Beyond the Buzz: What Blockchain and IoT Really Mean for Your Supply Chain

Everyone’s talking about Blockchain and the Internet of Things (IoT). But are these technologies just expensive experiments, or essential tools for future-ready supply chains?

Why This Matters 

Supply chain professionals today face extraordinary pressure: demand volatility, sustainability targets, and global risk exposure. Amid this, emerging technologies like Blockchain and IoT are frequently pitched as solutions, but how much of it is hype, and how much is genuinely helpful? This article unpacks the promise and reality of these technologies and provides grounded examples any supply chain leader can learn from.

What Blockchain and IoT Bring to the Table

• IoT connects physical assets, like pallets, containers, and sensors, to the digital world, providing real-time data on location, temperature, and handling.

• Blockchain creates a shared, tamper-proof record of transactions and product history across organizations, enhancing trust, traceability, and accountability.

What It Looks Like in the Real World

1. Food Traceability: Turning Sustainability Into Revenue 

In the fishing industry, GPS-enabled IoT devices onboard vessels validate catch locations, while QR-coded tags scanned at each stage, from boat to processing to store, log data on a blockchain ledger (Provenance, 2016). Thanks to this project, consumers can scan a code to verify whether their tuna was legally and sustainably sourced. This helped in increasing supply chain transparency and trust in customers and encouraged ethical fishing practices, as well as resulting in increased revenue due to a price premium.

2. Agriculture: From Vineyard to Glass with Transparency 

In premium wine supply chains, IoT sensors monitor vineyard conditions to track soil moisture, temperature, and growth. Blockchain records every stage, from fermentation to bottling to distribution. A scannable label allows buyers to verify the wine’s origin, handling, and authenticity (Adamashvili et al., 2024). This reassures consumers and protects brand value.

3. Pharmaceutical Industry: Managing Complexity in Clinical Trials 

In my research on IoT and Blockchain implementation in clinical trials, we examined how these technologies can enhance security and control in reverse logistics. Temperature-sensitive biological samples (such as blood or tissue) require continuous, verified monitoring throughout the transportation and logistics process. We propose a framework which uses: 

• IoT sensors to capture real-time data on temperature, humidity, and location during transit. 

• This data is securely written to a Blockchain ledger that is shared with all authorized parties, including laboratories, regulators, and research partners. 

• Smart contracts add automation by triggering alerts or actions when environmental thresholds are breached. 

Implemented in a Contract Research Organization (CRO), this system improves compliance, reduces delays, and ensures a verifiable chain of custody, critical in high-stakes, high-regulation environments such as clinical trials.

4. Luxury Brands

Luxury brands are already exploring Blockchain and IoT for product authentication. For example, Swiss watchmakers like Breitling and Vacheron Constantin are embedding NFC chips into their timepieces and linking them to blockchain certificates. This allows customers to verify authenticity, track ownership history, and even facilitate digital warranties or resale, all while combating counterfeiting, via their digital passports.

The Barriers: Not All That Glitters Is Gold 

Despite their promise, these technologies aren’t plug-and-play.

• Blockchain adoption is expensive and can suffer from low throughput and complexity.

• IoT devices need secure networks and maintenance.

• Integration across these tools is technically demanding and rarely standardized.

Research shows many companies adopt these tools with inflated expectations, only to be disappointed by slow returns and unforeseen costs (Sodhi et al., 2022). For many, simpler digital tools may offer more immediate ROI, such as cloud-based inventory management systems, barcode/RFID tracking, or centralized ERP systems with built-in analytics.

So, Should You Invest? A Strategic Takeaway 

If you're in a highly regulated, customer-sensitive, or sustainability-driven industry (such as pharmaceuticals or luxury sectors) the investment may be justified. In these industries, traceability, authenticity, and compliance aren’t just value-adds, they're essential to brand trust and regulatory adherence.

But even when the business case is strong, companies should avoid impulsive decisions. In my own research, we advocate a structured, strategic approach. We propose a simplified selection framework inspired by our academic work: identify your core operational priorities, such as device reliability, security, or cost, and evaluate technology options accordingly. You don’t need to be a data scientist to do this. Our tested approach, based on a multi-criteria evaluation method, helps organizations choose the right tool for their context without being overwhelmed by hype or complexity. 

For companies evaluating Blockchain and IoT, this kind of focused, criteria-driven decision-making ensures you’re investing in solutions that deliver real value, not just headlines.

Final Thoughts: Tech is a Tool, Not a Strategy 

The takeaway is clear: Blockchain and IoT hold promise, but only for the right problem, in the right context. They’re not a one-size-fits-all solution. Their true power is unlocked when integrated into a thoughtful, strategy-aligned approach that focuses on real business outcomes like compliance, transparency, or trust.

If you’re in an industry where traceability and integrity are not just value-adds but non-negotiables, then these technologies deserve serious consideration. But don’t let hype drive your decisions. Let need, and strategy, lead the way.