Blockchain Technology in Supply Chain Management: Enhancing Transparency, Traceability, and Sustainable Performance

Product recalls can be costly because they may involve product removal, regulatory action, customer notifications, reputation loss, legal liability, and operational disruption. In a traditional supply chain, identifying affected products may require checking multiple databases and paper records. This process can be slow, especially when the product has passed through several suppliers and distributors. Blockchain can improve recall management by enabling faster identification of affected batches and supply-chain stages. If every product event is linked to a unique batch or serial number, companies can determine which products were produced using a particular raw material, transported through a specific route, or sold to specific locations. This targeted approach can reduce unnecessary recalls and minimize waste. Instead of withdrawing all products in a category, companies may recall only the affected batch. However, this benefit depends on complete participation and accurate data capture. If some suppliers or logistics providers do not record their events consistently, the traceability chain may contain gaps.

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