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Intelligent Smart Contracts for Innovative Supply Chain Management
Authors Paolo Bottoni, Nicola Gessa, Gilda Massa, Remo Pareschi, Hesham Selim, Enrico Arcuri  Year 2020
Pubblication type Paper International Journal with referee
Abstract We propose blockchains and smart contracts as enabling technologies for an innovative type of supply chain management, with the
goal of achieving higher levels of collaboration between the companies participating in the chain, which in turn pays in the form of
higher levels of profitability and economic health for the participating enterprises. Our proposal goes far beyond simply using
blockchains as decentralized systems to track the origin and delivery of goods, which is what most of the current blockchain
projects on supply chains are focused on. In fact, we introduce a type of smart contract aimed to solve two of the main problems
that hinder the efficiency and effectiveness of supply chains, namely trust and coordination. Solving the problem of trust amounts
to the capability of establishing quickly and cheaply contractual relationships based on convergent business needs among parties
that may not know each other, and therefore need to protect themselves from opportunistic or incorrect behavior. Solving the
problem of coordination consists in creating, at convenient management costs, a control system capable of directing the objectives
of the supply chain as a whole, so as to achieve a greater common good in the medium term, as an alternative to the state of
affairs in which each participant pursues, on its own behalf, lower but immediate returns. Our smart contracts for innovative
supply chain management replace human coordinators in tackling the problems above, thus eliminating one major obstacle to their
effective solution, namely the need to trust the coordinator itself. Furthermore, in this way, by automating the process of
coordination, they unburden the supply chain of a considerable management cost. Contracts of this kind not only automate
contract execution as in standard smart contracts, but also adjust costs and compensations of the members of a supply chain,
effectively taking up the role that was of human coordinators. Thus, we refer to them as 'intelligent smart contracts'. In the
course of the paper, we will illustrate an innovative supply chain architecture based on intelligent smart contracts running on
blockchain, we will detail the algorithmic methodologies underlying the decision-making process of these contracts
Reference Paolo Bottoni, Nicola Gessa, Gilda Massa, Remo Pareschi, Hesham Selim, Enrico Arcuri, Intelligent Smart Contracts for Innovative Supply Chain Management, Frontiers in Blockchain, section Non-Financial Blockchain - Michael Henke
Research unit EDI
Keywords Revenue sharing, supply chain, Blockchain, Smart contract, Digital trust, algorithmic coordination
LastUpdate 04/11/2020
impact factor Falso




   


 

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