Robotics and Computer Integrated Manufacturing 63 (2020) 101909

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Robotics and Computer Integrated Manufacturing

journal homepage: www.elsevier.com/locate/rcim

Full length Article

Real-time supply chain—A blockchain architecture for project deliveries T

⁎
Petri Helo , A.H.M. Shamsuzzoha
University of Vaasa, Networked Value Systems, School of Technology and Innovations, PO Box 700, FI-65101 Vaasa, Finland

A R T I C LE I N FO A B S T R A C T

Keywords: Real-time tracking and tracing are important in providing a unified view of global supply chains consisting of
Supply chain management several parties. This paper illustrates the needs and requirements for managing supply chains in multi-company
Real-time project environments by adopting various tracking and tracing technologies. This kind of tracking and tracing is
Blockchain especially needed within distributed architectures engaged in project-based businesses, where several vendors
Key performance indicators
are involved in a single project. Such tracking and tracing data can be used extensively to generate key per-
formance indicators, which can be used to measure and control supply chain processes. This paper also proposes
a pilot system of a cloud-based portal for real-time tracking and tracing of logistics and supply chains. This portal
is formed by the combination of RFID, IoT and blockchain technology into an integrated real-time view. RFID
(Radio Frequency Identification) and IoT (Internet of Things) provides real-time information or data, while
blockchain technology is used to provide a chain of immutable transactions. The architecture of the proposed
portal system is connected to transport companies, tracking devices, consolidation points and suppliers. The pilot
study also illustrates the benefits and advantages of such a portal system.

1. Introduction the identification of items, and as such do not directly define any
connection to real-time tracking systems. The complexity of project-
Global industries are facing problems in building a trusted real-time based supply chains in global industry has produced an increasing in-
view of their supply networks [1]. This is a challenge for project-based terest in improving their manageability [3]. Due to the diversity of
businesses, where tracking and tracing in their logistics supply net- product variants, together with the necessity to improve product tra-
works depends on several vendors, transportation companies and dis- ceability, a lot of information about the items is needed.
tribution centers, some of them infrequent or even one-timers [2,3]. In practice, there are several tracking systems available through GPS
Supply and logistics chain are nowadays critical to support the en- (Global Positioning System), GTIN (Global Trade Item Number) [9],
tire life-cycle of the extended manufacturing enterprise [4]. Tracking RFID (Radio Frequency Identification) [10,11], and barcode variants.
systems are used to identify the last known position of the shipment and However, many of these systems are partial solutions and do not pro-
inform the next actor or the received in advance [5,6]. These systems vide a unified architecture. Many existing tracking systems are not able
are widely used by large shipping companies, but for distributed in- for example to identify the contents within a container which has been
dustries such as project-based businesses, e.g., machine building, con- opened or where the contents are lost or stolen, etc. In order to tackle
struction, shipyards, managing a large number of connected shipments such misalignments in the logistics channel, state-of-the art technolo-
has not been possible. Without a reliable tracking system, it is almost gies, including IoT (Internet of Things) [12,13], Industrial Internet
impossible to find delivered items and often items considered as lost or Platform [14] and trackers [15] are needed to be developed for sus-
stolen. The information is needed by project managers to maintain real- tainable production processes. These tools are needed to be cost effec-
time visibility of the flow from the production process to transportation tive and at the same time provide the needed data or information.
and material management. In order to maintain the authenticity and security of such data,
The demand for tracking and tracing of items in supply networks blockchain technology can be integrated with such tools. Blockchain
has been recognized by several industries [7,8]. The academic com- technology provides the necessary data authenticity and security in the
munity along with standardization organizations is also actively making logistics channels in immutable transactions. Before proceeding to-
efforts to develop global identification methods for items and products. wards real-time tracking and tracing technology [16], it is crucial to
The standard procedures developed so far are mainly concerned with analyze its possible cause and effects. The overall performance of the

⁎
Corresponding author.
E-mail addresses: phelo@uva.fi (P. Helo), ahm.shamsuzzoha@uva.fi (A.H.M. Shamsuzzoha).

https://doi.org/10.1016/j.rcim.2019.101909
Received 31 December 2018; Received in revised form 17 November 2019; Accepted 18 November 2019
0736-5845/ © 2019 Elsevier Ltd. All rights reserved.
P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

tracking technology supports successful project delivery. Based on the 2.2. Blockchain technology in the supply chain
above requirements, this research study identifies the following three
objectives: In recent days, blockchain has been receiving more attention in a
variety of industries, which range from the financial sector to health-
(1) to identify both the functional and non-functional requirements of care, to, utilities to the government sector. The reason for this attention
logistics in project business; is that applications in these industries are worked only through a
(2) to introduce a framework for supply chain performance measure- trusted intermediary [23]. By adopting blockchain it is possible for
ment based on decision time horizon and data aggregation matrix; these industries to operate in a decentralized way, without the need for
(3) to develop a portal system by integrating RFID, IoT and blockchain a verification system, but achieving the same amount of reliability. In
technologies for logistics tracking and tracing in project business. addition, the use of cryptography in blockchain ensures information
security [24]. If offers a large accounting ledger to record all transac-
The remainder of this paper is organized as follows: Section 2 in- tions made by users.
troduces the background and related works on this problem. The re- Blockchain supports distributed peer-to-peer network architecture
quirements of the project logistics context are outlined in Section 3, to improve security and scalability in manufacturing [25]. In addition,
while Section 4 illustrates the method, and then Section 5 demonstrates the integration of blockchain technology with agent technology guar-
the proposed system and key-performance indicators. The requirements antees data reliability and provides accurate front-line resource ex-
are collected from a case company, and a proposed architecture to fulfil ecution for different stakeholders [26]. This technology works as a
these needs is presented. Finally, the conclusions section shows how distributed digital ledger system which ensures the transparency, tra-
real-time data can be used in managing the supply chain. ceability and authenticity of information, along with smart contractual
relationships within global supply chain networks. It is basically a
disruptive technology for the design, organization, operation and gen-
2. Related work eral management of supply chains [27].
Blockchain technologies [28] provide promising possibilities to
2.1. Project logistics build distributed supply chain transaction records [29–33]. Generally,
blockchain is understood as an immutable digital ledger of records,
Project-based businesses such as construction, shipbuilding, power which has been organized in data blocks connecting to each other.
plants and machinery often operate in global multi-factory environ- Blockchains are secure due to decentralized cryptographically secure
ments [2]. Customer sites are located far from production plants; ma- transaction mechanisms provided by decentralized computer networks
terials are shipped from suppliers directly to customer sites or via operating together for block creation and verification processes [28].
consolidation points. Supplier networks may change from project to Applications of blockchain in the supply chain ensure the secure storage
project as the scope of supply or local content requirements vary [17]. of all transaction information. By incorporating blockchain, shipments
Key performance indicators related to the supply chain support the can be tracked, the origin and destinations authenticated, and proof of
project overall success. Contracts may have heavy penalties for late all transactions can be stored and not manipulated [26].
project delivery and this is stressed throughout the supplying network With respect to the security point of view, blockchain is considered
during the execution phase. the most prominent technology [34–37]. Although the application of
Large construction projects logistics have a large number of ship- blockchain technology in the supply chain and logistics is still at its
ments consisting of several deliveries, each with schedule dependency initial phases, this technology can surely be remodeled and im-
on some work phase. For example, engine and propulsion related de- plemented in the supply and logistics sector [36,38,39]. This tech-
liveries for a cargo shipbuilding project may include hundreds of con- nology is being implemented in more widely than others, starting from
tainer boxes, which need to be installed during the exact phase of the open manufacturing [25] and real estate in order to ensure fraud pre-
overall shipbuilding project. For such a project, hundreds of suppliers vention [40] to clinical trials [41] and entrepreneurship innovation
may be involved, with each part being crucial for installation and [35]. When adopting blockchain, supply chain managers are able to
commissioning. Dispersed data storage and a variety of data sources have safer, more transparent, traceable and efficient virtual transac-
give the possibility to use big data to produce up-to-date performance tions of their operational processes [34,36]. The overall implementa-
information along the network. tion of blockchain in global supply networks can be summarized as
A technological solution for supply chain data collection is to build a presented in Table 1.
system which collects supply chain information from suppliers, trans- The most well-known applications of blockchain are related to
port companies, consolidating warehouses and customer delivery cryptocurrencies, but increasingly also in digital asset management.
(Fig. 1). GS1 SSCC type of standardized labeling [18] should bring Trade-processing and settlement is an obvious continuation of pay-
unified identification for multi-actor systems, and tracking devices may ments. As data immutability is verifiable, this may be used for signing
be used for expensive and sensitive key component deliveries. The data transactions or verifying the authenticity of an item, contract or right to
is collected and stored on a centralized database system, which links use. These features are looked at especially in government registers and
connections between data elements (Fig. 2). medical industries [52]. Industrial uses reported in the literature in-
In the case of synchronized production and logistics (SPL), the clude open manufacturing environments [53], IoT connectivity [54],
processing, moving and storing of raw material, WIP and finished origin authenticity [55] and product safety [56].
product in a manufacturing unit demand operational level integration The possible advantages of blockchain systems are:
and need a high level of information sharing to improve overall per-
formance [19]. In order to maintain agility and synchronization in (1) Decentralized management of the system as all participants share
supply chains and to promote the collaborative management of supply the need for immutable data and transparency of the process [29];
chain disturbances, it is necessary to exchange information promptly (2) The data can include transaction data on a high level or detailed
throughout the supply chain [20]. To improve overall reliability be- documentation related to products, custom processes or release of
tween demand and supply, a joint effort between different functional payments;
units such as logistics, marketing, sales and executive management on (3) Improved trust through increased supply chain visibility and fraud
the one hand, and between different business units on the other, is detection [29];
necessary [21,22]. (4) A shared and scalable network providing a basis for mutual interest
[32].

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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 1. Supply chain transactions in multi-vendor project logistics (source: authors).

This digital technology is leveraging new relationship models the logistics and supply chain network. Previous supply chain im-
through the entire supply chain network and transforming and re- plementations have been targeted for generic purpose shipping or
modeling the relationships between all members of logistics and supply consumer goods types of items. The novelty of the approach presented
chain systems [56]. Although the application of blockchain has gained in this paper is that special consideration is given to requirements of
in relative pace over various segments in recent years, its application in project logistics. The contribution is the demonstration how in practice
logistics and supply chains has not yielded sufficient research cases. logistics data originating from various dispersed sources and integrated
This research study therefore tries to fill this research gap, notably into a real-time view. More specifically, a blockchain-based archi-
by helping to understand individual blockchain adoption behavior in tecture is proposed, which is supported by RFID, IoT and Cloud-based

Fig. 2. Data model for project logistics (source: authors).

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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Table 1
Application of blockchain in global supply networks.
No. Author(s) Industry segment/area Contributions

1 Tse et al. [42] Food supply chain Blockchain technology is applied to manage and track information in the food supply chain. It monitors and
audits the food supply chain to record and authenticate the transactions.
2 Madhwal and Panfilov Aviation supply chain Application of blockchain assists in maintaining inventory of aircraft parts and to monitor performance with
[43] the objective of reducing the risk of parts coming from the black market.
3 Badzar [44] Transportation and logistics Blockchain in logistics increases supply chain transparency and improves contractual coordination in
transportation contracts and improves overall service management within companies.
4 Tian [45] Agri-food supply chain Both RFID and blockchain technology are utilized to effect traceability with trusted information in the entire
agri-food supply chain and to guarantee food safety through sharing authentic data of agri-food in production,
processing, warehousing, distribution and selling links.
5 Korpela et al. [46] Digital supply chain Integration between Cloud database and blockchain technology is proposed to establish an interoperable
digital supply chain to achieve disruptive transformation of information/data for various organizations and
systems.
6 Kshetri [36] Multi-case study IoT and blockchain-based solutions are deployed with the objective of fulfilling supply chain requirements
such as cost reduction, improving quality, higher speed, less dependability, risk reduction, improving
sustainability and flexibility, and increasing transparency and accountability.
7 Bocek et al. [47] Pharmaceutical supply-chain Integration of IoT and blockchain is performed in order to assert data immutability and public accessibility of
temperature and humidity records of the medicines in the pharmaceutical supply-chain with reduced
operational costs.
8 Leng et al. [48] Agricultural supply chain A public blockchain is implemented to the agricultural supply chain system to study the dual chain structure
and take into account the security of transaction information and the privacy of the enterprise information
system.
9 Lee and Pilkington [49] Consumer electronics industry The study analyzes the overall impact of blockchain technology on the supply chain management of the
consumer electronics industry with the aim of making this industrial segment a more transparent, safer, and
more honest place.
10 Sivula et al. [50] Construction industry This research study highlights the opportunities of blockchain technology in the logistics chain of the
construction industry. A case example is illustrated to provide extended customer value, transparency and an
enhanced service network in the construction industry.
11 Casado-Vara et al. [23] Consumer industry supply chain Supply chain management through the blockchain model is proposed to enable the concept of a circular
economy and to coordinate all the transactions that take place in the supply chain.
12 Rico et al. [51] Megacity supply chain Blockchain technology is used to support the search and negotiation phase of a logistics contract. A detailed
data architecture and incentive structure of decentralized retailer-logistics are also implemented through
blockchain technology.

data security and tracking systems. This framework supports increased may be analyzed by seeing related supplier on-time delivery perfor-
traceability and transparency in logistics and supply chain networks. mance, common parameters such as project types, or customer loca-
tions.
Performance measurement is typically periodically operated based
2.3. Performance measurement on aggregated snapshots. Monthly or weekly reports are performed on
predefined organizational units (sourcing channel, factories and busi-
The performance measurement revolution has been under discus- ness areas). The tools of big data are targeted for analyzing streams of
sion for a long time. Neely [57] claimed that several internal and ex- data and making decisions in a time-scale which is not predefined by
ternal pressures together with enabling information technology have reporting periods. Ad hoc analyzes and testing hypotheses for decision-
been driving the trends and changing the focus from purely financial making are examples of short-term actions.
metrics toward operations [58]. Performance measurement frameworks Some examples of how to use real-time data streams for supply
are changing from periodic management review toward operational chain decision-making include the following:
tools. According to Bititchi et al. [59], performance measurement is also
challenged by the turbulence of the environment, the demand for sus- - Route planning for trucks in real-time;
tainability measurements, increased share of services compared to - Quality management by analyzing customer feedback and delivery
physical distribution, and the need to acknowledge the network beyond issues on-line;
the enterprise. The widely used Supply Chain Operations Reference - Profitability analysis for trucks, routes and stock-keeping units;
model (SCOR) combines business process mapping methods with per- - Order patterns and customer behavior over time;
formance metrics. According to Estampe et al. [60], companies refer to - Risk management analysis based on orders and current status of
several models in the performance evaluation process. deliveries.
Performance measurement systems are also changing the focus from
control of the system to learning from the system [57]. This means that In terms of period, data is generated in several layers. Fig. 3 shows
performance systems are not built for periodic repeatable management time-layers and data element examples for each. Typically, companies
decisions but as an enabling knowledge base for ad hoc questions and use aggregated metrics on a monthly or weekly level. These key per-
decisions. An important long-term trend is the transition from perfor- formance indicators are linked to the strategic goals of supply chains,
mance measurement to performance management [58]. The maturity of certain levels of lead-time, on-time delivery performance or costs. A
the performance management system is evaluated by its capability to more precise level is the daily level, which is typically supported by
deliver value [61,62]. The value creating capability of the system is Enterprise Resource Planning (ERP) systems and operational logistics
connected to the use of big data in performance measurement and information systems such as Warehouse Management Systems (WMS)
management. and Transportation Management Systems (TMS). This means informa-
Real time supply chain application can enable new aspects for tion on the level of hours. Not all companies use key performance in-
performance measurement. The root causes of high-level performance dicators at this level, as it requires operational level IT systems on the
indicators, trends or patterns may be analyzed by analyzing smaller shop floor and truck fleets. The most detailed level of performance data
entities. For example, the on-time delivery performance of a company

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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 3. Levels of period in performance analysis.

comes from machines, where each transportation package or truck may managers and purchasing managers of a machine building company
be tracked several times in a minute, and vibration, shock or other working with shipyards and marine projects.
sensory measurements are processed.
4.1. Functional requirements
3. Research method
The main functional requirement was to create a framework to fa-
This research is based on a case study approach along with an ex- cilitate the creation and use of tracking data in non-centralized supply
tensive literature survey to fulfil the predefined research objectives. The chain networks.
case study was suitable for exploring supply networks within a project- Client
based company engaged in the energy business in Finland. The neces-
sary data collection process was designed to address the research ob- • The purpose of the client application is to provide a secure, non-
jectives. Data were collected from the case company, represented by centralized way to create package tracking information.
executives, business managers and IT experts in the field of supply • The tracking number should be linked to transaction events in the
chain and logistics, product designers and engineers, and project supply chain using a safe method.
managers. From the collected data, various requirements, both func- • The reference number can be input manually or by using barcode or
tional and non-functional, were identified. This kind of exploratory RFID tags.
research method was applied to provide a proof of concept of com- • Up-to-date information can be retrieved by using the reference
bining several promising technologies to deliver a real-time project number.
view. Software design and engineering techniques were applied to • A decentralized data system for the creation of tracking data is en-
implement and integrate the elements. abled.
Proof of concept developed during the implementation project was
not based on simulation or mathematical model but tested on actual Integration
project logistics environment. In order to facilitate the case company's
logistics and supply chain with real-time status updates, an online • The tracking numbers generated can be linked to external data such
portal was developed. This portal is operated by the Cloud and in- as purchase order number, shipment number or sales order number.
tegrates various technologies such as RFID, IoT, GPS and blockchain. • External data sources can be integrated as transaction event sources
Various data related to the case company's supply chain such as cus- such as transportation company provided APIs by using standar-
tomers, projects, shipments, deliveries, handling units, etc., are popu- dized methods.
lated on this portal. From this portal, supply chain stakeholders are able • External IoT tracking devices or a link to real-time data streams
to visualize relevant tracking and tracing data of their shipped items. should be provided.
Technologies such as RFID, bar code and IoT provide data as received
from various sensors attached to the delivery items, while blockchain Portal
technology ensures authenticated and secured data transactions be-
tween supply chain stakeholders. • Collects data from decentralized supply chain transaction data and
links it to a centralized searchable data storage.
4. Requirements for project logistics • Provides a search view for multiple views: project shipments,
tracking numbers, purchase orders, project name.
The purpose was to collect realistic requirements from a project- • Connects supply chain key performance metrics in the data view.
based company for the actual implementation of real-time supply chain
architecture. The functional and non-functional requirements were
analyzed by using interviews with the project managers, transport

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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 4. Average shipment durations for project logistics, collected from a machine building company.

4.2. Non-functional requirements 5. Proposed system

According to the analysis phase of the requirement collection, this A Real-Time Supply Chain architecture (RTSC) was developed to
planned real-time supply chain system should satisfy both the manu- implement the functionality of the decentralized project logistics. The
facturers and their suppliers within the project supply networks. Each main components in the implementation were (1) a blockchain com-
participant should have a view of the material flow. The planned system ponent providing a method to create and verify the authenticity of
should support an environment with features of: transactions from the supply chain, (2) RFID and barcode client for
transactions, (3) IoT and tracking device interface, (4) user interface on
• More than 5000 vendors using the system for the creation of ship- a cloud portal, and (5) key performance indicator view for supply chain
ment, some frequent suppliers and some one-timers; management. Each of the components of the RTSC is explained in the
• More than 100 projects running simultaneously; following sections.
• Average shipping time between 8 and 30 days between distribution
center and outbound project site location (Fig. 4);
• Project materials shipped in 1–4 shipments during the phase of the 5.1. Blockchain architecture
project;
• Each project having 50–200 material handling units (boxes, con- The architecture of the blockchain composed of blocks is presented
in Fig. 6, containing transaction information of the logistics items. Each
tainers), each container containing possibly hundreds of compo-
transaction in the logistics and supply chain, including the creation of a
nents (Fig. 5).
package, transportation order, confirmation of shipping time, pick-up
of goods, custom processing, or receiving goods, should be presented as
a block. Each of the blocks within the architecture is connected with
each other by hash. The preceding blocks are connected to each other in
the blockchain. This part is implemented by using Ethereum. Ethereum
is an open source platform for developing blockchain applications [63].
It is a generic purpose transaction-based state machine and has good
APIs for developers. The system is based on blockchain using an in-
trinsic digital token called “Ether”. “Ether” can be broken into smaller
units such as “Wei” (1E-18 Ethers). This token is needed to provide a
payment (also referred to as gas) for the network of computers pro-
viding the proof-of-work: the calculation of the hash to create and
verify the blocks. The payment of this fee is needed when using existing
networks. Another possibility would be to create a private network and
invite members who share the same supply chain related interest. In the
pilot, we used a public test network.
Ethereum Virtual Machine (EVM) within the blockchain archi-
tecture operates as a runtime environment for smart contracts. The
blockchain application (Tracker app) communicates with EVM and the
network and provides a limited set of methods such as InitiatPackage
and transferPackageOwnership (Fig. 6). These methods are implemented
in the Tracker App component and by calling the Ethereum node
Fig. 5. Package hierarchy linking product, inner pack, pallets, containers and component.
vessel/vehicle. Decentralized Application (DApp) as part of the blockchain

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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 6. Components of the blockchain architecture, which is an integral part of the developed software.

architecture is used to develop applications using front-end (HTML network of computers that run the blockchain [66]. The application of
+CSS+JS) webpage and back-end (Solidity Smart contract) program- smart contracts in a blockchain-based supply chain can help logistics
ming code. The communication with the back-end code , which includes companies to achieve real-time information exchange, money, prop-
the smart contracts, would be deployed as EVM bytecode in the erty, or anything of value in a secured, transparent, and conflict-free
blockchain. The interaction between the front-end code and the back- way, while avoiding the services of an intermediary [68]. This results in
end Ethereum client/blockchain was implemented by using web3.js reducing transaction time and costs in logistics companies.
over JSON RPC, as seen in Fig. 6. A simplified example how smart contracts are used in the pilot
Smart contracts as part of the Ethereum deployment block within implementation can be illustrated by a Solidity contract. Fig. 7 shows
the blockchain architecture can be defined as ‘a computerized trans- the key principles and Appendix 1 outlines the source code for contract.
action protocol that executes the terms of a contract’ [71]. According to Package object is introduced containing an id, current owner, address
Cong and He [64], smart contracts can be defined as follows: “smart and assigned ownership for the received. A new package identity is
contracts are digital contracts allowing terms contingent on decen- born with initiatePackage method where initiator becomes the current
tralized consensus that are tamper-proof and typically self-enforcing owner. Then current package handler can be transferred to next one in
through automated execution”. Smart contracts can increase contract- the chain by using method tranferPackageOwnership. This transaction
ibility and facilitate the exchange of various instances such as money, is the main contractual element. Other supporting methods in the
property, shares, service, or anything of value in an algorithmically contract are getPackageOwnershipHistory to see previous steps of the
automated and conflict-free way, while avoiding the services of an in- shipment and currentOwner to see who is handling the package at this
termediary [65]. Smart contracts as deployed on Ethereum offer secure point.
logistics management and can be applied to different scales with easy Sending and receiving organizations can use
adaptability in several logistics environments through immutable pro- transferPackageOwnership function in the smart contract to sign and
gram [65]. approve the delivery at each step. Smart contracts are used to monitor
In the supply chain network, one of the critical stages is to form a when approval signatures are required from both the sending and re-
contractual agreement between parties. Any dispute within the con- ceiving party. This allows decentralized handover and enables the use
tractual agreement that results from fraud, misunderstanding, and of automation in releasing letters of credits or insurance, for example.
performance failures may not only destroy the supply chain partnership Ethers support on smart contracts provides a flexible platform for use of
but also disrupt supply chain activities with a prolonged time for re- more complicated future scenarios, which are not yet known.
solution [66]. By implementing such smart contracts in logistics and
supply chain network this can resolve many of the problems arising. 5.2. RFID and barcode client for transactions
Smart contracts is a basically a computer protocol intended to facilitate,
verify, or enforce contractual obligations following necessary con- The users manually enter the basic logistics related transactions. For
tractual clauses such as rights, agreements, penalties, etc. [67]. The this purpose, mobile clients are using both web user interfaces and
adoption of smart contracts not only clarifies the contractual rules and native Android apps, which are implemented to help in creating new
penalties, but also enforces those rules and penalties automatically, shipments and changing the status of shipments. Each transaction is
which contributes to improving compliance, mitigating risk, and in- linked to:
creasing efficiencies across the enterprise [67].
Within smart contracts, predefined rules and regulations of a con- • generated label ID (barcode, QR code or RFID representation);
tractual agreement are converted to computer codes, which are then • user-id;
stored and replicated on the computer system and supervised by the • timestamp;
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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 7. Supply chain via blockchain and Solidity smart contract architecture.

• GPS location of the device; interface which do not need be verified. For fast access a local storage
needs to be used for clients, which requires some 500 MB capacity
Blockchain generation is done in the Ethereum network by using depending on the history length of valuable transactions. In case of
these elements, and a copy of the processed blockchain is stored on the logistics, the value of transactions may decrease to zero once packages
cloud portal, which is implemented on SalesForce. The generated label have been successfully received in their destinations.
id also works as an identifier used on the ERP system, where purchase The performance of the test network could be improved to some
orders are maintained. Fig. 8 displays the tracking system using mobile extent, although Ethereum based systems have a performance limit
user interfaces for tracker/HU functions. which keeps the number of new block creation in the range of tens per
From the performance point of view, use of Ethereum blockchain second. For this reason, safety critical creation and verification process
technology solves the problem of verification within a reasonable re- should be triggered as separate transactions which are processed in
sponse time. The test was not a simulation but instead we tested parallel. Forthcoming developments, such as Ethereum 2.0 may im-
transactions in Kovan test network provided by Ethereum. This test prove the situation significantly in the future.
setup would probably emulate a shared private network with geo-
graphically distributed multiple users. 5.3. IoT tracking devices
During the pilot tests, Kovan testnet work was used to for block-
chain transactions. Kovan is a testnet for Ethereum applications using In addition to manual entry of transaction changes, external data
Parity's Proof of Authority consensus engine. Ether mainnet has some sources are supported by using an interface, which receives transaction
7000 nodes running transactions, but during out tests Kovan network data from IoT tracking devices and transportation companies providing
had significantly lower number of active nodes, probably only 10 vehicle information on-line. In addition, external data source type of
nodes. messages are signed by using Ethereum and linked with a label iden-
The processing time for generation of a new block in Kovan network tifier.
is 4 s (block time), but it does not require paying fees for transaction
processing. The server-side storage for each independent node running • Truck IoT—transport companies transmit case status changes via
a full Ethereum node is currently 120 GB in light mode and 3.1 TB in text files in the UN EDIFACT standard format to notify about
full node mode. In practice creation of a new block and verification of transportation changes. EDI status messages can contain an http-link
existing blocks can take between 15 and 30 s depending on network for vehicle level positioning tracking data (Fig. 9).
situation. • Tracking devices—for larger and more expensive goods, battery
These performance figures show that blockchain does not solve the operated trackers can be used to provide telemetric information on
need for fast data queries. A suggestion for architecture from this ex- cargo status and ambient environment (temperature, humidity, vi-
perience is that cache memory should be used in transactions for user bration and opening of the cargo handling unit).

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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 8. Tracking system mobile user interfaces for tracker/HU function.

tracking and tracing in the supply chain. Recent developments of vi-

sualization components, and the use of geographical information sys-
tems and cartograms give new possibilities for data visualization. “War
rooms”, equipped with large displays and mobile management cockpits
for tablet computers can visualize a large quantity of data in a user-
friendly form for decision makers.
A cloud portal view was built on top of SalesForce platform
(Fig. 10). Data hierarchy to link customers, purchase orders, projects,
shipments, deliveries and handling unit level information is maintained
on a centralized level. The details tracking data, such as the exact
tracking history of a container or GPS tracking date, is stored here, as
well as a copy of each blockchain transaction.
Linking high-level objectives and respective performance attributes
with lower level performance metrics is the key item which an analy-
tical approach can bring to supply chain performance measurement.
Data are available as fresh streams and producing more detailed views
is possible and decision-making can be accelerated.

5.5. Key performance indicators and managerial use cases

Fig. 9. EDI status message example from an external data source.
Key performance indicators for project business are typically ana-

• Automatic Identification System (AIS) data—can be polled for sea

lyzed on an annual level for corporate level reporting and on a project
level for project execution purposes. Some typical metrics for this
vessels and linked with container numbers to label IDs. Automatic
project business include:
events can be triggered on arrival within the proximity of a geo-
fenced zone.
• Project logistics cost;
• Delivery time;
5.4. User interface on cloud portal
• Number of deliveries;
Data visualization is an important part of using real-time data
• On-time delivery;
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P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 10. Cloud portal providing a view of supply chain traceability.

• Percentage of perfect deliveries; Table 2

• Rush delivery costs. Solution functionality and link to key performance indicators.
Solution functionalities Performance attributes
Annual enterprise level figures depend a lot on ongoing project
volumes and the phase of each project. For this reason, a rolling time Overall supply chain objectives Supply chain reliability
horizon shows recent developments and trends faster. Enterprise figures • Perfect order fulfillment
Supply chain responsiveness
accumulate from independent projects directly. For project logistics
planning and execution, real-time data is important to make any ad- • Order fulfillment cycle time
Supply chain management cost
justments. When all projects and their status - either latest transaction
Participants
• Supply chain management cost
Project planning
event or actual location data - are known, they can be monitored in the
- Planned shipments
supply chain. An important aspect is to compare planned performance
- Purchase orders for suppliers
with the actual level. Based on experience and past data, algorithms Suppliers
may be built to identify potential risks and exceptional behavior in - Order confirmations
terms of suppliers, transportation companies, transport routes or cargo - Packing information
type (Table 2). - Delivery status information
Transport companies
The level of data aggregation and decision time horizon can be
- Status messages
presented in a quadrant (Fig. 11). Traditional high-level supply chain - Tracking locations
performance metrics are at the top part of the picture (1) What the big Observation points - Identify critical deliveries
data approach can bring is a detailed view combined with external - Monitor overall cost
Analysis dimensions - Project number
metrics. Tactical key performance measurement (2) and operational
- Subsystem
local metrics (3) on a daily and hourly level concentrating on shorter - Transport company
term decision making are in the diagonal of the axis. Pattern analysis - Supplier
(4) typically depends on short time range data accumulation and can be - Geographical area
used in short term and tactical decisions. Forecasting of demand be- Actions - Alternative transportation
- Change supplier
havior (5) is also in the same class, with the decision time horizon
- Replacing orders
probably on a weekly or monthly level. Data granulated to a monthly
level may be used for short-term operation decisions to check as-
sumptions and give alerts for exceptional behavior. determine real-time status information of the shipments. In addition to
The real life-applications from this pilot experience are expected to RFID technology, IoT is used in this decision aid model to provide on-
become standard features of logistics information systems in the future. line vehicle information of the transportation companies. It can also be
The presented blockchain-based design and management of production used to provide identification data for the sea vessels and linked with
system supported by RFID, IoT and Cloud portal ensures real-time in- container numbers to label IDs.
formation visibility to production system related stakeholders. This It is critical for logistics companies to visualize real-time data of
production system offers trusted and authenticated information transfer their shipments. To keep such an objective in mind, this developed
from one party to the next. In the case of supply chain and logistics system worked on a Cloud portal, which was built on the SalesForce
management, this novel approach offers real-time data tracking and platform. This portal provides data hierarchy that is maintained on a
tracing in the supply chain. The RFID technology used in this system centralized level and has links to customers, purchase orders, projects,
can be used to track supply and logistics items that also help to shipments and deliveries. Detailed tracking data of any shipment, such

10
P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

Fig. 11. Framework: decision time horizon and data aggregation matrix for SC performance measurement.

The real-time supply chain should not be considered a separate set of

novel analytics tool but rather a possibility to add resolution to an
existing structured approach.
Speed to derive actionable insights from the data is essential. The
operational use of supply chain performance measurement becomes
closer to an OODA loop – originally developed for the military [69].
Measurement is part of the Observe – Orient – Decide – Action loop. The
reference could be a fighter plane pilot observing the sky, seeing an-
other plane – focusing on that and still observing the surroundings, then
deciding and taking action in following the target. In the context of
supply chain management, top-level metrics are used to observe the
overall situation and interpret it by considering the current business
circumstances. When some external information or sudden change in
metrics occurs, the management may orient and investigate the next
levels of metrics for detailed analysis. Typically, in this stage, external
reporting dimensions are added – does this change occur only in certain
types of location, with certain suppliers, or on weekdays only? Hy-
potheses may be developed and tested with past data. Then it is time to
Fig. 12. OODA loop in performance measurement. decide what to do and implement action. Each part of loop provides
feed forward to the next phase, and feedback is received every time a
as the exact tracking history of a container or GPS tracking date is loop has been run (Fig. 12).
stored in this portal as well as a copy of each blockchain transaction. The main conclusion of this study is that the current IT and com-
The developed system can be used to measure the key performance munication infrastructure within suppliers, own delivery centers,
indicators for typical project business. Such key performance indicators warehouses, and transport companies enable development towards
are typically analyzed for business level reporting and on a project level real-time visibility in the supply chain. There is no single technology
for project execution purposes. The real-time data obtained from the rather than a combination of various systems and processes to support
developed portal is used to measure the overall performance of project the requirements. We believe that such system should include the fol-
logistics planning and execution. Based on the collected data (e.g., lo- lowing aspects:
gistics cost, lead-time, number and location of deliveries, number of
projects, etc.), an algorithm might be built to identify and forecast • A portal system to collect the information into a centralized location
potential risks and exceptional behavior of supply and logistics de- and provide the information based on request to all participants
liveries, optimal transportation routes, or cargo types. involved;
• An integration system for communication between transport com-
6. Conclusion panies by using standardized messaging platforms (EDI messages,
AIS satellite tracking for vessels, EDI/XML based web-service in-
Ultimately, what trusted real-time data does for supply chain per- tegrations, etc.) and connect these to the blockchain;
formance management is the acceleration of the decision-making loop. • A transaction monitoring system on each event during the logistics
The control mechanism from the performance metrics has remained chain by using RFID and bar code systems, using blockchain to sign
similar – the loop has accelerated, and the data provides a valuable these transactions and link each one to the chain;
source for learning the details and micro-mechanisms of the operations. • The use of IoT tracking devices for expensive goods;

11
P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

• Visualization of the supply chain within the portal by using maps Supervision, Resources, Writing - original draft. A.H.M. Shamsuzzoha:
and key performance indicator data. Investigation, Writing - review & editing.

Based on the experiences from piloting the RTSC system, such an

integrated system can be realized around existing technologies. Use of Declaration of Competing Interest
trusted immutable data can bring value to supply chain analytics and
performance measurement. Large quantities of data enable precision We wish to confirm that there are no known conflicts of interest
and the ability to see patterns in more detail below the aggregated associated with this publication and there has been no significant fi-
metrics. The velocity of the data streams make it possible to accelerate nancial support for this work that could have influenced its outcome.
the decision making speed. Combining data sources into reporting di- We confirm that the manuscript has been read and approved by all
mensions and triangulating observations from different data sources named authors and that there are no other persons who satisfied the
adds value for users. criteria for authorship but are not listed. We further confirm that the
The managerial implications from this study are the encouraging of order of authors listed in the manuscript has been approved by all of us.
project-based businesses to build their own supply chain portals and We confirm that we have given due consideration to the protection
integrate multiple data sources for building visibility and transparency. of intellectual property associated with this work and that there are no
Blockchain can be used towards a cloud manufacturing system to secure impediments to publication, including the timing of publication, with
data sharing in a peer-to-peer distributed network platform [70]. respect to intellectual property. In so doing we confirm that we have
Blockchain and smart contract technology implementations show good followed the regulations of our institutions concerning intellectual
potential for safety and security related transactions, but the actual property.
response rate for database related queries is too slow and local storage We further confirm that any aspect of the work covered in this
needs quite high. For this reason, the architecture should support par- manuscript that has involved either experimental animals or human
allel processing and use of local caches. patients has been conducted with the ethical approval of all relevant
Future research should focus on building standardization and larger bodies and that such approvals are acknowledged within the manu-
inter-operational pilots, where ERP and transport management systems script.
are integrated into a blockchain-based system of multiple parties. More
complicated smart contracts should be tested in the field of supply
chains based on good experience from the signing process. Acknowledgments

CRediT authorship contribution statement Duy Nguen, Bhuwan Karki, Mohamed Ismali and Yang Ruan con-
tributed to the software implementation of the RTSC system compo-
Petri Helo: Conceptualization, Methodology, Software, nents. Smart contract example is implementation of Anh Nguyen.

Supplementary materials

Supplementary material associated with this article can be found, in the online version, at doi:10.1016/j.rcim.2019.101909.

Appendix 1. Smart contract example

pragma solidity ^0.5.11;

contract PackageOwnership {
constructor() public {
}
struct Package {
uint id;
address packageOwner;
uint ownershipAssignedAt;
address[] packageOwnerArr;
uint[] ownershipAssignedAtArr;
bool exists;
}
mapping (uint => Package) internal packages;
function initiatePackage(uint _packageId) public {
address[] memory packageOwnerArr;
uint[] memory ownershipAssignedAtArr;
packages[_packageId] = Package(_packageId, msg.sender, now, packageOwnerArr, ownershipAssignedAtArr, true);
packages[_packageId].packageOwnerArr.push(msg.sender);
packages[_packageId].ownershipAssignedAtArr.push(now);
emit PackageInitiated(_packageId, msg.sender);
}
function transferPackageOwnership(uint _packageId, address _newOwner) public
isPackageOwner(_packageId)
differentOwner(_newOwner)
{
packages[_packageId].packageOwner = =_newOwner;
packages[_packageId].ownershipAssignedAt = =now;
packages[_packageId].packageOwnerArr.push(_newOwner);
packages[_packageId].ownershipAssignedAtArr.push(now);
emit PackageOwnershipTransferred(msg.sender, _newOwner);
}
function getPackageOwnershipHistory(uint _packageId) public view returns(uint[] memory, address[] memory) {
Package memory p = =packages[_packageId];

12
P. Helo and A.H.M. Shamsuzzoha Robotics and Computer Integrated Manufacturing 63 (2020) 101909

return (p.ownershipAssignedAtArr, p.packageOwnerArr);

}
function currentOwner(uint _packageId) public view returns(address) {
return packages[_packageId].packageOwner;
}
event PackageOwnershipTransferred(address indexed _oldOwner, address indexed _newOwner);
event PackageInitiated(uint indexed _packageId, address _owner);
modifier isPackageOwner(uint _packageId) {
require(packages[_packageId].packageOwner = =msg.sender, "Only the owner of this package can invoke.");
_;
}
modifier differentOwner(address _newOwner) {
require(msg.sender != _newOwner, "New owner's address must be different from current owner's.");
_;
}
}

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