Blockchain applications in business processes exemplified for procurement

Abstract

The purpose of this article is to introduce the application of the blockchain technology to a specific business process in procurement and to provide an updated concept. The blockchain technology is a very promising technology and facilitates a variety of applications for digitalization in business processes. Many appliances are already in use and benefits in terms of effectivity and efficiency can be stated. The transfer to procurement will be made on a conceptual basis. The scientific approach is analytical and theoretical, answering the research question about the applicability of the blockchain technology in business operations, exemplarily analyzed for the procurement management process. The application of this digital technology in the context of the procurement activities is described. In order to do this, a generally admitted procurement process is introduced as a basis for scientific discussion. In summary, three major applications of the blockchain were identified and their impact on the procurement department is depicted. The major issues are smart contracts, tracking of the supply chain as well as crypto currency. Specific advantages and disadvantages are pointed out. Finally the findings will be transferred to the procurement process.