Application of Blockchain in Outbound Logistics Track and Trace

Abstract

Due to outdated practices, rising cost, low quality and poor customer service, the supply chain process has become more complex than ever. The power of customers has risen, and they are now considered to be the most important stakeholder. The ‘Amazon experience’ in retail sector has created ripples in supply chain network across all industries and the delivery along with visibility of products is of strategic importance for companies. Technology has also advanced to solve these problems, but the challenge lies in the implementation part as it is expensive and a cumbersome process. Digitalization of supply chain is a hot topic and various companies are have started to implement it to break the existing barriers and create an integrated system with the inclusion of all stakeholders. Appending to this, the introduction of blockchain has further intensified the need to track and trace products across a entire supply chain platform. Trust, immutability and transparency are the key properties of blockchain which is seen as a hyped as well as a potential solution for the existing problems within supply chain management network. The main objective of this research is to understand the need for track and trace solutions in outbound logistics management and to develop a framework based on the proposal to create a potential application of blockchain in outbound track and trace of a product and to identify the challenges and opportunities in its implementation. To have a vivid understanding of the outbound logistics processes and available track and trace solutions, a thorough literature review is undertaken. Upon analysis of the case study, a blockchain framework is proposed with the aim to understand the integration of physical flow and information flow in the outbound logistics. Further, recent projects on the implementation of blockchain technology in the supply chain network is studied to apprehend the necessity of this research. The challenges posing to the implementation of blockchain are also discussed. The research aims to understand the need of track and trace solutions and how blockchain implementation is feasible to achieve this solution. As a result of this study, the feasibility of blockchain technology to be used for tracking and tracing outbound logistics is proved. However, the discussed implementation challenges have delayed the adoption rate of blockchain in supply chain management and requires further research in this field.