Transforming milk supply chains with blockchain: enhancing visibility and cost reduction
Abstract
Purpose
Milk is a perishable food product, one of the primary sources of nutrition. Reports worldwide indicate numerous food frauds and foodborne diseases associated with adulterated milk products. These safety concerns highlight the importance of a visible milk supply chain, which can be achieved by cutting-edge technologies. However, these technologies come with high costs. So, this study aims to propose a framework that integrates blockchain, Internet of Things (IoT) and cloud to enhance visibility with reduced cost in an Australian milk supply chain (AMSC).
Design/methodology/approach
A design science research methodology is used, where a proof of concept is also developed at the retailer end to show how blockchain, IoT and cloud can improve visibility with reduced cost in an AMSC.
Findings
According to cost and visibility analysis, blockchain implementation in AMSC would generate a high return on investment (ROI). For the given case, ROI becomes positive for all stakeholders after 750 cycles. Integrating IoT, cloud and blockchain is more profitable than just using blockchain. Additionally, technology implementation may not benefit all stakeholders equally. For example, the retailer needs 10 cycles to benefit, but the transporter needs 50 in the given case.
Practical implications
The findings of this study assist milk industries in decision-making regarding technology implementation in their supply chain and motivate them to implement these technologies, resulting in improved trust and coordination among entities and consumers.
Originality/value
A cost and visibility analysis are performed to evaluate the impact of technology implementation on cost and visibility in an AMSC. A SOAR (Strength Opportunities Aspiration Results) analysis is also performed for the strategic planning framework.
Keywords
Acknowledgements
This work was funded partly by the Cyber Security Center, Indian Institute of Technology Madras, India, and the Natsoft Consulting Pty Ltd at Curtin University’s Blockchain Research and Development Laboratory, Perth, Australia.
Citation
Vasanthraj, V., Potdar, V., Agrawal, H. and Kaur, A. (2024), "Transforming milk supply chains with blockchain: enhancing visibility and cost reduction", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-10-2023-0702
Publisher
:Emerald Publishing Limited
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