CITT News

Supply chain and logistics systems are the cornerstones of efficient goods movement. Efficient, timely, and ethical goods movement is essential to a thriving economy and market. Yet supply chain breakdowns happen every day, through mismanagement, mislabeling of products, and even fraud. Part of creating efficient supply chains is creating strong data management and goods tracking systems. In the 2020 research paper, “Blockchain Applications in Supply Chains and Intermodal Transportation,”  sponsored by the Intermodal Association of North America (IANA), an organization dedicated to promoting efficient freight transportation through innovation, education, and dialogue, CITT Research Assistant Jeremy Stumpp of California State University, Long Beach, examined the role that blockchain technology can play in improving supply chain fidelity.

Blockchain is a decentralized digital ledger that allows users to record information in a secure manner. In traditional websites where information is held, the website (such as a social media or online banking site) will store secure information such as passwords, usernames, and other personal information on centralized servers. This creates vulnerabilities to crashes, hacks, and data theft. In blockchain, the information is distributed across a network of users (onto each block of users), making it much more difficult to hack and steal the secure information. Furthermore, once a piece of data is written into the blockchain, it cannot be removed, making it much more resilient against fraud attempts. Blockchain technology holds a significant amount of potential within the supply chain as a way to track goods and movement and related transactions.

In the whitepaper, Stumpp outlines ways blockchain could revolutionize the supply chain. He cites case studies such as the use of blockchain in the olive oil industry, which has enabled consumers to better track the veracity of olive oil production sites and quality of the products. Similarly, blockchain is now being used in the seafood industry as well, with fishermen and seafood handlers recording the process at every step of the way, creating greater transparency and accuracy in the supply chain. Abrupt changes in the supply chain due to the COVID-19 pandemic have placed a strain on the process. Stumpp notes that the transparency and efficiency that blockchain provides to the system could help the public regain trust in the supply chain and improve the functioning of the system overall.

IANA supports CITT in its organizational goals of promoting research and education in trade and transportation. IANA funds scholarships developed by CITT to provide funding for non-credit professional programs, which typically do not qualify for financial aid. A portion of the funding they provide also goes to support student research into intermodal freight transportation, which this year went to Stumpp for this project on blockchain uses in the supply chain. This funding provides critical opportunities for CSULB students to gain professional and academic skills and incentivizes the professional development of CSULB students interested in freight and transportation.

Blockchain is still a very new technology and not fully understood by many in the supply chain and logistics industry. However, the potential cost-saving benefits, increased efficiency, and greater transparency offered by the incorporation of blockchain technology have made it an increasingly attractive option for industry leaders.