Automated Payment Solutions in Supply Chains Using Smart Contracts
Rohit Agarwal, G. Durgadevi, Zaid Ajzan Balassem, Dharmapuri Siri, Mahesh Kotha, Dilli Ganesh
Abstract
This study aims at exploring the direct adoption of smart contracts that enable automated payments in the supply chain management. In synthesis of qualitative survey findings and quantitative analysis of the closed-ended questions, the study determines the perceived advantages, constraints, and preparedness for implementation by the supply chain practitioners. These primary survey findings show that a clear majority of respondents had heard about blockchain technology (78 percent) and smart contracts (65 percent), but there is only shallow willingness to adopt the technology (54 percent). Among them there are recognized favorable factors as follows: Enhanced transparency (72%); lowered transaction costs (68%); hastened transactions (65%). But there are critical factors inhibiting the implementation of BPM; challenges like Technical hurdles (62%), regulatory bottlenecks (55%), and end-user resistance (50%). There now exists considerable case study evidence from pilot projects which substantiated all these benefits and challenges and thus the call to develop a systemic solution to address such quandaries. In this regard, the study concludes that though smart contracts hold great promise for increasing supply chain productivity and efficiency, solving Technical and legal questions constitutes critical elements when it comes to supply chain management and professionalism.