For the first functionality, the BC acts as a database, whereby the data must be stored permanently and without contradiction along the SC. In this way, a complete, cross-company data and information flow along the entire SC can be ensured. Thus, the SC can be strengthened, since functional problems of the SC can be found or searched for in a targeted manner. Because nowadays it is not only individual companies that compete with each other, but entire SCs, a SC can generate or secure a competitive advantage over other SCs by increasing its efficiency. Since the data in the BC cannot be manipulated by the participants at a later time, the individual companies along the SC can gain an advantage because cooperation is more transparent and therefore fairer [25] (p. 5). When acting as a database in SCM, there are two possible advantages that BCT can provide: on the one hand, BCT can provide process improvements and, on the other hand, BCT can offer added value to the customer [26]. In the first case, competitive advantages arise from lower costs and in the second case, customers are willing to pay a higher price.

With regard to process improvements, it can be stated that a database based on BCT differs from a conventional database in that each participant in the network may have a complete copy of the database. In this way, everyone can copy the current changes to his database and check if it is consistent with the previous blocks [25] (p. 2). BCT is a suitable solution when trust is required and transparency needs to be created. According to Giungato and colleagues (2017), this may be the most important advantage of BCT in SCM and could be applied in many areas of SCM [27] (p. 8). Tijan and colleagues (2019) point out that the developments around Industry 4.0 already offer many possibilities to improve processes that can be supported or enabled by BCT. The goods remain traceable along the entire SC for all participants. Applying Big Data is a necessity for Industry 4.0. Big Data and BCT can benefit each other, because with BCT the data can be collected along the SC, which generates deeper insights through Big Data. This includes a large amount of structured, but also unstructured, data that are often only collected in order to obtain more data. The amount of this data is growing exponentially [7] (p. 6).

Traceability of processes or goods can be of great interest for SCs. Traceability can be implemented on the basis of BCT, which is why Business Process Management conducts research in the area of BCT. Due to the high degree of specialization of companies, SCs are becoming more and more complex and contain more participants, which can lead to trust problems in certain processes within an SC. This is especially problematic if critical goods, such as pharmaceuticals, are part of the SC; regulations and laws require full traceability of origin and processing for some critical goods [28] (p. 56). BCT in SCM could also prevent time delays and significantly reduce human error. Every transport within the SC can be documented reliably with BCT. In the best case, this traceability starts with the mining of the respective raw materials and ends with the purchase by the end customer [7] (p. 6).

The second possibility of BCT generating a competitive advantage in SCM is to offer the customer added value. The increase in transparency does not only provide an advantage for the SC companies, but can also create more trust in the product among final customers [29] (p. 2125). This increased trust could lead to higher customer satisfaction [4] (p. 264) and greater willingness to pay, especially for critical products such as food or pharmaceuticals [30] (p. 36505).

Smart Contracts have been identified in the literature as a second way in which BCT could provide advantages in SCM. In Section 2.4, Smart Contracts were presented theoretically. In summary, Smart Contracts are automated, secure contracts that are written to the BC and only trigger a transaction under previously known conditions. No support of a centralized execution authority is necessary. Smart Contracts enable the automation of complex multi-step processes [12] (p. 2301). For these reasons, the functions of Smart Contracts are very relevant to SCM. Traditional contracts often require a central, trusted third party. This trusted third party often charges high transaction fees and can become a weak point in the process; failure of this party can lead to security problems and a cancellation of the transaction. Furthermore, the decision of a trusted third party is not always objective and understandable for all the parties involved. Smart Contracts are different in that they function as autonomous actors and their behavior is completely predictable [12] (p. 2297).

Smart Contracts come with many problems, which is one reasons why there are hardly any real applications of Smart Contracts in SCM in the literature. The problems can be divided into four categories, which are described in more detail in the next section: programming, security, data protection and performance problems [18] (p. 94).