Blockchain-based Information Sharing: A New Opportunity for Construction Supply Chains

Pardis Pishdad-Bozorgi, Ph.D., Jong Han Yoon, Ph.D. Student, Nishant Dass, Ph.D.
Georgia Institute of Technology
Atlanta, Georgia

In the supply chain, information sharing is critical for facilitating decision making, accelerating the schedule, reducing costs, and enhancing the final quality of the project. However, information sharing is challenging in the construction supply chain when information asymmetry could help certain individuals avoid liability or help others maximize their profits by using substandard materials. In this environment, the stakeholders may not truly trust one another and may be reluctant to share complete information. Even though several studies have emphasized the importance of trust for information sharing, few studies have focused on promoting trust and verifying information using technology. The purpose of this paper is to examine the potential of Blockchain technology for establishing a trust-enhanced environment with distributed trust that will benefit the construction supply chain. This paper presents three logical scenarios for the application of Blockchain technology in information-sharing systems in order to demonstrate that the technology helps establish a trust-enhanced environment for reliable information sharing while eliminating counterfeiting and reducing bullwhip effect. These scenarios will demonstrate the value of Blockchain-based information sharing in the construction supply chain and possibly provide direction for future research with greater depth and specificity.

Key Words: Blockchain, Construction Supply Chain Management, Information Sharing, Trust

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