Blockchain as enabling factor for implementing RFID and IoT technologies in VMI: a simulation on the Parmigiano Reggiano supply chain

Abstract

Blockchain has recently been associated to Supply Chain Management to solve several problems and change operations management processes. The study proposes to analyse three different scenarios of the Parmigiano Reggiano supply chain considering blockchain technology as an enabler for the use of other technologies such as RFID and the Internet of Things (IoT) and for the exploitation of the Vendor Managed Inventory (VMI) strategy. The study is based on the evaluation of three agent-based simulation scenarios, a traditional "as is" scenario, a second "to be" scenario implementing emerging technologies including blockchain, and a third “to be” scenario that combines the second one with the VMI optimization strategy. The results show how the combined adoption of these technologies improves the procurement process and customer satisfaction. Findings highlight the impacts that the different scenarios have on the supply chain operations in a quantitative way and allows to evaluate the changes in supply chain processes. By employing emerging technologies, order management activities are more automated and time to order and lead time order preparation are reduced. However, to achieve these performances, other data capture tools such as RFID and IoT are needed. Finally, the introduction of the VMI strategy, when enabled by blockchain technology, improves the procurement performances and significantly reduces unfilled orders.