Securing the Supply Chain: Leveraging IoT and Blockchain for Financial Risk Management

Abstract

The needs and limitations of security create impediments to the flow of supplies and distribution, both physically and logically. These "barriers," which are the result of political or perceived enhanced security needs, impair the company's ability to respond quickly and its financial and operational success. One of the key challenges for the management of supply chains is integrating the security factor into the administrative strategy, structure, and operations [1]. SCS entails taking precautions to prevent illegal goods from accessing the supply chain as well as items from exiting it. The risk to a supply chain is represented by this potential "disruption of flows between organizations" [2]. Formally speaking, supply chain risk may be defined as the distribution's volatility, value, and likelihood of supply chain outputs [3]. SCS is therefore a part of an organization's entire risk management plan. Even though supply chain risk management (SCS) is the specific subject of this study, it's crucial to place the topic of SCS within the broader framework of supply chain security management [4].