration of the quality, variability, quantity, and data for raw.
Likewise, ideal replenishment of stock is performed; thus, shortening of production cycle,
decreasing of cost, inventory and ultimately supply chain uncertainty can be realized.

With the change in market condition, the demand also changes across multiple channels. With
the help of IOT, a company can instantly use data from the IOT to know the position of all the
products and its part in the supply chain. This can expedite the products available straight to
the customers.

An efficient warehouse management plays a significant role in supply chain. IOT enable a more
simplified warehouse management. The process of collecting information through IOT for
warehousing, location and quantity is more accurate and correct with the real time inventory
status. Also improving the space utilization in the warehouse, decreasing cost thereby
enhancing the robustness of the supply chain.

For example, in an IOT enabled warehouse, each product has an RFID tag on it and the shelves
has sensors on them. Every product has to know where it should be put away. Once the product
is received in the warehouse and the products are scanned with RF guns or automation MHE.
The Tag installed on the product guide the MHE or the operator for put away in the warehouse.
Sensors and RFID enabled smart shelves in warehouse can maintain a live count of the products
in the warehouse. Thus, eliminating the cycle count manually. The temperature sensors and the
cameras in the shelves also detects the condition of the products. These in transit stock
temperatures reading can help the perishable products from being damaged.

c. Intelligent Supply chain management

Complex supply chain spells trouble for companies trying to manage risks and digitally manage
their supply chain. Any inaccuracy can rapidly translate into any expensive cost for the
company and may cause costly delays for the company which may result to high wastage and
customer dissatisfaction. With increasing demand of the customers in more transparency and
traceability for their goods. Which is why an intelligent supply chain management is s an
important subject of the supply chain system based on IoT and one of the major changes in
supply chain function.

The development of IOT technology provides technical support to the intelligent management
of supply chain. Extracting valuable information and providing a timely information regarding
supply chain operation status and hence making an informative intelligent decision making.

Some of the intelligent supply chain management can be:

• Real time visibility and transparency of your end-to-end supply chain.

• Maximization and utilization of cost through automated shipments.
• AI enabled supply chain planning, to allow optimize demand planning and traceability
of origins through blockchains.
• Enhance customer experience through the delivery of the best quality goods at the right
time.

4.2.2 Innovation of Supply chain functions and process in IOT context

a. Innovation in planning functions

• To accomplish the objective of SC with regards to IoT, and to improve the

visualization and transparency, and stability in SC, the planning function must be
adjusted.

• In the context of IoT, the utilization of sensing gadgets, for example, RFID tags and
wireless remote sensors, the integration and implementation of wired and wireless
technology and Internet, and the progression of mass information mining
technology can provide data for planning with better accuracy and speed, hence
significantly improving the accuracy of planning.

b. Innovation in organizing functions

• Traditional organizing functions are mostly performed through oral form, written form,
telephone, and so forth. With IoT innovation, a variety of new forms can be adopted.
For instance, with the advancement of artificial intelligence technology, smart robots,
as another sort of new workforce, are influencing and changing the labor working
pattern.

• This change in the work force has attracted extensive attention with its benefits like
high efficiency and minimal expense.

• The new trend is that machines are replacing humans in logistics operations as they
strive to keep up with demand from the fast-growing market. Today’s warehouses are
implementing partial automation
 • Robotics and automation can take over the repetitious tasks (picking, receiving, put-
away) from humans to achieve more consistent, accurate, and productive warehouse
operations.

• For example: Amazon Kiva robots, which do goods-to-person picking. This eliminates
the picker’s walking time to vastly improve the warehouse’s efficiency.

c. Innovations in procurement

• With the acquisition of real-time and accurate delivery information, the misuse of asset
and time that might result in in procurement is greatly diminished, and the stability of
procurement is significantly raised.

• For model, RFID system can manage with the delivery amount/quantity, model, and
data of quality given by raw material supplier, variety, model and batch number,
production date of raw materials or parts. Along these lines, replenishment can be led
on schedule, and overstocks effectively be reduced.

d. Innovations in logistics

• With the use of IoT, logistics section has transformed from the traditional one to
intelligent logistics.
• Implementing IoT innovation can realize real-time monitoring of the whole end-to-end
process and timely decision-making, inducing the automation of the entire activity
measure that concludes from procurement, production, and transportation of raw
materials. Multi-Criteria Methods and Techniques Applied to Supply Chain
Management Checking of warehousing, transfer, distribution, and transportation is
completed through IoT innovation.
• Accordingly, logistics expense such as inventory and transportation, costs are
minimized, and waste in links is lessened by large extent. There is no question that the
adoption of information streams precisely controls the logistics process, subsequently
maximizing the profit.

e. Innovations in sales and marketing

• The utilization of IoT technology in sales leads to the development of different checkout
techniques. In detail, cashier can use smart cash register for checkout, and instead of
checking and scanning goods one by one for settlement, RFID reader can quickly and
automatically read and display the total price of the goods in smart shopping cart.

• Payment techniques for clients to choose from include cash payment, bank card
payment, check payment, mobile payment, fingerprint payment, and others. Clearly,
automated or intelligent transactions reduce the occurrence of manual blunders and
 related transactional issues. Meanwhile, loss of products or pilferages and so forth, can
be likewise decreased.

f. Innovations in after-sales service

• The implementation of IoT technology in after-sales part adds to better service, assists
in government regulation, and ensures the security of buyers' interests.

• With the data recorded in RFID tag, enterprise can look sold items' information like its
production time, auditor/inspector, batch number, serial numbers, and so on, in order to
resolve after-sale issues and offer better assistance to customers.

• Then again, the use of IoT innovation ensures the establishment of a robust product
tracing system, which traces from top to bottom. In detail, tracing along raw material
suppliers, production and processing companies, logistics companies, vendors or
retailers, and finally, the customers. When issue happens, the problematic connection
can be discovered conveniently. In the event that a buyer buys flawed or defective
items, tracing from base to top will be led for the protection of customer rights and
interests.

4.2.3. IoT-based food supply chain innovation

The possibility of IoT innovation in agricultural industry is broad. Lately, IoT and big data has
turned into the backbone of smart agriculture. The utilization of IoT innovation works on the
visualization and transparency of food supply chain, diminishing the uncertainty of supply
chain. Food safety has turned into an issue worried by the consumer. Because of the qualities
of fresh food, different chemicals and physical changes happen during its circulation process,
and any issue in the cycle might cause issue of food safety. Therefore, the main condition for
guaranteeing quality and safety of fresh food is to develop a cold chain detectability framework
(a traceability system)

Implementation of cold chain traceability system

Cold chain is a unique food supply chain, in which temperature is consistently taken care of all
through the cycle from raw materials and resources procurement, storage, transportation,
handling to product sales, and consumption to ensure food handling. Food supply chain focuses
on worldwide resource and raw materials procurement, global manufacturing, and global sales.
In this manner, the transporter of the data should likewise be globalized. A bunch of universally
uniform following codes are basic for food supply and demand network. In the event that all
the cold chain enterprises participate in food supply and demand network embrace this set of
codes, correspondence and communication among these enterprises will become smoother,
inconsistencies brought about by various guidelines will be diminished; likewise, tracing
effectiveness can be improved and cost or expense can be diminished, which likewise also
reflects the connectivity and openness of food supply and demand network.
Figure 4: An architecture of cold chain traceability system.
4.3 Supply Chain Innovation with Blockchain

Blockchain is a technology that can allow authenticated data communication between each
player in a supply chain without the intermediation of a trusted central organization. By
verifying and adding data in real time, blockchain can increase transparency across a supply
chain. A blockchain is “a technology that allows people who don’t know each other to trust a
shared record of events.”
Virtually anything useful is often tracked and traded on a blockchain network, reducing risk
and cutting costs for all involved. In particular, the ocean freight industry can massively enjoy
the adoption of blockchain. Specifically, it can enhance all the trade documentation and
administrative processing for ocean freight shipments. A blockchain-based system can
effectively replace the present means of communication, acting as a “single source of truth.”
All entities will be ready to seamlessly add the required data, leading to fewer delays and better
visibility.
Using blockchain, companies can finally have the complete picture of their products at every
stage in the supply chain, bringing transparency to the production process while reducing the
cost of manufactured goods.

Potential value drivers of blockchain

• Transparency and material traceability

• Reduced administrative costs
• Lowered risk of fraud and gray-market trading
• Better control of outsourced contract manufacturing

Managers can realize significant benefits from blockchain, starting from cost-savings and
increased efficiencies to new operational models, specifically within the following areas of
supply chain management:

Procurement

• Blockchain can act as a “single source of truth” for all the entities
• A blockchain-based database can store relevant data from all of your partners, giving
your company a 360-view of the entire volume of purchases, no matter who managed
the acquisition activity.
• There’ll be no need for individual users to share operational data and somebody else
to crosscheck it constantly — the audits will be conducted automatically, eliminating
the resource-heavy processes like extra price verification.

Digital payments and contracts

 • Smart contracts devised on the blockchain can automate the invoicing process and
“patch” the expensive procure-to-pay gaps. Payment terms are often codified, and
cash is often obtained immediately after the trade has been executed and a logistics
company has provided proof of delivery.
• Any activity can be documented and stored in the distributed ledger in smart
contracts, and shared only with consensus among all participated stack holders. Thus,
making the network more trust worthy then any individual entity. Stakeholder can
trust each other through smart contracts without the need of a centralised body. Every
stack holder will have the same copy of the distributed general ledger which enables
information access in near real time.
• Blockchain can help pay for supply chain vendors autonomously with smart contracts.
Each individual stakeholders can be paid once the contract with the first two
stockholders is completed and the consignments are accepted. Payments are
automatically notified to the banks for an open account transfer and the transaction
details will be updated on the blockchain network.
• This would reduce the need for large contract invoices and the back and forth of
refund request for faulty components. The smart contracts could assist with shipping
and logistics tracking valuable products as they travel around the world.

Benefits of Block Chain

• Increase traceability of fabric supply chain to make sure corporate standards are met
• Lower losses from counterfeit/Gray market trading
• Improve visibility and compliance over outsourced contract manufacturing
• Reduce paperwork and administrative costs
• Strengthen corporate reputation through providing transparency of materials utilized in
products
• Improve creditability and charitable trust of knowledge sharing
• Reduce potential P.R. risk from supply chain malpractice
• Engage stakeholders
5. Conclusion and Suggestions

5.1 Conclusion

Businesses pursue supply chain innovation to improve the efficiency, agility and resiliency of
their supply chains. In addition, supply chain innovation is expected to drive more prominent
levels of strategic partnerships, value creation and sustainability. In the quest for true supply
chain innovation, companies should focus on gradual supply-chain process improvements
and new business models. Then, tested and proven improvements or model innovations
should be implemented. Effective collaboration and communication tools and techniques
should be implemented to facilitate stakeholder involvement in decision-making, and
possible avoid misaligned strategies and action plans. Collaboration between multiple
stakeholders will bring greater reward for supply chain innovation.

This research has made theoretical contributions to supply chain innovation, particularly the
arguments building in existing literature on the primary capabilities to and consequences of
such innovation. There are few technologies which are going to change and improve the
logistics and supply chain industry. These technological innovations will assist the business
with defeating some extreme difficulties like cost optimization, faster service, damage
management, route optimization, warehouse management and significantly more.

This will bring the truly necessary productivity and the most elevated level of customer
satisfaction. Overall, we are going to witness a stronger and connected logistic service.
Regardless of the significance of this issue to both practitioners and researchers, we have yet
to see a common framework for cataloguing main supply chain innovations. A detailed model
and in-depth analysis are expected to help organizations in comprehensive understanding and
implementing innovation in the supply chain. . Much work obviously still needs to be done
around here in this area. We hope that this paper will set the establishment for additional
review and examination.
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