Blockchain Adoption in Supply Chain Management: A Multi-Criteria Decision Analysis
DOI:
https://doi.org/10.64235/yhuh5y5Keywords:
Blockchain adoption, supply chain management, multi-criteria decision analysis, TOPSIS, AHP, sensitivity analysisAbstract
Firms considering blockchain for their supply chains face a decision with several alternatives and conflicting criteria: traceability and data integrity argue for distributed ledgers, while cost, integration effort and partner readiness argue against them, and non-blockchain traceability platforms offer a middle path. This paper structures the decision as a multi-criteria decision analysis (MCDA). Four alternatives, the status quo of ERP and electronic data interchange, a permissioned blockchain consortium, public blockchain anchoring and a cloud traceability platform without blockchain, are evaluated on six criteria, traceability, cost, integration effort, scalability, partner readiness and data privacy, using TOPSIS with weights elicited in an AHP-style procedure. Under baseline weights that place 30% on traceability, the permissioned consortium ranks first with a closeness coefficient of 0.72, ahead of public anchoring (0.64), the cloud platform (0.53) and the status quo (0.33). Sensitivity analysis over the traceability weight shows that the consortium remains first across the range from 0.1 to 0.5, with public anchoring overtaking the cloud platform only above 0.2, and Monte Carlo sampling of weights ranks the consortium first in 90% of draws. The paper discusses what the analysis reveals about when blockchain is warranted, how the criteria should be scored from evidence rather than vendor claims, and how the method supports consortium decision-making in which partners hold different weights.
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