Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains

Research output: Journal article publicationJournal articleAcademic researchpeer-review

71 Citations (Scopus)

Abstract

The blockchain technology is very useful in many industries. One current application is on diamond authentication and certification, which is important in many luxury supply chains. In this paper, we explore different consumer utility driven operations models and highlight the values of blockchain technology supported (BTS) platforms for diamond authentication and certification. We build models and analytically examine both the traditional retail network operations (Model R) and the BTS selling platform (Model PL). We further extend the analysis to study the case with the BTS certification platform (Model BCR). We reveal the conditions under which one model outperforms the others. In particular, we note that the shopping convenience utility offered by the traditional retailers is a critical factor determining which model is the best. Finally, for the BTS platform operations, we study the blockchain-technology-based diamond authentication and certification (BDAC) cost and reveal that reducing it is beneficial to all parties in the luxury supply chain.

Original languageEnglish
Pages (from-to)17-29
Number of pages13
JournalTransportation Research Part E: Logistics and Transportation Review
Volume128
DOIs
Publication statusPublished - 1 Aug 2019

Keywords

  • Blockchain technology
  • Diamond authentication and certification
  • Fashion accessories
  • Luxury supply chain
  • Platform operations

ASJC Scopus subject areas

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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