Integration of Blockchain Technology in Supply Chain Management for Increased Transparency

Supply chains today face critical challenges in ensuring transparency, traceability, and trust among distributed stakeholders. This study investigates the integration of blockchain technology into supply chain management (SCM) to enhance transparency and reduce inefficiencies. We conducted a systematic literature review of blockchain-based SCM solutions up to 2022, developed a conceptual framework for integration, and implemented a prototype on Hyperledger Fabric (v1.4) and the Ethereum (Rinkeby) testnet. Performance metrics—throughput, latency, and transaction cost—were measured under varying loads. Additionally, a stakeholder survey (n = 20) assessed perceived improvements in transparency and trust. Results indicate that permissioned architectures (Hyperledger Fabric) achieved higher throughput (up to 350 TPS) and lower latency (average 250 ms) compared to permissionless networks (Ethereum: 15 TPS, 1.5 s latency). Survey responses revealed a 30% increase in perceived auditability and a 25% reduction in dispute resolution time. Key challenges include scalability limits, data privacy concerns, and governance models. Our findings demonstrate that blockchain integration can materially improve SCM transparency, though real‑world adoption requires addressing performance, interoperability, and regulatory compliance issues. Beyond these core findings, this research contributes novel insights into the alignment of blockchain architectural choices with specific supply chain stages—procurement, manufacturing, distribution, and after‑sales service. We elaborate on transaction orchestration patterns that minimize cross‑organizational data leakage while preserving audit trails. To address GDPR‑style privacy requirements, we explore hybrid on‑chain/off‑chain data storage strategies and selective encryption of sensitive fields. Furthermore, our extended prototype analysis examines the trade‑off between consensus finality and operational throughput, demonstrating that tuning endorsement policies can yield up to a 15% improvement in Fabric network performance without compromising security. We also integrate a permission‑level registry service to manage stakeholder access, highlighting how dynamic membership models impact governance overhead. Finally, we discuss implications for regulatory compliance, proposing a framework for periodic smart contract audits and real‑time compliance reporting. Collectively, these extensions reinforce the viability of blockchain‑enabled SCM as a transformative approach for industries requiring high degrees of transparency and accountability.