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Top1. Introduction
Over the last many years, organizations have embraced various information and communication technology (ICT) in their supply chains mainly because of the flexibility, security, efficiency, real-time processing, scalability, and cost savings provided by it. ICT revolutionized the supply chain and its contribution is significant. ICT has often been recognized as an important resource that can provide distinctive capabilities for a firm and its supply chain (Wu et al., 2006). The ICT resources facilitate the creation of firm-level and supply chain level capabilities, which thereby create differential returns based on their unique value and inimitability (Zhang et al., 2011).
The use of ICT in supply chain processes plays a key role in developing supply chain capabilities (Prajogo & Olhager, 2012). In the recent past, organizations have witnessed a new set of ICTs - AI (artificial intelligence), Cloud, RPA (robotic process automation), 3D (three-dimensional) printing, IoT (internet of things), and blockchain. Globalization and amplified competition among retail supply chains have magnified the importance of effective SCM for which technologies such as IoT, Big data, and blockchain are offered as an inevitable prescription for the successful performance of retailers. Blockchain-based applications are considered one of the most significant breakthroughs in recent times due to their process efficiencies, transparency, and security features (PWC, 2017). Blockchain is considered the most trending technology that may significantly impact businesses across the globe. Blockchain technology promises to streamline deficiencies of inter-and intra-organizational business processes by making them immutable, decentralized, secure, transparent, and operational-efficient (Falazi et al, 2019). In this context, research on the deployment of blockchain technology in supply chains has gained traction (Cottrill, 2018; Kshetri, 2018).
In the light of the above backdrop, the research seeks to explore the deployment of blockchain technology and extends its applications to retail supply chain operations. Research also provides various frameworks for synthesizing and determining value creation processes in retail supply chain operations on blockchain deployment. In the course of the analysis the following research questions are being addressed:
- 1.
What are the impacts of blockchain deployment in retail supply chains?
- 2.
How does blockchain deployment in retail supply chains, transforms traditional retail supply chains to build and sustain competitive advantages?
- 3.
What are the issues inherent with blockchain deployment in supply chains?
Top2. Literature Review
Retail is the largest private-sector employer driving the U.S. economy, supporting one in four U.S. jobs as 42 million Americans are working in the retail sector. The retail sales during the year 2019 were more than $3.76 trillion and contribute $2.6 trillion to the annual U.S. GDP (www.nrf.com). Retailers are an essential part of the supply chain (Fleisch & Tellkamp, 2005) because of their proximity to customers (Wang & Liu, 2007). Retailers, usually face significantly more partners in the supply chain as a major retailer could have hundreds or thousands of vendors to supply its products compared to a much more controllable number for the manufacturers. During the past few years, retail supply chains have become complex because many firms in the chain rely on outsourcing their various processes or activities to other firms and/or setting up their production facilities in low-cost regions. The size of the supply and customer base, the length of the supply chain tiers, information technology invested by supply chain members, and communication styles among members of the supply chain defines the complexity of the retail supply chain. A large-scale retailer uses several brands and suppliers for the same product category while it sources inventories from many suppliers (Agrawal & Smith, 2015).