Black Swan Events: Mitigating Disruption to a Supply Chain Using Blockchain and Artificial Intelligence

Geopolitical situations, such as the Ukraine–Russia war, the Israel–Hamas war, and pandemics, can disrupt supply chains, such as the rerouting of oil tankers via South Africa to avoid the impact of the Israel–Hamas conflict. These events will probably occur again, but they are black swan events and difficult to predict. How can firms manage these events to minimise disruption to their supply chains? This paper proposes that a blockchain architecture has the potential to build resilience in supply chains and give them the flexibility to withstand the challenges of black swan events. The decentralisation ability of blockchain technology enables separation of the discrete elements of a sustainable supply chain so contagion does not impact the overall sustainable supply chain. To achieve flexibility in a sustainable supply chain ecosystem requires governance, leadership, and management. Also, artificial intelligence (AI), in conjunction with blockchain, is a technology that can enhance the flexibility and resilience of the supply chain. Thus, AI can act as a controller, co-ordinator, and an integrator in sustainable supply chain systems.