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Article

The Blockchain Effect on Courier Supply Chains Digitalization and Its Contribution to Industry 4.0 within the Circular Economy

by
Ra’ed Masa’deh
1,*,
Mustafa Jaber
2,
Abdel-Aziz Ahmad Sharabati
2,
Ahmad Yacoub Nasereddin
2 and
Ahmad Marei
2
1
Department of Management Information Systems, School of Business, The University of Jordan, Aljubeiha, Queen Rania Street, Amman 11942, Jordan
2
Business Faculty, Middle East University, Amman 11831, Jordan
*
Author to whom correspondence should be addressed.
Sustainability 2024, 16(16), 7218; https://doi.org/10.3390/su16167218
Submission received: 7 June 2024 / Revised: 14 August 2024 / Accepted: 17 August 2024 / Published: 22 August 2024
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Abstract

:
The goal of this research is to investigate blockchain technology’s influence on digitizing courier supply chains and advancing Industry 4.0, which leads the digitization revolution by integrating blockchain to digitize processes that would serve the circular economy. It evaluates how blockchain enhances transparency, traceability, and digital processes in logistics, promoting sustainability through waste reduction and improved reuse. The study aims to identify the benefits and challenges of blockchain integration, develop a conceptual framework, and provide actionable insights to improve supply chain management, operational efficiency, and sustainability. This research uses a qualitative research method including a literature review as well as interviews for case studies to explore both the benefits and challenges when applying blockchain technology in courier organizations in Industry 4.0 within the circular economy. The results show that blockchain technology can enhance the security, traceability, and efficiency of courier supply chains, reduce theft, error risk, and fraud, as well as facilitate specific process automation via smart contracts. Blockchain technology can support the digital transformation of logistics organizations and enhance circular economy networks in Industry 4.0 by enabling automation, transparency, traceability, and maintaining responsibility for the environment. This research is an exploration of the effect of blockchain technology on the courier supply chain in the logistics firms in Industry 4.0 within the circular economy and the development of a conceptual framework for usage. In addition, it capitalizes on both coordination and collaboration among players through decentralization to obtain maximum fruitful benefits.

1. Introduction

Assume you are working in a firm of logistics and SCM, where competition is intense and customer satisfaction is key. You are always looking for ways to improve your operations, achieve a competitive advantage in the marketplace, and fit in with Industry 4.0, which employs different technologies for digitization and the automation of processes to remain in line with the circular economy concerned with sustainability by reducing resource consumption, reuse, and recycling. This is where blockchain technology comes into play. This research explores the blockchain technology effect on the logistics supply chain organizations in Industry 4.0 within the circular economy by investigating the blockchain technology influence on the smart contracts, transparency, traceability, and security [1,2] of the courier supply chain in the circular economy and Industry 4.0.
The key problem of this research includes the benefits and challenges of supply chains in logistics organizations concerning traceability, smart contracts transparency, and security [3]. This research goal is to recognize gaps related to supply chain implementation and the potential advantage of using blockchain technology [4]. Furthermore, it encourages the usage of blockchain technology logistics organization transformation and boosts the continuous digital transformation in this industry. As part of Industry 4.0 [5,6]. this serves the concept of the circular economy in digitizing processes and reducing resource consumption. This needs both coordination and cooperation among players through blockchain technology and decentralization.
The research aim of this research is very important for directing the research on the effect of blockchain on courier supply chains, its role in digitalization, and its contribution to Industry 4.0 within the circular economy. Therefore, there are many research objectives:
These include investigating how blockchain technology can enhance transparency, traceability, and security in courier supply chains; evaluating how blockchain optimizes logistics and reduces costs in courier operations; appraising the digital transformation in courier services and its implications for operational efficiency; recognizing important digital tools and technologies that are forming the future of courier supply chains; comprehending how blockchain and digitalization integrate with Industry 4.0 principles in courier supply chains; investigating how smart contracts and IoT improve the courier industry’s automation and real-time data capabilities; testing how blockchain and digitalization in courier supply chains boost the fundamentals of the circular economy; and understanding how these technologies promote sustainability, reduce waste, and use resources efficiently within courier networks.
The key outcomes of this study specified the real-world value of blockchain technology for academicians, researchers, and managers in courier supply chain organizations. There are two central research questions: How will using blockchain technology impact the digitization of courier supply chains in logistics firms? What are the possible benefits and challenges related to taking this on to enhance the overall customer experience by boosting traceability, security, transparency, and smart contracts that are compatible with Industry 4.0 to automate the process without intermediaries within the circular economy to maintain sustainability, environment, and responsibility?
Lastly, the definition of immutability is discussed. Immutability refers to the characteristic of data that cannot be altered or changed once it has been created or stored. The immutability feature of blockchain technology guarantees the system’s integrity and transparency because once a transaction is registered on the blockchain, it will not be modified or deleted. This adds an extra layer of security to the courier supply chain, further enhancing its benefits.

2. Literature Review

2.1. Blockchain Technology

Blockchain technology is defined as a distributed database that records all digital events between participants in a decentralized manner. It has its origins in distributed ledger technology [7] and enables new forms of distributed software architectures [8]. Moreover, transactions in blockchain technology are not only verified using cryptography and recorded in a ledger through a peer-to-peer network [9]. However, in a blockchain, the public key is distributed across participating nodes, while the private key is used as a digital signature and always acts as a password [10]. Blockchain technology also promotes secure communication mechanisms such as authentication, access control management, and digital certificates to encourage the usage of blockchain technology in Industry 4.0 sustainable development [11].

2.2. Supply Chain Management (SCM)

Supply chain management (SCM) involves managing relationships between organizations to facilitate the flow of materials, services, finances, and information from producers to consumers [12]; additionally, it includes planning and managing all activities related to sourcing and logistics as well as collaborating with partners such as intermediaries, suppliers, customers, and service providers [13]. However, the real challenge of achieving a seamless flow of products and achieving visibility at every stage is still unaddressed [14], The integration of blockchain, IoT, and AI technologies offers a solution for supply chain challenges by allowing tasks execution through these technologies in the supply chain [15], and this is where the concept of smart factories comes into play, involving the electronic flow of production processes, which stems from Industry 4.0 and has influenced the organizational flow of physical and information in supply chains [16]. The concentration is on automation, interconnectivity, machine learning, IoT, real-time data, blockchain, and digital manufacturing [17].

2.3. Digital Industry 4.0 and the Circular Economy

Firms strive to keep up with the fast-paced dictates of the modern world. They required a solution that would make them flexible and agile. That is when the concept of “digital” appeared. It is a set of technological and organizational processes that allow firms to move quickly and efficiently [18]. However, this is not everything; it is also related to the utilization of electronic technology to store and process data [19]. This process is well known as digitalization, which requires converting analog signals into digital signals to make information more suitable and more accessible [20].
Industry 4.0 is leading this digitalization revolution, which is also strong thanks to artificial intelligence (AI), the Internet of Things, blockchain, data, and services [21]. As part of this revolution, the circular economy has become prominent as a sustainable solution that focuses on the recovery of manufacturing systems, where products are reused or recycled after the end of their lifespan, which leads to creating value from discarded products, improving used products, and using renewable energy to achieve sustainability [22].
Digitalization is particularly transforming logistics; manufacturing and logistics have to be integrated to allow a rapid supply responses, and this process is well known as the digitalization of logistics [23]. As an outcome, infrastructure, and processes are essential for the feasibility of digitalizing records using blockchain technology [23], which can make logistics more technically savvy and environmentally friendly.

2.4. Blockchain and Supply Chain Management (SCM)

The SCM performance is evaluated based on inventory turnover, shipping times, and the cash-to-cash cycle time [24]. As we entered Industry 4.0, the latest form of supply chain to emerge is the DSC model. This model offers advanced operational management, real-time data, transparency, and physical and virtual supply chains [25]. However, implementing blockchain in the supply chain poses several challenges, including technology, cost, governance, regulation, awareness, and education [26]. The standard logistics objective is to minimize total system costs, and transportation costs are charged to the destination subsidiary [27]. The good news is that blockchain could help improve supply chain visibility, automate document processing, and reduce costs. For example, the CargoX bill of lading is issued immediately and sent to the legal owner, saving time and money on courier costs [28]. To give you a better picture, Figure 1 shows global logistics costs by function and status in 2018. As you can see, minimizing these costs is crucial for businesses. With the help of blockchain, firms can improve their SCM performance, which is essential for meeting customer demands and staying competitive in Industry 4.0.

2.5. Blockchain in Industry 4.0 within the Circular Economy

The world was struggling to fix critical IT and OT systems. However, there was hope in the form of blockchain technology. This revolutionary technology could provide traceability, transparency, and accountability [29]; the blockchain is a key element in digitalized supply chains and is part of the Industry 4.0 enablers. It allows data to be stored, analyzed, and shared in real time, which offers quality for digital communication and makes contact between physical and digital elements in the supply chain [25].
Moreover, blockchain technology can help circular economy networks by empowering traceability and transparency, reducing transaction costs, and enhancing security through decentralization [30]. This technology’s potential in logistics and SCM was evident, but it required the usage of smart contracts [31], which are automated digital contracts that encode transaction terms in computer code and are automatically executed by the software upon receipt of specific input [32], and the smart contracts can be programmed and executed on distributed ledger technology to automate actions based on certain conditions and events, such as courier delivery [33]. Moreover, these types of contracts automate processes transparently, immutably, and in a decentralized manner, and they can retrieve data from external sources and execute based on predefined conditions. These advantages make them an attractive option for automation [34] with no human intervention required [31], which encourages the firms to have utilized automation as well as blockchain technology to enhance supply chain and delivery processes, taking into consideration initiatives like RFID tracking, delivery schedules, and last-mile parcel delivery [35].
Employing advanced information technology in logistics solutions lays out customers with courier services, which are the final phase of the e-commerce supply chain [36]. The use of technology has led to significant improvements in various aspects of courier services such as promptness, the precision of order fulfillment, the quality of information, and personnel availability and caliber [37], which leads to the adoption of integrating blockchain technology and smart contracts to ship packages between sellers and buyers [38], which could revolutionize the delivery process. However, instances of fraudulent activities have the potential to occur at various stages throughout the supply chain, including but not limited to production, processing, packaging, and transportation. Thus, the blockchain technology’s traceability, security, transparency, and smart contract capabilities are promising solutions for addressing critical points in SCM [39], as the traceability in SCM refers to the ability to obtain detailed information related to any element in the supply chain [40]. In addition, blockchain’s traceability is based on a chronological record of transactions, with each block linked to the prior one using cryptography, creating a historical record [39]. This empowers the tracking and identification of products, parts, and materials in the supply chain while also guaranteeing privacy, interoperability, and transparency [41].
Growing e-commerce has led to an enhancement in courier services, and issues such as delayed delivery and receiving the wrong product can outcome in poor user experiences [42], However, the blockchain can be set again and differently while maintaining the actual data, and all full nodes rely on the same blockchain maintained by each full node to ensure the security of the network [43], This is due to each block in the blockchain being linked to the previous block using a unique cryptographic signature or hash [44].
The benefits of using blockchain technology in supply chains are eliminating intermediaries, achieving network consensus without trust, and ensuring data integrity and immutability [45]. Blockchain has potential benefits for logistics, but only 1% of CIOs have deployed it. More firms are interested in using blockchain to enhance supply chain transparency and investigate illegal or unethical practices [46]. Figure 2 shows the benefits blockchain in the courier supply chain.
Table 1 shows the source (key reviewed articles) used in the literature review.

3. Materials and Methods

The methodology goal is to cover a comprehensive and systematic investigation of the effect of blockchain on courier supply chains, understand the role of digitalization, and determine how it contributes to Industry 4.0 within the circular economy. The methodology has been divided into several steps, which are outlined below.

3.1. The Nature of Research

The research is a qualitative study [50] that aims to explore the influence of blockchain technology on the courier supply chain of a logistics firm and develop a conceptual framework for its application in courier services. This study uses a descriptive and analytical methodology, using primary data and secondary data, carefully considering and focusing on the possibility of traceability, security, transparency, and smart contracts in logistics services firms to obtain an in-depth understanding of the experiences and expertise of the participants regarding the use of blockchain in logistics services. This research contributes to the literature on blockchain technology in logistics by identifying emerging topics and patterns.

3.2. Research Design

The research uses a mixed-methods approach, featuring qualitative and quantitative methods. This approach enables a comprehensive understanding of the research topic. The scope of research covers different regions and different company sizes.
The purpose of the literature review is to search for current studies on digitalization, blockchain, and Industry 4.0, as well as the circular economy related to courier supply chains. The sources used are all from peer-reviewed journals, books, industry reports, and interviews. Then, we summarized the important findings to identify gaps in the literature and build a theoretical framework. Secondary data have been gathered from industry reports related to the logistics, technology, and courier industry and prior literature. Primary data have been gathered through interviews with industry experts including managers and owners from courier companies, blockchain technology providers, logistics companies, and policymakers. For the case study, a few companies have been selected that use blockchain and digitalization initiatives in their supply chains, focusing on challenges, solutions, and outcomes.
The research examines the influence of blockchain technology on courier logistics through using both secondary and primary data [51]. Secondary data are obtained from various sources, including websites and newspaper articles, and analyzed through an extensive review of published works [52]. A case study approach is used [53], focusing on a leading courier firm that applies blockchain technology in its logistics operations. Primary data are gathered via structured interviews with 22 managers in the firm, who were chosen for their expertise in supply chain couriers. The research goal is to develop a conceptual framework [54] for blockchain technology in courier logistics and investigate the potential advantages of adopting blockchain technology from a quality perspective in courier services as well as the role of blockchain application in Industry 4.0 within the circular economy. The study confirms its reliability through the same approach of questioning and coordination with the firm coordinator.
This research consulted many academic papers and articles for secondary data and then aggregated them to define the main themes. Another thing the researcher explored is background data from websites and journal articles, which provide a thorough understanding of the organization and contextualize case studies and process development. These documents are supported in inquiries about interviews. Secondary data were analyzed after a thorough review of peer-reviewed articles and published research papers. For raw data, the case study method is a rich resource for investigating complex emerging phenomena [55]. A case study type is used in this study, which includes the study of the location to gain an in-depth understanding of blockchain technology in courier services. The primary source of raw data is collected via a semi-structured questionnaire, which is the most powerful primer tool in a case study context. It allows a deep understanding and interpretation of sustainability from a quality perspective in applying blockchain in courier services. In addition, we also explain the understanding and practices of the interviewed managers and their strategic aspirations to benefit from this application.
Selecting suitable literature is very important to base research on understanding the related knowledge and define gaps that research should address. The main criteria for literature selection are outlined below:
  • Literature should be relevant to the study goal and include words such as blockchain technology, digitalization, Industry 4.0, and circular economy.
  • Literature that focuses on the relationship between blockchain applications and supply chain management in the logistics and courier industry.
  • Previous studies related to digital transformation in courier and logistics services use technologies such as big data analytics, IoT, and AI.
  • Studies related to integrating advanced technologies in industrial operations, particularly in logistics and supply chains.
  • Articles connecting blockchain adoption and digital technologies with sustainable practices and circular economy concepts in supply chains. Moreover, the sources should be quality and credible such as peer-reviewed academic journals related to information systems, supply chain management, and industrial engineering.
  • Recent articles within at least 5–10 years to ensure the current information, especially about digitalization and blockchain.
  • Select studies that provide insights into the global experience about the influence of blockchain and digital technologies on supply chains, particularly addressing the courier industry, logistics, and SCM research papers.
  • Using diverse methodologies, quantitative (statistical analysis) and qualitative (case studies), as well as including both theoretical and empirical research papers.
  • Choosing related articles such as economics, environmental science, and computer science to study the effect of technology on supply chains from different viewpoints.
Finally, it included studies on risks, limitations, challenges, limitations, and risks related to the influence of digitalization and blockchain on supply chains, including different stakeholders’ viewpoints such as owners, managers, academicians, and policymakers who understand the influence of these technologies.

3.3. Case Selection

Several firms implementing blockchain technology in their supply chains to which they can access is limited. This case includes two effective logistics firms in applying blockchain in courier services in SCM. The case selected is based on access to and face-to-face interviews [56] with their managers who have implemented blockchain technology and have real potential to apply blockchain technology along their supply chains for high-quality service. Hence, this research has selected one main case [53]. These entities are active in the field of courier services in Jordan with at least eight years and twelve years of experience in the field of courier and technology applications like blockchain technology within the firms in Jordan. This research uses the case analysis unit by interviewing 22 managers [57] within the firms: the IT managers, logistics managers, supply chain managers, courier managers, operations managers, heads of business, marketing managers, quality assurance managers, CFOs, customer service managers, and transportation managers [58]. Each manager was assigned a 20-min question-and-answer interview over a month to gather data from managers from each, relating to tasks within their roles and functions to improve reliability [59]. The managers are experts in both the supply chain and courier activities fields, which enables achieving safe and transparent service and achieving better service and sustainability for customers. Before the interview, the target managers in the firms were informed of the study’s objectives and contacted for confirmation about conducting the research. These standardized open-ended interviews [60] were then suggested to be in the firms’ locations. Candidate participants were selected based on their knowledge of the subject, job responsibilities, and the researchers’ viewpoint related to managers’ ability to give relevant information. A research program including both interview protocols as well as reporting procedures was followed [61].

3.4. Data Collection

This research used three different sources for each case study: sustainability reports for secondary data, semi-structured interviews for the primary data, and literature reviews. The research collects primary data through structured face-to-face interviews [57] with 22 managers from a logistics firm with experience in postal management, rapid supply chain, technology adoption, and blockchain implementation. The face-to-face interviews were 20 min each, recorded [62] and focused on the influence of blockchain technology on traceability, security, transparency, and smart contracts in a firm’s courier supply chains. Secondary data [63] were obtained from articles, published books, and previous research mentioned in the references section. The research uses a structured interview approach with literature reviews and case studies [64] incorporating purposive sampling. The study was conducted in Jordan in 2023, and 22 were conducted with managers involved in blockchain applications in transportation firms with the same interview protocol used for all participants. Notes were taken with the consent of the participant [65]. Accepted interviews were utilized to develop case studies as analyzed via cross-case analysis.

3.4.1. Ethical Considerations

Informed consent was used to inform all interviewees and participants about the purpose of the study and how their data would be used. We maintained confidentiality through not declaring participants’ identities and/or sensitive information. Data were gathered by one researcher and then rechecked and assured by other researchers to minimize researcher bias during qualitative data collection and analysis.

3.4.2. Competence of Interview Participants

Selecting competent interview participants is very important for being able to obtain valuable and reliable data on the influence of blockchain on courier supply chains, digitalization, and their contributions to Industry 4.0 within the circular economy. As indicated in Table 2, the following competencies should be considered while choosing interview participants:
Researchers have industry experience and academic experience. One participant is a Master’s graduate and is a logistic manager and supply chain analyst in the courier industry and has extensive experience in logistics and supply chain management, particularly within the courier sector. He knows the roles and regulations such as logistics managers, supply chain analysts, and operations directors. Another participant is has earned a PhD in business, worked as an academic professor at the time of the interview, and previously worked as a general manager of a pharmaceutical company. The third participant is a professor of E-business and works as a dean of a business college. The fourth participant is a PhD holder and working as the head of a university director board, and the fifth and last one is an associate professor in business accounting. All participated and cooperated to develop, implement, and control the research steps and collected data. While interviewees (owners and managers) were professionals and experts in blockchain technology and its implementation in supply chains, and had strong backgrounds in digital transformation as either owners or high-level executives, all interviewees were involved in day-to-day practices and knew about the challenges and benefits of technology adoption. Some of them were technical such as blockchain engineers, data analysts, and cybersecurity experts. The project leader was a professor holding a PhD and dean of the E-business college and has experience and detailed knowledge of the processes, challenges, and outcomes. During the first phase pilot test, a few selected owners and managers had extensive experience in blockchain applications in courier supply chains, had a good understanding of Industry 4.0 concepts, and were knowledgeable about circular economy practices, blockchain, and how digital technologies contribute to sustainable supply chains. Data were gathered from multinational courier companies that specialized in logistics with high experiences in dealing with challenges.
Finally, participants were knowledgeable about the regulations governing blockchain and digital technologies, and they understood legal and compliance challenges. The study was carried out by scholars, practitioners, and researchers who specialized in supply chain management, blockchain technology, digital transformation, and sustainability.

3.5. Data Analysis

Thematic analysis was used to analyze interview transcripts and qualitative survey responses to identify themes and patterns related to blockchain’s impact, digitalization challenges, and contributions to Industry 4.0 and the circular economy. Also, content analysis systematically categorizes and analyzes content from case studies, focusing on implementation strategies, technological integration, and outcomes. To ensure validity and reliability, we used a triangulation approach, i.e., multiple data sources (literature review, interviews, case studies) to ensure validity and reliability. Pilot testing was conducted with interview guides to refine questions and ensure clarity and relevance.
The analysis of data in this research included potential uses of blockchain technology in the courier industry to develop key results and propose a framework. Five steps were applied for data analysis [66]. First, important topics were identified from the literature review, allocating subtopics, and follow-up related themes [67]. By comparing interviews with each other, to find commonalities and strengthen them [68], and through the research questions presented, data were collected from the managers’ interviews and analyzed, and interpretations of the results was developed to verify the validity of the framework [69] associated with traceability, security, transparency, and smart contracts. This study showed that blockchain technology has potential uses in optimizing source traceability, minimizing fraud and fakes, and enhancing inventory management [70]. This technology offers a secure, transparent, and decentralized platform to track and verify transactions in real time in addition to overcoming traceability, security, and transparency challenges. The main results are used to develop a conceptual framework [50]. Logistics firms have confidence that blockchain technology can reduce costs, enhance efficiency, and increase the overall customer experience in SCM. Generally, the study suggests that blockchain technology can be a valuable tool in courier firms to address SCM challenges and improve operational efficiency.

The Articulation of Technical Challenges

Articulating the technical challenges in adopting blockchain and digitalization in courier supply chains, especially in the context of Industry 4.0 and the circular economy, is very important to understand the limitations, barriers, and technical challenges such as the following:
  • Scalability and performance issues such as transaction speed and throughput: Blockchain networks may suffer from slow transaction speeds and limited throughput.
  • Data storage and management: The stability of blockchain may cause data storage problems, such as transaction volume increases, so storing and managing data efficiently can be challenging.
  • Compatibility and integration: The integration of blockchain with current digital systems and platforms in courier supply chains is complex, so it may need changes in old processes and systems.
  • Compatibility: Standardization is needed across several blockchain platforms for them to be compatible.
  • Privacy and security of data v. confidentiality: Balancing between transparency and data privacy and confidentiality is a key challenge.
  • Cybersecurity Threats: Blockchain technology is vulnerable to different cybersecurity threats.
  • Energy consumption and environmental effects: Blockchain networks consume substantial amounts of energy, which have environmental issues, especially in a circular economy context.
  • Regulatory and compliance challenges: The regularity of blockchain technology is evolving, creating new challenges for its adoption. Legal enforcement of smart contracts varies across different countries related to international courier supply chains.
Still, there is a gap in technical skilled people and expertise in blockchain technology, which limits its adoption in courier supply chains. Therefore, companies need to invest in training and developing employees’ knowledge and skills regarding blockchain and other digital technologies.
Implementing blockchain technology includes high costs and investments in people, software, and infrastructure. Therefore, measuring ROIs from such technology is a challenge.
The scalability of blockchain networks is another challenge. Matching with the increasing number of users and transactions creates many technical challenges for global courier supply chains. Finally, the response speed and bandwidth limitations for real-time data sharing and transactions are very important for the courier services industry
To handle these challenges, there should be high cooperation among industry stakeholders, technology developers, policymakers, as well as academic researchers.

4. Results and Discussions

4.1. The Benefits of Implementing Blockchain Technology in Courier Services in the Logistics Industry

The director of business in the firm (A) mentioned “There are many challenges in their courier supply chains in terms of traceability, security, transparency, and smart contracts which are lack of real-time visibility and transparency, inefficiency and error-prone manual processes to security threats such as theft, fraud, and complexity in implementing smart contracts. Applying blockchain technology supports them in overcoming such challenges by improving real-time visibility, boosting security features such as immutability and encryption, as well as, process automation via smart contracts. Generally, blockchain technology can revolutionize the logistics industry and bridge the gaps and inefficiencies in the current supply chain system”.
The director of business in firm (B) stated “The major challenges faced by courier supply chains that are related to traceability, security, transparency, and smart contracts, in addition to the absence of real-time visibility and transparency, traditional supply chain errors, and security threats”. He also stated that “blockchain technology offers real-time visibility and transparency, and features support security attributes and automation of supply chain processes, concluded and said that the benefits of implementing blockchain technology include cost savings, increased efficiency, improved customer satisfaction, and a competitive advantage for logistics firms”.
The results presented that 22 managers desired a joint operations management strategy to ensure the benefits of applying blockchain technology and smart contracts in the courier supply chain. as this technology can improve traceability [71], efficiency [72], and security [13] by offering transparency and immutability that enables the real-time tracking and monitoring of goods [73], minimizing the risk of fault, fraud, and theft. Smart contracts automate aspects of the supply chain, minimizing costs [74] and improving accuracy [75].
The CFO of the firm (A) mentioned, “Even though blockchain technology has the potential to optimize transparency, security, and efficiency, it requires a big initial investment to implement it, and it may also require training employees and partners on how to use and properly understand blockchain technology. In contrast, implementing blockchain technology achieves feasibility in the long term for large firms especially, which is why a comprehensive cost–benefit analysis is essential. Therefore, the using of blockchain technology successfully leads to achieving a competitive priority and meets customer requirements”.
Although there are many advantages, several challenges should be noted, like interoperability [76], data privacy, standardization [77], and security. To overcome these challenges, organizations in the logistics industry have to collaborate and invest in improving blockchain network security and demonstrating to stakeholders the advantages and blockchain technology risks.
The customer service manager in firm (B) mentioned: “I assure you that the usage of blockchain technology in the supply chain of courier logistics improves customer satisfaction and loyalty, and enhances transparency in tracking systems, improving security, stop theft and fraud, reducing costs, speed delivery, and rise efficiency via manual processes automation”.
The outcome of this study demonstrates that blockchain technology can revolutionize the logistics industry by enhancing both trust and transparency and trust among players [47], minimizing costs, and increasing efficiency. Noting regulatory issues and stakeholder resistance is critical in applying blockchain technology in the logistics industry; Table 3 demonstrates the relationship between themes and results of blockchain usage in the courier’s field in the logistics industry.
Table 4 demonstrates the introduction scores based on the percentages (100%) of each main benefit that was focused on from the point of view of the managers, according to their job, which ranges from 1 to 6, depending on the analysis outcomes of the interviews that were conducted with each manager separately.

4.2. The Role of Blockchain Technology in Industry 4.0 within the Circular Economy

The firm’s logistics manager (A) said about the role of blockchain in Industry 4.0 with the circular economy “that using the blockchain enabled the firm to track the movement of goods and materials, from the point of origin to the destination, with complete transparency and security. It also helped us improve its sustainability practices by reducing paperwork and thus waste, optimizing the use of resources, and reducing environmental impact, which plays an important role in the fourth industrial revolution and the circular economy. In addition, implementing the blockchain has strengthened the cooperation between all supply chain partners, which has led to the development of new business models and innovative solutions that contribute to achieving the goals of the circular economy”.
The integration of technology and the physical world in manufacturing characterizes Industry 4.0, which has expanded to logistics and SCM in recent years, and it is used to intelligently connect products and processes along the value chain to improve organizational efficiency and create innovative products and/or services that enhance customer value [78]. The courier supply chain is one area that is significantly impacted by Industry 4.0, [79] particularly using blockchain technology and smart contracts. Such technologies optimize the security, transparency, and efficiency of the supply chain by offering resistance to tampering and can audit transaction records, automate specific processes, and maximize accountability. In addition, technologies such as GPS tracking, transparent packaging, and security seals are used to ensure the security of the goods being transported. Industry 4.0 also has a positive influence on the circular economy [80]. Optimizing the traceability and transparency of goods helps reduce waste in the supply chain. So, adopting new technologies such as smart contracts and blockchain empowers firms to remain competitive in a growingly digital and connected world [49].
Table 5 shows the subtopics to be linked to its results for the role of the blockchain in the courier’s services in the logistics Industry 4.0 within the circular economy.
Table 6 and Table 7 show the scores provided based on the percentages (100%) of the role of the blockchain in Industrial 4.0 and the circular economy from the point of view of each manager according to his job, which ranges from 1 to 6, based on the findings of the analysis of the interviews conducted with each manager separately.

4.3. Approaches and Features of Blockchain Technology in Courier Services in the Supply Chain within the Circular Economy in Industry 4.0

The key findings have provided a management and technical approach for the development of blockchain technology in courier services [70]. The study suggests that blockchain technology offers transparent, traceable [81], and forgery-proof solutions to the traditional complexities and challenges of courier services, including tracking and delivery over time, costs, and the possibility of fraud [82]. The increase in online purchases increases the demand for courier services, and this may make the consumer lose confidence. To improve demand, decision-makers have to support the internal team specialists to develop both logistics services as well as green marketing during blockchain implementation [83] by reducing the negotiation requirements and taking off intermediaries [84]. The research also points out that smart contract technology, security seals, tamper clear packaging, and GPS tracking enhance courier supply chain efficiency, security, and transparency. In addition, digitalizing the courier supply chain by using blockchain technology supports the logistics industry’s digital transformation as well as develops the networks of the circular economy. It also improves traceability and transparency, minimizes transaction costs, and supports security via blockchain decentralization. Finally, using blockchain technology in the logistics industry improves supply chain security, efficiency, and transparency, which is very important for the success of logistics industry in the Industry 4.0 age [78].

4.4. Toward a Conceptual Framework of Blockchain Technology in Courier Services in Supply Chain

The conceptual framework was built by performing a comprehensive literature review and interviews to investigate the advantages of adopting blockchain technology [30,34] The framework focuses on the role of blockchain technology in empowering Industry 4.0 [17] and the circular economy [6]. The proposed framework includes automation that supports blockchain technology belonging to the fourth industry and it stresses the possibilities of blockchain technology in courier services [17]. Specifically, this is achieved through smart contracts, which are compatible with Industry 4.0 goals, such as optimizing visibility and transparent real-time monitoring [73], to accomplish significant value by leveraging technology to minimize waste and maximize energy efficiency in the supply chain [30]. This is in line with the circular economy goals of minimizing waste and encouraging material reuse and recycling, and the blockchain technology team can contribute to conducting these goals by minimizing paperwork and labor handling as well as optimizing circular transparency and traceability throughout the supply chain [30]. Organizations utilize blockchain-based tracking and monitoring systems to improve information details and accuracy [40].
In addition, the current research presents empirical evidence about the advantages of blockchain technology implementation in the logistics industry and its influence on the performance of courier service and its sustainability [22]. The research’s conceptual framework demonstrates the relationship between blockchain characteristics and sustainability performance in the circular economy. Lastly, the research provides an understanding of how blockchain technology enhances confidence between consumers and service providers and increases the circular economy.
Additionally, this study offers results on how blockchain technology can build trust between customers and service providers and contribute to enhancing the circular economy. This study also highlights how blockchain technology has been recently decentralized to build speed-growing channels for courier services. Generally, this study contributes to a deeper understanding of the possible benefits of blockchain technology in the logistics industry, especially in courier services, and its role in moving forward with Industry 4.0 and sustainability [13,38,71,73] has been used to illustrate previous research on blockchain technology-based logistics applications.

5. Conclusions

5.1. Conclusions

This study disclosed key results on the benefits of blockchain technology in the courier services sector for the supply chain of the logistics industry in Industry 4.0 within the circular economy. Empirical data were collected to address the study objectives and current questions. The results disclosed that blockchain technology can offer significant benefits to logistics firms by optimizing security, traceability, and transparency as well as minimizing cost, increasing efficiency, and saving time. A conceptual framework was developed, which comprises crucial elements, such as encryption, distributed databases, smart contracts, and RFID technology, to guide logistics firms in implementing blockchain. The study defined the functional values of blockchain and its potential use cases in courier services. Through a theoretical analysis of the benefits of proprietary technology in couriers, the researchers identified at least 34 benefits of blockchain technology, which can contribute to Industry 4.0 in automating processes, and its integrability with other technologies that are involved in Industry 4.0 within the circular economy, achieving the main goals such as the sustainability and environmental responsibility as well as coordination and collaboration. The research can provide valuable insights for scholars and decision-makers in logistics services to ensure good customer service and transparency. Figure 3 illustrates the new conceptual framework developed in this study, which outlines blockchain technology’s benefits, approaches, features, and sustainability performance in courier services. Digital courier service is important, as a digital supply chain is described as “a better fit intelligent technology system based on the ability to weed out big data and the excellent collaboration and connectivity of hardware, software, and networks to aid and synchronize the interaction among organizations by supporting services to be more accessible and valuable. At the same time to be affordable, accessible with more effective, agile, and consistent results” [85].

5.2. Practical Contributions

The present research offers practical contributions to managers involved in the supply chain, particularly those operating in courier services who were interviewed during the study. The newly developed conceptual framework offers guidance for shaping and describing blockchain technology applications between different operations along a logistics firm’s courier service, which is based on current and potential uses of blockchain technology as an emerging technology that provides industry benefits and contributes to Industry 4.0 in the circular economy context. To enhance blockchain technology applications and sustainability in courier services, decision-makers need to develop approaches and features that ensure high-quality provision and competitive services in the market while linking blockchain technology benefits to service performance and sustainability. Key results from this research, along with the new framework, can assist decision-makers in planning supply chain programs globally and adopting changes required using blockchain technology in courier services. This study reveals that corporate players, technology providers, and government agencies are making pragmatic decisions and learning about blockchain technology adoption.
This research applies the study’s results to the courier services in the logistics industry, providing insights from the operational and business perspectives to apply blockchain technology as a technological application of Industry 4; it directly serves the circular economy and achieves its goals in approved courier services. The study helps managers control and manage performance, enhance decision-making, and perform sensitivity analysis. Integrating these benefits in the new framework helps managers analyze their needs for blockchain features and approaches, reducing costs and improving the quality of service to customers while being sustainable in the context of digitization and online commerce. The proposed framework also identifies performance indicators that most influence business performance, enabling practitioners to update information about different types of required benefits and manage their supply chain. However, this research has limitations, indicating the need for further qualitative or quantitative studies to test the conceptual framework through large-scale surveys on multiple logistics firms, including cross-sectional and longitudinal studies on supply chains as a comparative study. The study concludes by recommending further research to address stakeholder resistance and regulatory issues and explore blockchain technology’s potential in other logistics areas.

5.3. Theoretical Contributions

This research paper investigates the transformative impact of blockchain technology on the digitalization of courier supply chains, showing blockchain technology’s role in advancing Industry 4.0 principles and boosting the circular economy. By integrating blockchain, courier supply chains can enhance transparency, traceability, and efficiency as well as address key challenges such as counterfeit goods, delays, and inefficiencies. This paper discusses the theoretical underpinnings of blockchain technology, its implementation in supply chains, and its potential contributions to a more sustainable and resilient circular economy.

6. Limitations

This research investigated the influence of blockchain technology on the digitization of courier supply chains via interviews with 22 managers of two logistics firms that have already implemented the blockchain in their operations. The study was limited to two logistics firms; the firms also required that the search be conducted without disclosing their names, and only managers’ views were considered, excluding other stakeholders such as suppliers or owners. Additionally, the lack of time was a constraint for interview appointments and the completion of the research. However, despite the mentioned limitations, this study still provides a valuable vision of the possible impact of blockchain technology on courier supply chains in assisting Industry 4.0 within the circular economy and identifies areas for further research and investigation. Although this study had limitations, it still offers significant insights into the potential impact of blockchain technology on the supply chain and certain areas for further research.

7. Future Research

This study suggests that future research should include large-scale surveys and include a comparative study of the relationship between blockchain technology throughout short and long supply chains in Industry 4.0 within the circular economy, including the last mile, courier service. In addition, it is also suggested that future research take into consideration the relationships between all actors involved along the supply chain, including various local and international partners. Finally, the study indicates that there is a need for further research on blockchain technology in circular economies within the context of emerging economies. It is recommended to collect more data about this topic to reinforce the study results.
This research investigates blockchain’s influence on courier supply chains within Industry 4.0 and the circular economy, focusing on smart contracts, transparency, traceability, and security. It identifies gaps and assesses blockchain’s advantages, aiming to align with the circular economy for sustainability by improving these key areas and digitalizing processes without intermediaries. The qualitative study develops a conceptual framework for blockchain in courier services, using data from interviews with 22 managers and secondary sources. Data analysis revealed blockchain’s potential to enhance traceability, reduce fraud, and improve inventory management, supporting the development of a conceptual framework to reduce costs, enhance efficiency, and improve customer experience. The literature review explores blockchain as a distributed ledger system enhancing SCM through secure transactions and digitalization, aligning with the circular economy. It underscores the benefits of real-time data, transparency, and automation in SCM. The study found manager support for blockchain and smart contracts to improve traceability, efficiency, and security while addressing regulatory and stakeholder challenges. Blockchain’s integration in Industry 4.0 optimizes supply chain operations and supports the circular economy by reducing waste. The research demonstrates blockchain’s potential to revolutionize logistics, advancing Industry 4.0 and sustainability.

Author Contributions

Conceptualization, R.M., M.J. and A.-A.A.S.; Methodology, M.J. and A.-A.A.S.; Software, M.J., A.-A.A.S. and A.M; Validation, M.J., A.Y.N. and A.M.; Formal analysis, R.M., M.J. and A.-A.A.S.; Investigation, R.M., M.J., A.-A.A.S. and A.Y.N.; Resources, R.M., M.J., A.-A.A.S. and A.M.; Data curation, A.M. and A.-A.A.S.; Writing—original draft, R.M., A.M. and A.-A.A.S.; Writing—review & editing, R.M. and A.Y.N.; Project administration, R.M. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Not applicable.

Data Availability Statement

No new data were created or analyzed in this study. Data sharing is not applicable to this article.

Acknowledgments

Thanks to Jordan University and Middle East University.

Conflicts of Interest

The authors declare no conflicts of interest.

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Figure 1. Logistics cost. Source: Adapted from Armstrong & Associates Inc.
Figure 1. Logistics cost. Source: Adapted from Armstrong & Associates Inc.
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Figure 2. Benefits of blockchain. Source: Cloud Credential Council.
Figure 2. Benefits of blockchain. Source: Cloud Credential Council.
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Figure 3. Study conceptual framework.
Figure 3. Study conceptual framework.
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Table 1. Reviewed articles.
Table 1. Reviewed articles.
ArticleAuthorPublisher
“Blockchain-integrated technologies for solving supply chain challenges”[15]Emerald insight
“Blockchain in the logistics industry: in fizz customer trust or not”[47]Emerald
“How Blockchain Affects Supply Chain Performance”[34]Emerald insight
“Industry 4.0 and digital supply chain capabilities: A framework for understanding digitalisation challenges and opportunities”[48]Emerald insight
“Logistics 4.0: SCM in Industry 4.0 Era (Changing Patterns of Logistics in Industry 4.0 and Role of Digital Transformation in SCM)”[5]Taylor Francis
“Blockchain technology applications for Industry 4.0”[49]Elsevier
“Industry 4.0 and digital supply chain capabilities”[48]Emerald
“Applications of emerging technologies in the logistics sector for achieving circular economy goals during COVID-19 pandemic”[22]Taylor Francis
“Industry4.0 and circular economy practices”[6]Wiley
“Blockchain technology and the circular economy: Implications for sustainability and social responsibility”[30]Elsevier
“Blockchain-Enabled Supply Chain Traceability in the Textile and Apparel Supply Chain: A Case Study of the Fiber Producer, Lenzing”[39]MDPI
“Applications of Blockchain Technology in Logistics and Supply Chain Management—Insights from a Systematic Literature Review”[45]MDPI
“Blockchain, and Industry 4.0 as Elements of Management Process in Enterprises in the Energy Sector”[17]MDPI
“An exploration of blockchain technology in supply chain management”[31]University of Cambridge
“Blockchain technology for bridging trust, traceability, and transparency in circular supply chain”[2]Elsevier
Table 2. Data collection for a case study.
Table 2. Data collection for a case study.
Method TypeSource Type Each ManagerFirm (A)Firm (B)Total
Semi-Structured Interview1. IT Manager 11
2. Logistics Manager11
3. Supply Chain Manager11
4. Courier Manager11
5. Operation Manager11
6. Head of Business11
7. CFO11
8. Marketing Manager11
9. Quality Assurance Manager11
10. Customer Service Manager11
11. Transportation Manager1122
Blockchain impact on supply chain articles and reportsAvailable on websites -Available via academic engines 35
Industry 4.0 articles and booksAvailable on websites -Available via academic engines 20
Circular economy articlesAvailable on websites -Available via academic engines 2075
Table 3. The benefits of implementing blockchain technology in courier services in the logistics industry.
Table 3. The benefits of implementing blockchain technology in courier services in the logistics industry.
Sub-HeadingKey Benefits
Reasons for managers in logistics firms1. Increased Efficiency
2. Improved Traceability
3. Enhanced Security
4. Reduced Costs
5. Increased Trust
Common strategies in logistics firm1. Collaborating with Partners
2. Implementing Smart Contracts
3. Enhancing Visibility
4. Integrating with Existing Systems
5. Embracing Innovation
Third-party players for logistics firms1. Expertise
2. Interoperability
3. Standardization
4. Data Privacy
More customers for logistics firms1. Increased demand
2. Increased trust
3. Greater transparency
4. Improve traceability
Situation and sustainability 1. Reduced environmental impact
2. Increased collaboration (reduce emissions and air pollution)
3. Improved efficiency (reducing waste)
4. Digitization
Quality Service for the customer1. Cost savings
2. Real-time delivery
3. Time-saving
4. Transparency
5. Traceability
Table 4. Scores of benefits.
Table 4. Scores of benefits.
The Main Points Focused onParticipants in the Interviews
Architecture and design18%
Appropriate blockchain platform and consensus mechanism9%
Integration with existing logistics and supply chain management (SCM) systems45%
Safety and security64%
Data privacy55%
Smart contract development and implementation36%
Scalability and performance optimization55%
Interoperability with other blockchain networks or legacy systems36%
Compliance with regulatory requirements and standards36%
Training and education for employees and stakeholders36%
Real-time traceability 82%
Accountability55%
Transparency82%
Automation82%
Collaboration with partners45%
Training and education45%
Visibility45%
Planning and scheduling55%
Time-saving55%
Efficiency73%
Cost saving55%
Decision making64%
Compliance with regulatory requirements and standards45%
Reduce errors and disputes in the supply chain55%
Accuracy and reliability64%
Leading to faster and more accurate deliveries and better customer service64%
Customer experience and satisfaction55%
Development of new products and services27%
Competitive advantage in the market45%
The initial investment in blockchain technology can be significant18%
Increased revenue growth over the long term36%
Reduce fraud45%
Streamlined payment processing27%
Management and optimization82%
Table 5. The role of blockchain technology in Industry 4.0 within the circular economy.
Table 5. The role of blockchain technology in Industry 4.0 within the circular economy.
Sub-HeadingKey Benefits
Blockchain and Industry 4.0 1. Providing secure and transparent data sharing between machines
2. Enabling more efficient and automated supply chain management (SCM)
3. Facilitating decentralized and autonomous
4. Enhancing the security and privacy of sensitive data
5. Supporting the development of new business models
6. Enabling the creation of digital marketplaces for goods and services
Blockchain and Circular Economy 1. Tracking and verifying the origins and movements of products and materials
2. Enabling the creation of decentralized marketplaces for recycled or repurposed goods
3. Facilitating the exchange of renewable energy certificates
4. Providing transparent and secure payment systems for sustainable logistics services
5. Enhancing the traceability and transparency of waste management processes
6. Encouraging collaboration and data sharing between stakeholders in the circular economy
Table 6. Score of the role of blockchain in Industry 4.0.
Table 6. Score of the role of blockchain in Industry 4.0.
Main Points Focused on (Industry 4.0)Participants in the Interviews
Enables secure and transparent tracking of products and materials throughout the supply chain.82%
Improves supply chain efficiency and reduces costs.64%
Provides a tamper-proof ledger for tracking and auditing purposes.73%
Facilitates the creation of a circular economy through digital tokens and blockchain-based marketplaces.82%
Improves efficiency and reduces waste in logistics operations.27%
Increases efficiency and reduces delivery times in courier operations.45%
Enables new revenue streams and business models.27%
Table 7. Score of the role of blockchain in the circular economy.
Table 7. Score of the role of blockchain in the circular economy.
Main Points Focused on (Circular Economy)Participants in the Interviews
Enables transparent and secure tracking of resources and materials in the circular economy.82%
Facilitates the creation of digital tokens for trading and incentivizing circular practices.73%
Enables real-time tracking of material flows and product life cycles for better decision making.73%
Provides a tamper-proof ledger for tracking and auditing purposes.82%
Improves supply chain efficiency and reduces costs.64%
Enable trust in circular economy transactions.36%
Facilitates the creation of new business models and revenue streams in the circular economy.27%
Collaboration and coordination between different stakeholders in the circular economy ecosystem.27%
Sustainability and environmental responsibility by enabling better tracking and management of resources45%
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MDPI and ACS Style

Masa’deh, R.; Jaber, M.; Sharabati, A.-A.A.; Nasereddin, A.Y.; Marei, A. The Blockchain Effect on Courier Supply Chains Digitalization and Its Contribution to Industry 4.0 within the Circular Economy. Sustainability 2024, 16, 7218. https://doi.org/10.3390/su16167218

AMA Style

Masa’deh R, Jaber M, Sharabati A-AA, Nasereddin AY, Marei A. The Blockchain Effect on Courier Supply Chains Digitalization and Its Contribution to Industry 4.0 within the Circular Economy. Sustainability. 2024; 16(16):7218. https://doi.org/10.3390/su16167218

Chicago/Turabian Style

Masa’deh, Ra’ed, Mustafa Jaber, Abdel-Aziz Ahmad Sharabati, Ahmad Yacoub Nasereddin, and Ahmad Marei. 2024. "The Blockchain Effect on Courier Supply Chains Digitalization and Its Contribution to Industry 4.0 within the Circular Economy" Sustainability 16, no. 16: 7218. https://doi.org/10.3390/su16167218

APA Style

Masa’deh, R., Jaber, M., Sharabati, A.-A. A., Nasereddin, A. Y., & Marei, A. (2024). The Blockchain Effect on Courier Supply Chains Digitalization and Its Contribution to Industry 4.0 within the Circular Economy. Sustainability, 16(16), 7218. https://doi.org/10.3390/su16167218

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