Supply Chain Management using Blockchain
Shivani Bhalerao Siya Agarwal Shruthi Borkar Shruti Anekar
IT dept IT dept IT dept IT dept
RAIT RAIT RAIT RAIT
[email protected] [email protected] [email protected]
Mrs. Nikita Kulkarni
RAIT, Navi Mumbai
Abstract – To merge the digital and physical world, we
records the journey of dairy product from manufacturer
to consumer. Like the milk, IoT sensors can be attached to
any object entrusted to someone else for transport, wit h
trackable ownership, possession, and telemetry
parameters such as location, temperature, humidity,
motion, shock and tilt. The ?nal buyer can access a
complete record of information s and trust that the
information is accurate and complete.
Supply chain management today is a complex endeavor .
Regardless of how many Enterprise Resource Planning (ERP)
solutions, work?ow tools, digital shipment tracking devices or
other integrated monitoring solutions are deployed,
complexities, product losses and inaccurate data management
No longer the responsibility of one or m ultiple players, today’s
supply chain is riddled with multiple parties, multiple
checkpoints and across them all – a tangled web of processes
and the systems that need to properly integrate to function
The prevalence of inaccuracies, billing disputes, outright fraud
and corruption, means that the whole supply chain needs to be
properly audited by impartial third parties, and often.
However, imagine if t he entire supply chain could be managed
electronically from raw material phase up to customer
delivery, with no room for errors, and in such a way that many
time -consuming weigh and checkpoints were not required
anymore ? Imagine the speed at which a produc t could ?ow
from A to D. Blockchain technology is mostly known in the ?nancial sector;
its origins fused with those of cryptocurrencies that have relied
upon its transparency and unparalleled security to underpin
their success. Essentially, a decentralised
, distributed digital
ledger, the blockchain can be used to record transactions for
anything of a value across a system of computers in such a way
the no record can be changed retroactively without consensus
across the entire computer system.
In the ?nanci al sector, it is being explored and actively used to
conduct ?nancial transactions and even manage the contracts.
For the supply chain, the bene?ts supersede merely keeping
accurate records: radically reducing the excessive amount of
time spent on paperwor k and authorization. Currently, most of
the delays on any product or materials shipments are due to
these two requirements. On the blockchain, just a digital
signature is needed, and the accuracy and authenticity of the
digital paper trail is such that no time needs be wasted on
verifying previous records.
The aspects included while developing Hyperledger fabric:
1. Blockchain Architect: Responsible for the architecture and
design of the blockchain solution.
2. Blockchain User: The business user, operating in a business
network. This role interacts with the Blockchain with the help
of an application. They are not aware of the Blockchain.
3. Blockchain Regulator: The whole authority in a business
network. Speci ?cally, regulators may require broad access to
the ledger contents.
4. Blockchain Developer: The developer of applications and
smart contracts that interact with the Blockchain and are used
by Blockchain users.
5. Blockchain Operator: Manages and monitors the
Blockchain network. Each and every business in the network
has a Blockchain Network operator.
6. Membership Services: Manages the di?erent types of
certi?cates required to run a permissioned Blockchain.
7. Traditional Processing Platform: An existing computer
system which may be used by the Blockchain to augment
processing. This system may also need to initiate requests to
8. Traditional Data Coordinator: An existing data system
which may provide data to in?uence the behavior of smart
II. Proposed System
Our system is a permissioned blockchain network that gets set
by the organizations that intends to setup a consortium. The
organizations that take part in building the Hyperledger Fabric
network are called as the “members”.
Each member organization in the blockchain network is
responsible to setup the peers for participating in the network.
All of these peers need are con?gured with appropriate
cryptographic materials like Certi?cate Authority and various
Gi ven the task of providing a supply chain system that would
connect many small businesses we want to minimize the need
for expensive infrastructure, and since the target sector was
dairy products we also wanted to provide a system that would
be easy to lear n and use for non- technical people.
Consequently we have decided to make the system available
via a mobile app due to the ubiquity of mobile devices and
peoples familiarity with them. We used react -native to build
the app so that we could target both Android and iOS in a
single app, and also have the option of turning it into a desktop
web -app with minimal adjustments. For the server- side
blockchain implementation we have chosen Hyperledger
Composer. Its user friendly GUI, allowed us to dive in and get
started straight away, and its modeling language mapped well
to our problem domain.
Softwares used are:
1. Hyperledger Fabric : It is a blockchain framework
implementation and one of the Hyperledger projects hosted by
The Linux Foundation. Intended as a fou ndation for
developing solution with a modular architecture, Hyperledger
Fabric allows components, like consensus and membership
services, to be plug -and -play. Hyperledger Fabric leverages
container technology to host smart contracts called (chain -codes)
that comprise the application logic of the system.
Hyperledger Fabric was initially contributed by Digital Asset
and IBM, in the ?rst hackathon.
2. Hyperledger Composer : Hyperledger Composer is a set of
collaboration tools for building blockchain business networks
that make it simple and fast for business owners and
developers to create smart contracts and blockchain
leveraging modern tools including node.js, NPM , CLI and
popular editors, Compos er o?ers business-centric abstractions
as well as sample apps with easy to test dev -ops processes to
create robust blockchain solutions that drive alignment across
business requirements with the technical development.
3. Docker : Docker is a computer progra m which performs
operating -system -level virtualization, also known as
“containerization”. It was ?rst released in 2013 and it is
developed by Docker, Inc. It is used to run software packages
4. Loopback: In telecommunications, loopback is a method
used to perform transmission tests of the lines at the switching
center. Loopback is a communication channel with a single
endpoint. TCP/IP networks specify a loopback that allows the
client software to communicate with server software on the
same computer. users can specify an IP address, usually
127.0.0.1, which will point back to the ir computer’s TCP/IP
network con?guration. The range of addresses for loopback
functionality is 127.0.0.0 to 127.255.255.255. Similar to
ping, the loopback enable s a user to test one’s own network to
ensure the IP stack is functioning properly.
5. IPFS: IPFS stands for Interplanetary File System. At its core
it is a versioned ?le system which can store ?les and track
versions over time, like Git. It also de?nes how the ?les move
across a network, making it a distributed ?le system, much like
BitTorrent. In combining these two properties, IPFS enables a
new permanent web and augments the way we all use existing
internet protocols like HTTP .
A participant in the member Organization invokes a
transaction request through a client application.
Client application broadcasts the transaction invocation
request s to the Endorser peer.
Endorser peer checks the Certi?cate details and other records
to validate the transaction. Then it executes the Chaincode
(Smart Contract) and returns the Endorsement responses to the
Client. Endorser peer sends the transaction approval or
rejection as part of the endorsement response.
Client now sends the approved transaction to the o rderer peer
for this to be properly ordered and to be included in a block.
Orderer node includes the transaction into a block and forward
th is block to the Anchor nodes of di?erent member
Organizations of the Hyperledger Fabric network.
Fig.: Activity Diagram
Thus, blockchain helped us to overcome the problems in the
supply chain like eliminating the expired food from
consuming. Also, it would help equal distribution of the
revenue generated among the participants in the food supply
chain. Transparency and secu rity throughout the supply chain
is achievable through the project . Also smart contracts can
help eliminate costly delays and waste currently due to manual
ha ndling of paperwork.
We would like to thank RAIT IT department , an d our mentor
for their constant support.
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