1.
Blockchain in Supply Chain (Lecture 11)
Key Concepts:
1. Blockchain Basics:
o Blockchain is a decentralized, immutable digital ledger that tracks transactions
and data.
o Tokenization involves representing physical assets as digital tokens to record
origin, certifications, and history.
2. Benefits:
o Transparency: Real-time visibility across all supply chain stakeholders.
o Efficiency: Reduced paperwork and redundancy.
o Trust: Immutable records incentivize accurate data inputs.
o Traceability: Enhanced tracking and detection of gaps.
3. Applications and Examples:
o Everledger (Diamonds):
Tracks diamonds’ origin, cutting, and certifications using blockchain.
Enhanced trust between buyers and suppliers.
o Wine Industry:
"Grape-to-bottle" visibility with QR codes linking the bottle to its
production process.
o Bumble Bee Seafood:
Enables consumers to trace their seafood from catch to plate.
4. Blockchain Oracles:
o Oracles connect blockchains with external data sources (e.g., weather, stock
prices).
o Types: Hardware (IoT devices), Software (APIs), and Human (experts).
5. Limitations:
o Scalability challenges, irreversible transactions, and complexity in managing
private keys.
Potential Exam Questions:
Case-Based: Discuss how blockchain can improve transparency and efficiency in the
diamond industry. Use Everledger as an example.
What role do oracles play in enhancing the functionality of blockchain systems?
Provide examples.
Evaluate the limitations of blockchain in supply chain applications and suggest
mitigation strategies.
2. Case Study: Coda Coffee and Bext360 (Lecture 12)
Key Concepts:
1. Coda Coffee’s Mission:
o Ethical sourcing and sustainability through the Farm2Cup certification.
o Direct engagement with farmers and premium pricing for quality beans.
2. Bext360 Partnership:
o Focused on transparency and ethical practices using advanced technology:
Machine Vision: Automated quality scoring of coffee cherries.
Artificial Intelligence: Real-time defect detection and cupping scores.
Blockchain: Immutable records of coffee processing from farm to
consumer.
IoT: Cloud connectivity for data synchronization.
3. Impact and Results:
o Real-time payments to farmers, reducing cash flow issues.
o Pilot success in Uganda with high-quality scores and transparency.
o Enhanced consumer trust through QR code-enabled product traceability.
4. Challenges and Future Directions:
o Scaling the solution to larger markets like Brazil.
o Addressing data privacy and independent control over blockchain records.
Examples:
Pilot Project in Uganda:
o Farmers deposited cherries for AI analysis.
o Real-time payments based on quality assessment.
Expansion to Brazil:
o Addressing scalability and data control concerns for a larger cooperative.
Potential Exam Questions:
How did the Bext360 partnership align with Coda Coffee’s mission of sustainability
and ethical sourcing?
Evaluate the impact of blockchain and AI on the coffee supply chain using the Coda
Coffee case.
Discuss the scalability challenges faced by Coda Coffee and Bext360 in expanding
their model.
3. Generative AI in Supply Chain (Lecture 13)
Key Concepts:
1. Overview of Generative AI:
o Uses deep learning to create new data (text, images, audio) based on patterns
from training data.
o Enhances supply chain efficiency through planning, sourcing, manufacturing,
and logistics.
2. Applications and Examples:
o Supply Chain Planning (Walmart):
Demand forecasting using large language models.
Real-time substitution recommendations for out-of-stock items.
o Sourcing (Pactum at Walmart):
AI-enabled supplier negotiation, automating contract management and
evaluation.
o Manufacturing (Delta Galil):
Predictive maintenance and quality control using AI.
Automated corrective actions for defect resolution.
o Logistics (Project44’s Movement GPT):
Real-time shipment tracking and route optimization using
conversational AI.
3. Challenges:
o Job Displacement: Automation replacing manual roles.
o Cybersecurity Risks: Vulnerability to hacking.
o Accountability Issues: Ambiguity in responsibility for AI decisions.
Examples:
Adidas Product Design:
o Generative AI in the design of recyclable sneakers like Futurecraft Loop.
Walmart’s Pactum Tool:
o Negotiated 64% of supplier contracts within 11 days, saving costs and
extending payment terms.
Project44’s Movement GPT:
o Simplified shipment management through conversational AI.
Potential Exam Questions:
Case-Based: Analyze how Walmart uses generative AI to enhance supplier
negotiations and inventory management.
Evaluate the environmental benefits of integrating generative AI in logistics. Use
specific examples like Project44.
Discuss the challenges and ethical considerations of deploying generative AI in
supply chains.
General Preparation Tips for Case-Based Questions:
1. Understand the Framework:
o Define the problem or objective in the case.
o Identify the role of technology (e.g., blockchain, AI) in addressing the
problem.
2. Use Examples:
o Always back your answers with real-world examples like Everledger,
Bext360, Walmart, or Project44.
3. Analyze Impact:
o Discuss how technology improves transparency, efficiency, and trust while
addressing challenges like scalability or security.
4. Highlight Challenges and Solutions:
o Focus on practical limitations and propose realistic solutions.