Blockchain-Based System for Supplier Selection in Sustainable and Leagile Supply Chains

Sustainability, leanness, and agility are key paradigms that enhance efficiency, effectiveness, and generate positive social and environmental impacts in supply chains. Supplier selection, a critical process in supply chain management, typically relies on predefined criteria such as cost, quality, and lead time, with the highest-ranking supplier being chosen. However, this process is vulnerable to risks including lack of transparency, fraud, corruption, human errors, and inefficiencies. To address these challenges, we propose a blockchain-based system that automates the supplier selection process. Our system enables users to evaluate suppliers based not only on economic criteria but also on sustainability (social and environmental) and leagility criteria. Additionally, it features a peer-review system where buyers and sellers rate each other, with these ratings integrated into the selection process to enhance transparency and reliability. The system employs a multi-attribute reverse auction to ensure that the most advantageous offer is selected. To mitigate the high costs of blockchain transactions, the system is implemented as an on-chain/off-chain hybrid, running on a local private blockchain. Functional, scalability, and security tests were conducted to evaluate the system’s performance, confirming its ability to scale for large-scale selections while remaining secure and free of vulnerabilities. The proposed solution contributes to the literature by addressing key procurement challenges across various sectors, promoting transparent and sustainable supplier selections, and supporting efficient, environmentally and socially responsible procurement practices. Its scalability and adaptability make it suitable for diverse applications, including online auctions and supply chain management, while its flexibility to operate on both private and public blockchain networks allows for broad adoption, enhancing procurement integrity and efficiency in both private sector marketplaces and public tenders.