Food can become unsafe or contaminated at any point from farm to fork. Customers and stakeholders are concerned about food safety and prompt delivery. Hence, there is a need for a visible food supply chain (FSC), which can be accomplished through innovative technologies. However, these technologies are expensive and take a long time to implement. Hence, operational efficiency, which constitutes cost and time, has also become a priority for the parties involved in the FSC. However, in the current FSC scenario, there is a limited option for tracking the provenance of a food product. Cutting-edge technologies can make this possible because it is challenging to create a visible supply chain manually. Blockchain is such a technology that helps in visibility.
This study employs a multi-faceted approach. Firstly, a mathematical model is developed to assess blockchain’s impact on FSC visibility and operational efficiency. This compares the conventional supply chain with the blockchain-based supply chain and identifies the conditions favouring blockchain profitability and determines the optimal number of transactions. Secondly, a framework is proposed for an Australian milk supply chain where blockchain is integrated with the Internet of Things and cloud to enhance visibility with reduced cost in an Australian milk supply chain. Design science research methodology is used for this. A cost and visibility analysis are performed, which demonstrates blockchain’s long-term profit enhancement and its positive correlation with visibility. Thirdly, a case study is performed on a dairy supply chain (DSC) in Gippsland, Australia. Vehicle routing optimization in a conventional DSC is compared with that of a blockchain-based DSC.
The findings indicate that implementing blockchain will be profitable when the transaction cost in conventional cases is high and the cost of adding transactions to blockchain is less. Another finding is that implementing blockchain will yield a substantial return on investment. It has also been found that integrating IoT and cloud with blockchain is a more advantageous and profitable approach than solely implementing blockchain alone.
The proposed work motivates the supply chain entities to implement blockchain in their supply chain, resulting in improved trust and coordination among entities and consumers. The blockchain implementation leads to a greater competitive advantage in the field of FSC. Customers will also be willing to spend a higher price for the products due to additional benefits.