EURO 2024 Copenhagen
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3423. Exploring Blockchain Implications in Closed-Loop Supply Chains

Invited abstract in session WC-23: New technology for sustainable supply chains, stream Circular Economy, Remanufacturing and Recycling .

Wednesday, 12:30-14:00
Room: 82 (building: 116)

Authors (first author is the speaker)

1. Hamed Jalali
Department of information systems, supply chain management, and decision making, NEOMA Business school
2. Behzad Maleki Vishkaei
Bocconi university
3. Pietro De Giovanni
Bocconi

Abstract

In the realm of supply chain dynamics, the influence of Blockchain technology has been extensively explored within the forward channel, yet its repercussions on reverse logistics and closed-loop supply chains (CLSC) remain understudied. For instance, Wipro, a prominent multi-billion-dollar technology company, actively employs Blockchain technology to combat counterfeiting challenges within the realm of product returns. This paper addresses this gap by delving into the implications of Blockchain adoption in CLSC.

Focusing on the interplay between a manufacturer and a retailer, our study formulates a Stackelberg game wherein the manufacturer seeks to deploy Blockchain technology to enhance the accuracy of valuing end-of-life returned products. However, this adoption comes with a nuanced challenge—potential customer concerns about privacy and data collection within Blockchain, which can adversely affect the retailer by dampening customer demand.

Moreover, the manufacturer faces a choice between internally managing the collection of used products or outsourcing this task to the retailer. Through analysis of equilibrium strategies, we offer novel insights that contribute to a more comprehensive understanding of the multifaceted consequences of Blockchain integration in closed-loop supply chain dynamics.

Keywords

Status: accepted


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