It is a common knowledge that the main goal of companies is to supply goods and services to buyers at maximum price for minimum cost. For companies such as energy producers, with complex and dynamic supply chains, this often causes cost control issues. Previously, business models based on VI (Vertical Integration) or outsourcing could mitigate cost increases, but these models have limits. A new paradigm is proposed: use of distributed ledger technology in the form of a blockchain-based supply chain integration solution. By permitting participants in a supply chain to integrate information flows in a secure, quick and automated levels of efficiency that are achieved and cannot be reached by other technologies and do not require participants to change their IT platforms.
The main purpose for the creation and management of the "supply chain" is for the seller to provide the buyer the maximum value – whether of a product or service – at the lowest cost. Here is a depiction of the "links" in the general supply chain for energy production.