A recent study by Ejairu, et al. (2024) titled “Blockchain in global supply chains: A comparative review of USA and African practices” published in International Journal of Science and Research Archive, shows that both the USA and African countries can enhance transparency, traceability, and efficiency in supply chains through blockchain technology.
The study conducts a comparative review of blockchain adoption in global supply chains, focusing on the USA and African countries. It examines how blockchain technology is utilized to enhance transparency, traceability, and efficiency within supply chains. Specifically, the study highlights the implementation of smart contracts to automate processes and reduce delays. In the USA, one of the primary challenges identified is the need for standardized protocols and regulatory frameworks. The lack of uniform standards across different states and industries creates inconsistencies that can hinder the seamless integration of blockchain technology. Additionally, navigating the complex regulatory landscape poses a significant barrier to widespread adoption. However, the USA has the advantage of advanced technological infrastructure and a higher level of digital literacy, which can facilitate the deployment of blockchain solutions.
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Blockchain can significantly enhance transparency, traceability, and efficiency in supply chains, despite differing challenges and opportunities in the USA and Africa. – Ejairu, et al., 2024
Conversely, in African countries, the challenges are more centered around limited technological infrastructure and the need for capacity building. Many regions in Africa lack the necessary digital infrastructure, such as reliable internet access and advanced computing resources, which are critical for the implementation of blockchain technology. Furthermore, there is a pressing need for capacity building to equip stakeholders with the knowledge and skills required to effectively use and manage blockchain systems. Despite these challenges, there is a growing interest in leveraging blockchain to address issues such as fraud and lack of trust in supply chains. Both regions can benefit significantly from blockchain technology. By reducing fraud and improving trust among stakeholders, blockchain can enhance the overall integrity of supply chains. For instance, blockchain’s immutable ledger can provide verifiable records of transactions, thereby reducing the risk of tampering and fraud. This increased transparency can also foster greater trust among supply chain participants, from producers to consumers. The study emphasizes the importance of understanding local contexts for the successful implementation of blockchain technology. In the USA, this involves addressing regulatory and standardization issues, while in Africa, it entails developing the necessary technological infrastructure and building local capacity. Tailoring blockchain solutions to meet the specific needs and conditions of each region is crucial for maximizing their potential benefits in enhancing supply chain operations.
How the Study was Conducted
The study compares the adoption, challenges, and benefits of blockchain technology in supply chains between the USA and African countries. The authors draw on existing research and studies to highlight the potential of blockchain technology in enhancing supply chain efficiency, transparency, and traceability. Specific examples from the USA and Africa are examined to illustrate the practical applications and impacts of blockchain technology in different socio-economic contexts. The study identifies and analyzes the unique challenges and opportunities faced by each region in adopting blockchain technology.
What the Authors Found
The authors found that both the USA and African countries can enhance transparency, traceability, and efficiency in supply chains through blockchain technology. The study posits that the USA faces issues like standardizing protocols and regulatory frameworks, while Africa deals with limited technological infrastructure and capacity building. In addition, the USA has more advanced integration of blockchain, focusing on smart contracts and automation, whereas Africa is leveraging blockchain to combat counterfeit goods and fraud.
Why is this Important
Enhanced Transparency and Traceability: Blockchain can provide an immutable record of transactions, making it easier to track products from origin to consumer. This is crucial for ensuring product authenticity and safety.
Efficiency Improvements: By automating processes and reducing the need for intermediaries, blockchain can streamline supply chain operations, reducing costs and time delays.
Combatting Fraud and Counterfeiting: In regions like Africa, blockchain can help address significant issues with counterfeit goods, ensuring that consumers receive genuine products.
Regulatory Compliance: Blockchain can help companies comply with regulatory requirements by providing a transparent and auditable trail of transactions.
Global Collaboration: The study underscores the need for collaboration between different regions to overcome challenges and leverage blockchain’s full potential, fostering innovation and economic growth.
What the Authors Recommended
- The authors recommend developing standardized protocols and regulatory frameworks to ensure interoperability and compliance across different regions. This would involve creating uniform standards that facilitate seamless integration and consistent application of blockchain technology.
- Investing in technological infrastructure and training is crucial, particularly in regions with limited resources. This includes enhancing digital infrastructure and providing education and training to build the necessary skills and knowledge among stakeholders.
- Encouraging collaboration between governments, private sectors, and international organizations is essential. By sharing knowledge, resources, and best practices, these entities can work together to advance the adoption and effective implementation of blockchain technology.
- Implementing pilot projects is recommended to test and refine blockchain applications in real-world supply chain scenarios. These pilot projects can help identify practical challenges and solutions, paving the way for broader deployment.
- Raising public awareness about the benefits and potential of blockchain technology is important to gain broader acceptance and support. Educating the public on how blockchain can enhance supply chain efficiency, transparency, and security will help build a supportive environment for its adoption.
In conclusion, the comparative study by Ejairu et al. (2024) underscores the transformative potential of blockchain technology in global supply chains, highlighting its ability to enhance transparency, traceability, and efficiency. While the USA benefits from advanced technological infrastructure and higher digital literacy, it faces regulatory and standardization challenges. Conversely, African countries confront limited technological resources and the need for capacity building yet show a growing interest in blockchain to combat fraud and enhance trust. The study calls for standardized protocols, investment in infrastructure, collaboration across sectors, pilot projects, and public awareness to fully harness blockchain’s benefits, paving the way for more secure and efficient supply chains worldwide.
Cite this article as (APA format):
AR Managing Editor (2024). Enhancing Global Supply Chains: Comparative Study on Blockchain Adoption in USA and Africa. Retrieved from https://www.africanresearchers.org/enhancing-global-supply-chains-comparative-study-on-blockchain-adoption-in-usa-and-africa/
The African Research (AR) Index is a comprehensive scholarly directory and database focused explicitly on journal publishers that publish and disseminate African research.
