Blockchain in Retailing
Blockchain in retailing as a distributed ledger technology gives retailers and consumers security, automation, inventory visibility, and transparency across the supply chain (SC). As an immutable ledger, Blockchain Technology (BT) can provide retailers with real-time data about their SC, leading to a more compliant SC. Given the importance of gaining customers’ trust, BT can provide security and transparency to build resilient relationships between consumers and brands.
Read about consensus in Blockchain here
Based on: Blockchain Technology in Omnichannel Retailing: A Novel Fuzzy Large-Scale Group-DEMATEL & Ordinal Priority Approach. Authors: Shinan Zhao, Ayad Hendalianpour, & Peide Liu, Expert Systems with Applications.
Some applications build with the use of Blockchain can support infrastructure in independent retailing actions include Blockchain in Retailing:
- Payment Management: Blockchain allows immediate payment and significantly reduces transaction costs. Effective risks are also minimized, thus increasing trust.
- Inefficiency monitoring and modification: BT provides a wide range of possibilities for modifying incorrect and inefficient actions by establishing a fixed manual of transactions.
- Implementation: To achieve and optimize retailing goals such as delivery time, monitoring, etc., Blockchain provides tracking of the real-time loading capability based on the product data and regulations. Blockchain in Retailing.
- Identity Encryption Security: Blockchain can link real identities to cryptographic identity.
Recently significant changes have been made in the retail sector worldwide. Retail firms’ Supply Chains (SCs) are currently fragmented and have more difficulty providing a superior customer experience.
To overcome this, retail firms have integrated their channels, giving rise to Omni-Channel Retailing (OCR). In OCR, a firm uses different channels that operate cooperatively, enabling customers to change the channels easily for convenience. This leads to multi-channel marketing, which was extended to encompass a wide range of interactions between a firm and its customers. This also rised the safest and most convenient alternative, services like Buy-Online-Pick-up-in-Store (BOPS). It have increased by 208% compared to last year (Zhang et al., 2021).
A big challenge retailers faced in creating optimized unified shopping experiences as a predicting changes across channels and respond to them efficiently. Blockchain in Retailing.
Multiple Attribute Decision Making
Multiple Attribute Decision Making (MADM) is a decision-making method used when there are multiple criteria to consider and multiple alternatives to choose from. It’s commonly applied in situations where decisions involve evaluating several attributes or criteria simultaneously. MADM aims to provide a systematic approach for decision-makers to analyze and rank alternatives based on their performance against various criteria. Blockchain in Retailing.
MADM techniques often involve mathematical models, such as weighted sums, scoring methods, or mathematical programming, to quantify the preferences of decision-makers and assess the trade-offs between different criteria. Some well-known MADM methods include the Analytic Hierarchy Process (AHP), Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), and the Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE).
Ordinal Priority Approach with Fuzzy Set Theory
OPA-F stands for “Ordinal Priority Approach with Fuzzy Set Theory.” It is a novel Multiple Attribute Decision Making (MADM) approach introduced in 2021 and utilized by many researchers. OPA-F is designed to prioritize alternatives or attributes in a decision-making process, particularly in situations involving large-scale methods with many experts.
Here’s a breakdown of OPA-F based on the context:
- Purpose and Context: OPA-F is developed in the context of addressing decision-making challenges in OCR (Organizational Crisis Response), specifically related to responding to stakeholders during a coronavirus outbreak (BT – Building Trust). Trust-building is crucial in OCR, especially when different sectors may not know each other well. Blockchain in Retailing.
- Characteristics and Methodology: OPA-F integrates several methodologies, including the DEMATEL method and Fuzzy Set Theory. DEMATEL is effective in identifying cause-and-effect relationships within complex systems, while Fuzzy Set Theory helps manage ambiguity in decision-making processes. OPA-F is tailored to handle large-scale decision problems involving multiple attributes and alternatives.
- Functionality: OPA-F aims to identify causal relationships between studied variables, recognize causal associations, and prioritize alternatives or attributes based on these relationships. It addresses the ambiguity and uncertainty inherent in decision-making by empowering decision-makers to declare their opinions and manage decision-making vagueness effectively.
- Application: OPA-F is applied to control and express uncertainty in human judgments, manage ambiguity in different decision-making problems, and handle decision-making vagueness. It utilizes Fuzzy Set Theory to handle the vagueness in computing by experts.
In summary, OPA-F is a sophisticated decision-making approach that combines the Ordinal Priority Approach with Fuzzy Set Theory to address the challenges of decision-making in complex and uncertain environments, particularly in OCR contexts during crises such as the COVID-19 pandemic.
Blockchain in Retailing
Blockchain technology has emerged as a revolutionary force in various industries, offering unprecedented transparency, security, and efficiency. In the realm of retailing, blockchain holds immense promise, reshaping traditional business operations and customer interactions. One of the most significant applications of blockchain in retail lies in supply chain management. By leveraging blockchain’s decentralized ledger system, retailers can track the entire journey of products from manufacturer to end consumer with unparalleled accuracy. This transparency not only helps in combating counterfeit products but also ensures ethical sourcing and sustainability. Furthermore, smart contracts powered by blockchain enable automated execution of agreements between retailers and suppliers, streamlining procurement processes and reducing costs. Additionally, blockchain facilitates seamless payments and transactions, eliminating intermediaries and reducing transaction fees.
Blockchain in Retailing. Retailers can leverage cryptocurrencies or blockchain-based payment systems to offer customers secure and frictionless payment options, fostering trust and loyalty. Moreover, blockchain enhances customer engagement and loyalty programs by providing immutable records of transactions and rewards, thereby increasing transparency and accountability. By implementing blockchain-based loyalty programs, retailers can incentivize customer participation and gather valuable insights into consumer behavior.
Furthermore, blockchain technology enables the creation of decentralized marketplaces, where retailers can directly connect with consumers without the need for intermediaries. These decentralized platforms empower small businesses and artisans to reach a global audience, fostering inclusivity and fair competition. Additionally, blockchain-based digital identities enhance customer data security and privacy, enabling retailers to personalize marketing efforts while respecting user consent. Blockchain in Retailing.
Overall, blockchain technology offers a plethora of opportunities for retailers to streamline operations, enhance trust, and deliver unparalleled value to customers in today’s rapidly evolving marketplace. Embracing blockchain innovation is not just a strategic advantage but a necessity for retailers aiming to thrive in the digital age.
