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Lack of transparency and traceability of products and their raw materials means that most products can only be thrown away or not properly recycled due to a lack of relevant data. This conflicts with the circular economy principles, which are demanded by several initiatives, including the European Union. The aim of this master thesis is to analyze this conflict and to propose a technical solution based on Distributed Ledger Technology that enables transparency and traceability of products and their materials. Therefore, the thesis addresses two central research questions: 1. How can traceability and transparency be enabled by integrating a DLT solution? 2. How would a prototype with the integration of smart contracts and DLT look like? To answer these questions, a blockchain solution is implemented using Hyperledger Fabric. The solution uses the immutability and decentralized nature of DLT to record and track the movement of products and their materials throughout their life cycle in the Circular Economy. Furthermore, with private data collections, confidentiality, and privacy are granted while ensuring transparency. The thesis contributes to the Circular Economy field by exploring the principles, models, and challenges of the Circular Economy and the circularity goals of a Digital Product Passport to develop a suitable technical solution. The chosen blockchain framework, Hyperledger Fabric, is presented, and its key components and features are highlighted. The thesis also delves into the design decisions and considerations behind the Digital Product Passport platform, explaining the architecture and transaction flow together with the prototype implementation and demonstration to showcase the functionality of the solution. Results and analysis provide insights into the challenges of the Circular Economy, sustainable resource management, and the Digital Product Passport, resulting in recommendations for future improvements and enhancements. Overall, this thesis offers a practical solution utilizing DLT to enable transparency and traceability in the Circular Economy, contributing to the realization of sustainable and efficient resource management practices to ultimately contribute to the set Circular Economy initiatives.
On the extension of digital ecosystems for SCM and customs with distributed ledger technologies
(2019)
Global supply chains represent the backbone of the modern manufacturing industry. Planning of global supply chains still represents a major hurdle, mainly because of the high complexity and unforeseen disruptions that have to be mastered for meeting the different logistics windows in a globally distributed production environment. Trust in supply chains is an additional challenge. A major – albeit sometimes overlooked - part of Supply Chain Management (SCM) is the management and integration of customs processes, clearing of tariffs, (re-)billing of customers, and fulfilling other legal requirements related to crossing borders, ranging from environmental standards over goods inspection to general paper work. With the exception of work offered by the World Customs Organization (WCO) the issue of customs and blockchain is still underrepresented in research and practice. In this paper, we look at innovations that drive the current ICTenabled SCM research and how these can be combined with smart customs management. After a literature review and introduction to the state-of-the-art, we list potential trust-based innovations for SCM and customs in digital business ecosystems. Based upon the innovations we also describe a requirements analysis of existing distributed ledger technologies (requirements for system layout, system configuration, system governance). A description of the prototype for the Lake Constance region – on which we are currently working – concludes the paper.