Is DLT the solution for current supply chain problems? Bridging the gap between EDI and DLT

Abstract

Centrally administrated systems have historically facilitated inter-organizational data exchange in supply chains (SC), relying on the message standard electronic data interchange (EDI). However, the current use of EDI fails to meet information needs, as point-to-point interfaces complicate information sharing among multiple partners and batch processing lacks real-time capabilities. This results in information asymmetries, leading to inefficiencies. Distributed ledger technology (DLT), which offers decentralized communication and data storage, presents a potential solution. In this paper, we present a systematic literature review comparing the centralized architectures utilizing EDI applications with the decentralized architecture of DLT within SCs. We identified the limitations of the current systems and assessed whether DLT offers a solution. The findings show that DLT enhances real-time data exchange, automation potential, and transparency, but also faces shortcomings. Integrating EDI with DLT offers a promising approach to leverage synergies and address the weaknesses of both technologies, e.g., lacking standards for DLT.