Synergistic Blockchain and IoT Systems for Automated Returns and Remanufacturing

Abstract

Reverse logistics is necessary in cases where a completed product requires being reintroduced into the supply chain to the source, most commonly, the consumer, back to the manufacturer. This process may include other stages that require reverse logistics, especially when the returns are because of defects, unsold products, and reusing the packaging. Even though the consumer is the last point in the logistical chain, businesses should expect these returns to reduce the operational disruptions. This paper discusses the incorporation of Blockchain and Internet of Things (IoT) technology as a solution to streamlining the reverse supply chain (RSC). We will explore how these technologies can minimize waste and enhance environmental sustainability, and then explore how these technologies are applied in supply chain management. The decentralized and immutable nature of blockchain guarantees transparency and safety, whereas the IoT connects the physical and the digital worlds, facilitating efficient and automated processes. The results indicate that a hybrid of Blockchain and IoT forms a powerful digital RSC system, which provides a higher level of data security, transparency, and consumer confidence.