Dangote Cement: Blockchain Technology in Logistics Dissertation

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Introduction

Due to the pandemic, supply chain operations have evolved rapidly over the past two years. Innovation to increase efficiency and protect against cyberattacks has become paramount to ensure the safe delivery of products to customers. The most relevant work in operations and supply chain management is to optimize internal processes, usually with the help of modern technologies (Holmström et al., 2019, Lamba and Singh, 2018). One of the most promising is the blockchain, an advanced database mechanism that enables the open exchange of information across a business network (Wamba and Queiroz, 2020). Research in this area is already focused on the practical implementation and development of specific models and the theoretical foundations of the relationship between model capabilities and familiar OSCM strategies (Cole, Stevenson, and Aitken, 2019, Tönnissen and Teuteberg, 2020, Wong et al., 2020). However, not all companies can afford the use of this technology due to several reasons, and not always obvious resource ones. Firstly, trust in new technology and practical knowledge of implementation is higher than understanding optimization power in business processes (Queiroz et al., 2021). Secondly, there are often problems integrating new technology due to the lack of an appropriate legal framework in the country where the organization is located (Dutta et al., 2020). Finally, lack of standardization, interoperability, privacy, and other technical issues are not yet well understood, leading to more chaos than order when misused (Allen et al., 2019, Hartley and Sawaya, 2019, Kumar, Liu and Shan, 2020). However, increased attention generally confirms the established trend for the gradual implementation of technology in this area.

Manufacturing companies may be more interested than others in transparency and the impossibility of changing every transaction to trace their products to the final consumer. Using the example of the largest company in Nigeria, Dangote Cement, where this technology has not yet been implemented, it is possible to consider the prospects for implementing and integrating blockchain with a potential assessment of practical benefits (Akinyoade and Uche, 2018, Etale, 2020). Such an approach will allow us to consider various secondary factors that impact the company’s change policy, cultural and social characteristics, and possible obstacles on the way.

Problem Statement

An assessment of the prospects and barriers to the use of relevant and modern blockchain technology in the processes of operations and supply chain management for the largest manufacturing companies.

Purpose

The purpose of the work is to compare the main obstacles and potential of blockchain implementation in OSCM in the case of Dangote Cement. Literature analysis shows the prospects of this technology in process optimization with some reservations and problems listed above. This paper may consider the case of one of the largest cement companies to assess the potential for change, positive consequences, pitfalls, and a list of other factors that could affect implementation. It is possible to solve the problems by interviewing Dangote Cement employees responsible for OSCM using a specific questionnaire, which can be used to identify why this company does not use this technology, its attitudes towards it, and the prospect of integration. Then, after conducting a seminar for management and the same employees, where, based on the study, specific applied advantages will be described that promote competitiveness and develop the potential for exporting goods, repeat the survey and evaluate the difference. The nature of the different responses will be explored with an additional question that will seek to identify the motive for the change of opinion. In fact, the work will be divided into two stages: an analysis of the aspects of the problem followed by recommendations, as well as a targeted survey, a comparison with the original analysis based on the literature, and statistical processing of the data.

Hypotheses

  • H1. Blockchain implementation in Dangote Cement will speed up data processing in the supply chain.
  • H2. Blockchain implementation in Dangote Cement will improve product quality control and reduce waste.
  • H3. Implementing the blockchain in Dangote Cement will improve the company’s financial performance in the long term.

Conclusion

The theoretical framework suitable for this work lies in the plane of the concepts and principles of operational management: how the company corresponds to them at the moment and what can change as a result of implementation. The literature review will provide a deep understanding of the current practice of using blockchain in OSCM. The Dangote Cement context will allow first-hand identification of barriers through surveys and attempt to systematize knowledge for extrapolation to other manufacturing companies.

Reference List

Akinyoade, A., and Uche, C. (2018) ‘’, Business History, 60(6), pp. 833-858. Web.

Allen, D. W., et al. (2019) ‘’, Asia & the Pacific Policy Studies, 6(3), pp. 367-380. Web.

Cole, R., Stevenson, M., and Aitken, J. (2019) ‘’, Supply Chain Management: An International Journal, 24(4), pp. 469-483. Web.

Dutta, P., et al. (2020) ‘’, Transportation Research Part E: Logistics and Transportation Review, 142, p. 102067. Web.

Etale, L. M. (2020) ‘’, American International Journal of Business Management, 3(8), pp. 01-10. Web.

Hartley, J. L., and Sawaya, W. J. (2019) ‘’, Business Horizons, 62(6), pp. 707-715. Web.

Holmström, J., et al. (2019) ‘’, Journal of Operations Management, 65(8), pp. 728-734. Web.

Kumar, A., Liu, R., and Shan, Z. (2020) ‘’, Decision Sciences, 51(1), pp. 8-37. Web.

Lamba, K., and Singh, S. P. (2018) ‘’, The International Journal of Logistics Management, 29(2), pp. 629-658. Web.

Queiroz, M. M., et al. (2021) ‘’, International Journal of Production Research, 59(20), pp. 6087-6103. Web.

Tönnissen, S., and Teuteberg, F. (2020) ‘’, International Journal of Information Management, 52, p. 101953. Web.

Wamba, S. F., and Queiroz, M. M. (2020) ‘’, International Journal of Information Management, 52, p. 102064. Web.

Wong, L. W., et al. (2020) ‘’, International Journal of Information Management, 52, p. 101997. Web.

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IvyPanda. (2024, April 19). Dangote Cement: Blockchain Technology in Logistics. https://ivypanda.com/essays/dangote-cement-blockchain-technology-in-logistics/

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"Dangote Cement: Blockchain Technology in Logistics." IvyPanda, 19 Apr. 2024, ivypanda.com/essays/dangote-cement-blockchain-technology-in-logistics/.

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IvyPanda. 2024. "Dangote Cement: Blockchain Technology in Logistics." April 19, 2024. https://ivypanda.com/essays/dangote-cement-blockchain-technology-in-logistics/.

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