Blockchain-Based Vendor Management in IT Challenges and Solutions

This research article examines the application of blockchain technology in IT vendor management, addressing the challenges faced by organizations in this domain. The paper outlines the inherent difficulties in traditional vendor management systems, such as transparency issues, security vulnerabilities, and inefficiencies in communication and contract management. It presents blockchain as a transformative solution, detailing how its decentralized and immutable characteristics can enhance vendor management processes. The study discusses the potential of blockchain to automate vendor verification, streamline contract management through smart contracts, and ensure data integrity. However, the paper also addresses the challenges of implementing blockchain, including technical integration with existing IT systems, organizational resistance, and regulatory compliance issues. Additionally, it includes case studies showcasing successful blockchain implementations in vendor management, highlighting the benefits of improved transparency and reduced risk of fraud. The paper concludes with recommendations for organizations considering the adoption of blockchain technology in their vendor management practices.