Blockchain-Based Digitalization of Logistics Processes—Innovation, Applications, Best Practices

A special issue of Logistics (ISSN 2305-6290).

Deadline for manuscript submissions: closed (30 June 2022) | Viewed by 130908

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Guest Editor
Institute of Production and Operations Management, Brandenburg University of Technology, 03046 Cottbus, Germany
Interests: blockchain; flexibility; robustness; digitization; factory planning; production planning and controlling; supply chain management; simulation
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Special Issue Information

Dear Colleagues,

Blockchain technology is becoming one of the most powerful future technologies in supporting logistics processes and applications. It has the potential to destroy and reorganize traditional logistics structures. Both researchers and practitioners all over the world continuously report about new blockchain-based projects, possibilities, and innovative solutions with better logistic service levels and lower costs.

This Special Issue will collect and publish well-prepared research reports about the recent advances of blockchain technology in logistics processes to provide insights into the realized maturity. All kinds of articles—literature-based, empirical research, case studies—are welcome that cope with innovations, applications, and best practice examples of blockchain-based digitalization of logistics processes.

Authors from all disciplines are cordially invited to submit their papers until 30/6/2022. Exemplary topics could deal with blockchain technology in the following:

  • Procurement and purchasing
  • Intralogistics
  • Logistics networks,
  • Logistics platforms
  • Maritime logistics
  • Automotive logistics

Prof. Dr. Herwig Winkler
Guest Editor

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Keywords

  • Logistics processes
  • blockchain
  • innovation
  • applications
  • best practice
  • industry solutions

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Published Papers (13 papers)

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Research

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17 pages, 2178 KiB  
Article
Blockchain for Ecologically Embedded Coffee Supply Chains
by Hana Trollman, Guillermo Garcia-Garcia, Sandeep Jagtap and Frank Trollman
Logistics 2022, 6(3), 43; https://doi.org/10.3390/logistics6030043 - 24 Jun 2022
Cited by 25 | Viewed by 6954
Abstract
Background: This research aims to identify how blockchain technology could support the ecological embeddedness of the coffee supply chain. Ecological embeddedness is a subset of the circular economy (CE) that demands legitimacy through design changes to product, production and/or packaging for benefits [...] Read more.
Background: This research aims to identify how blockchain technology could support the ecological embeddedness of the coffee supply chain. Ecological embeddedness is a subset of the circular economy (CE) that demands legitimacy through design changes to product, production and/or packaging for benefits to economic actors and the environment. This is in contrast with legitimacy as a public relations exercise. Blockchain is a digital transformation technology that is not fully conceptualized with respect to supply chain implementation and the related strategy formulation, particularly in the context of sustainability. Furthermore, the integration of consumers into the CE remains not well understood or researched, with the main focus of CE being the cycling of resources. Methods: This research employs a qualitative case study methodology of the first coffee business in the USA to use blockchain technology as an exemplar. Gap analysis is then applied to identify how blockchain could be used to advance from the current state to a more sustainable one. Results: Findings indicate that the implementation of blockchain is not ecologically embedded in the example studied. Conclusions: The extension of blockchain technology to consider the by-products of production and valorizable waste throughout the supply chain as assets would support ecologically embedded CE for coffee. Full article
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14 pages, 1011 KiB  
Article
From Traditional Product Lifecycle Management Systems to Blockchain-Based Platforms
by Mubashir Hayat and Herwig Winkler
Logistics 2022, 6(3), 40; https://doi.org/10.3390/logistics6030040 - 23 Jun 2022
Cited by 8 | Viewed by 4193
Abstract
Background: Several product lifecycle management systems (PLMs) have been implemented in the industrial sector for managing the data of the product from the design up to the disposal or recycling stage. However, these PLMs face certain challenges in managing the complex and decentralized [...] Read more.
Background: Several product lifecycle management systems (PLMs) have been implemented in the industrial sector for managing the data of the product from the design up to the disposal or recycling stage. However, these PLMs face certain challenges in managing the complex and decentralized product lifecycles. Methods: To this aim, this work investigates the currently implemented PLMs used in industries through the exploration of various software reviews and selection websites. Accordingly, these existing PLMs are quantitatively compared and analyzed. Results: The analysis shows that most of the existing PLMs do not contain all the required features; therefore, industries integrate different software to create a full-fledged PLM system. However, this practice results in reducing the overall system efficiency. In this context, this paper assesses and recommends a blockchain-based innovative solution that overcomes the challenges of existing PLMs, hence increasing the overall system efficiency. Furthermore, this work argues, in a logical way, that the recommended blockchain-based platform provides a secure and connected infrastructure for data handling, processing, and storage at different stages of the product lifecycle. Conclusions: This work can be considered among the first to compare the currently implemented PLMs with a novel blockchain-based method. Thus, the stakeholders can utilize the outputs of this research in their analysis and decision-making processes for implementing the blockchain in their organizations. Full article
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20 pages, 1110 KiB  
Article
Intra- and Interorganizational Barriers to Blockchain Adoption: A General Assessment and Coping Strategies in the Agrifood Industry
by Horst Treiblmaier, Abderahman Rejeb, Remko van Hoek and Mary Lacity
Logistics 2021, 5(4), 87; https://doi.org/10.3390/logistics5040087 - 7 Dec 2021
Cited by 12 | Viewed by 5746
Abstract
Background: Companies partaking in modern supply chains face numerous intra- and interorganizational barriers when it comes to the adoption of blockchain technology. Empirical research is missing that explores how exactly these barriers can be overcome. In this paper we first explore barriers [...] Read more.
Background: Companies partaking in modern supply chains face numerous intra- and interorganizational barriers when it comes to the adoption of blockchain technology. Empirical research is missing that explores how exactly these barriers can be overcome. In this paper we first explore barriers that organizations need to overcome to successfully deploy blockchain technology. In a second step, we investigate the agrifood industry and highlight differences in coping strategies between incumbents and start-ups. Methods: We conducted a quantitative survey with 190 supply chain experts to identify barriers and an in-depth qualitative study that included 10 expert interviews to better understand the current situation in agrifood organizations. Results: The findings from the quantitative study show that the most relevant organizational barrier to blockchain adoption is the widespread lack of understanding of the technology and its potential benefits. In the qualitative study we illustrate how various intra- and interorganizational barriers can be overcome and how the resources and capabilities differ between incumbents and start-ups. Conclusions: Our results provide academics with a better understanding of the relevant barriers and bridges of blockchain adoption. Practitioners benefit from learning about the resources and capabilities they need to deploy in order to benefit from blockchain technology. Full article
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18 pages, 786 KiB  
Article
Value Proposition Assessment of Blockchain Technology for Luxury, Food, and Healthcare Supply Chains
by Moritz Berneis and Herwig Winkler
Logistics 2021, 5(4), 85; https://doi.org/10.3390/logistics5040085 - 1 Dec 2021
Cited by 12 | Viewed by 5622
Abstract
Background: In relevant research, blockchain technology (BCT) is credited with great potential for supply chain management (SCM). However, even after more than 10 years of the technology’s existence, it is barely used for any self-sustaining applications. This raises the question of why [...] Read more.
Background: In relevant research, blockchain technology (BCT) is credited with great potential for supply chain management (SCM). However, even after more than 10 years of the technology’s existence, it is barely used for any self-sustaining applications. This raises the question of why BC cannot prevail against its alternatives. With this paper we want to identify criteria by which the added value of BCT can be measured. Furthermore, we want to evaluate how well the different supply chains (SC) exploit the added values of BCT. Methods: For this, we identified real-world examples and case studies for luxury, food, and healthcare SCs. These examples are described in detail and then analyzed for their added value compared to possible alternatives. Results: The results show that in the clusters of food and healthcare SCs, no general added value of BC over current best-practice solutions could be verified. Luxury SCs manage valuable products that are typically traded in small quantities. It is within this cluster that the implementation of BC can be justified best. Conclusions: In conclusion, this study shows that the application of BCT is especially beneficial for goods with a high value and low trade volume. In addition, the interface between reality and the digital twin should be as secure as the database or BC solution itself. Furthermore, the demand for transparency and immutability of data should be more important than the need to protect sensitive data. Finally, SC participants, especially the end customer, must also be able to appreciate the advantages of BCT. Full article
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18 pages, 863 KiB  
Article
How Useful Is a Distributed Ledger for Tracking and Tracing in Supply Chains? A Systems Thinking Approach
by Christian Straubert and Eric Sucky
Logistics 2021, 5(4), 75; https://doi.org/10.3390/logistics5040075 - 22 Oct 2021
Cited by 4 | Viewed by 4391
Abstract
Background: The use of blockchain technology for tracking and tracing (T&T) in supply chains is the subject of lively debate in scientific literature. However, distributed ledger technology (DLT) does not have to have the characteristic blockchain structure and often performs better without [...] Read more.
Background: The use of blockchain technology for tracking and tracing (T&T) in supply chains is the subject of lively debate in scientific literature. However, distributed ledger technology (DLT) does not have to have the characteristic blockchain structure and often performs better without such a structure. Generalized DLT for T&T in supply chains has rarely been discussed in the existing literature. Methods: This article presents an exploratory case study research of eight companies to identify the main goals, and problems that the companies have when they engage in T&T. This practical perspective is complemented by a theoretical systems thinking perspective. Based on these two foundations, we discuss the usefulness of blockchain technology and, more generally, DLT for T&T in supply chains. Results: Based on our analysis, DLT is only necessary in special cases, e.g., when the owners of the data have an interest in deleting the data, but the data stakeholders do not. In the other cases examined, DLT competes with other technologies, such as conventional, centralized databases in combination with digital signatures. Furthermore, it became evident that DLT can only be useful for supply chain tracing. The technological features of DLT do not provide any benefit for supply chain tracking, i.e., the timely communication of the status of a physical good. Conclusions: Distributed ledgers often have a disadvantage in that they are very complex and, therefore, expensive. DLT should preferably only be used when it is technologically necessary or the simplest/cheapest choice, which is probably not all that often. Finally, the usefulness of distributed ledger technology and its integrated smart contract technology is highly dependent on how easy it is to link the real physical world to a digital record/contract in an error-free and tamper-proof way. Currently, such a definite link exists only in very few cases and is often impossible. Full article
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28 pages, 2911 KiB  
Article
Blockchain Technologies in Logistics and Supply Chain Management: A Bibliometric Review
by Abderahman Rejeb, Karim Rejeb, Steve Simske and Horst Treiblmaier
Logistics 2021, 5(4), 72; https://doi.org/10.3390/logistics5040072 - 7 Oct 2021
Cited by 70 | Viewed by 26855
Abstract
The emergence of blockchain technology has sparked significant attention from the supply chain management (SCM) and logistics communities. In this paper, we present the results from a thorough bibliometric review that analytically and objectively identifies the intellectual structure of this field, the seminal [...] Read more.
The emergence of blockchain technology has sparked significant attention from the supply chain management (SCM) and logistics communities. In this paper, we present the results from a thorough bibliometric review that analytically and objectively identifies the intellectual structure of this field, the seminal papers, and the most influential scholars. We employ a knowledge domain visualization technique to generate insights that go beyond other review studies on blockchain research within logistics and SCM. The analysis starts with selecting a total of 628 papers from Scopus and the Web of Science that were published during 2016–2020. The bibliometric analysis output demonstrates that the number of blockchain papers has rapidly increased since 2017. The most productive researchers are from the USA, China, and India. The top academic institutions contributing to the literature are also identified. Based on network analyses, we found that the literature concentrates mainly on the conceptualization of blockchain; its potentials for supply chain sustainability; its adoption triggers and barriers; and its role in supporting supply chain agility, trust, protection of intellectual property, and food/perishable supply chains. Besides systematically mapping the literature, we identify several research gaps and propose numerous actionable research directions for the future. This study enriches the extant blockchain literature, provides a timely snapshot of the current state of research, and examines the knowledge structure of blockchain research in logistics and SCM with the help of evidence-based scientometric methods. Full article
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14 pages, 2689 KiB  
Article
Blockchain Solutions for International Logistics Networks along the New Silk Road between Europe and Asia
by Bernard Aritua, Clemens Wagener, Norbert Wagener and Michał Adamczak
Logistics 2021, 5(3), 55; https://doi.org/10.3390/logistics5030055 - 16 Aug 2021
Cited by 3 | Viewed by 5264
Abstract
The primary research that underpins this paper seeks to explore the applications of blockchain technology on a specific international corridor and to draw policy implications for decision makers. To analyze the bottlenecks of operating on the New Silk Road and to identify opportunities [...] Read more.
The primary research that underpins this paper seeks to explore the applications of blockchain technology on a specific international corridor and to draw policy implications for decision makers. To analyze the bottlenecks of operating on the New Silk Road and to identify opportunities for applying the blockchain technology on this corridor, a survey was conducted among main train operators and experts working on this route. These responses provide insight into the issues related to the adoption of blockchain technology from front-line actors. The top three challenges are lack of capacities, congestion at transshipment terminals, and slow border crossing. Through the application of blockchain technology, the operators are presented with opportunities for improved accuracy in the processing of data and information, higher reliability of information flows through failure-free transfer of information, and improved traceability of supply chains through irrevocable input of status information. Currently, 50% of the respondents have started to implement blockchain applications or have an actual interest to apply blockchain solutions. For a wider implementation of blockchain solutions, business models need to be developed allowing private and permissioned access that is accepted and open for parties involved. Policy makers should facilitate these digital innovations through flexible and harmonized legal regulations on an international level. Full article
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23 pages, 379 KiB  
Article
On Blockchain Integration with Supply Chain: Overview on Data Transparency
by Houssein Hellani, Layth Sliman, Abed Ellatif Samhat and Ernesto Exposito
Logistics 2021, 5(3), 46; https://doi.org/10.3390/logistics5030046 - 2 Jul 2021
Cited by 52 | Viewed by 12219
Abstract
Data transparency is essential in the modern supply chain to improve trust and boost collaboration among partners. In this context, Blockchain is a promising technology to provide full transparency across the entire supply chain. However, Blockchain was originally designed to provide full transparency [...] Read more.
Data transparency is essential in the modern supply chain to improve trust and boost collaboration among partners. In this context, Blockchain is a promising technology to provide full transparency across the entire supply chain. However, Blockchain was originally designed to provide full transparency and uncontrolled data access. This leads many market actors to avoid Blockchain as they fear for their confidentiality. In this paper, we highlight the requirements and challenges of supply chain transparency. We then investigate a set of supply chain projects that tackle data transparency issues by utilizing Blockchain in their core platform in different manners. Furthermore, we analyze the projects’ techniques and the tools utilized to customize transparency. As a result of the projects’ analyses, we identified that further enhancements are needed to set a balance between the data transparency and process opacity required by different partners, to ensure the confidentiality of their processes and to control access to sensitive data. Full article
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24 pages, 1419 KiB  
Article
Using Blockchain Technology to Foster Collaboration among Shippers and Carriers in the Trucking Industry: A Design Science Research Approach
by Serkan Alacam and Asli Sencer
Logistics 2021, 5(2), 37; https://doi.org/10.3390/logistics5020037 - 9 Jun 2021
Cited by 10 | Viewed by 6137
Abstract
In the global trucking industry, vertical collaboration between shippers and carriers is attained by intermediaries, called brokers. Brokers organize carriers for a shipper in accordance with its quality and price requirements, and support carriers to collaborate horizontally by sharing a large distribution order [...] Read more.
In the global trucking industry, vertical collaboration between shippers and carriers is attained by intermediaries, called brokers. Brokers organize carriers for a shipper in accordance with its quality and price requirements, and support carriers to collaborate horizontally by sharing a large distribution order from a shipper. Brokers also act as trustees, preventing the passing of private information of any party to the others. Despite these benefits, intermediaries in the trucking industry are involved in several sustainability problems, including high costs, high levels of carbon emissions, high percentages of empty miles, low-capacity utilizations, and driver shortages. Several studies have acknowledged the importance of improving collaboration to address these problems. Obviously, the major concern of brokers is not collaboration, but rather to optimize their own gains. This paper investigates the potential of blockchain technology to improve collaboration in the trucking industry, by eliminating brokers while preserving their responsibilities as organizers and trustees. This paper extends the transportation control tower concept from the logistics literature, and presents a system architecture for its implementation through smart contracts on a blockchain network. In the proposed system, the scalability and privacy of trucking operations are ensured through integration with privacy-preserving off-chain computation and storage solutions (running outside of the blockchain). The potential of this design artifact for fostering collaboration in the trucking industry was evaluated by both blockchain technology experts and trucking industry professionals. Full article
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18 pages, 2672 KiB  
Article
Applying Distributed Ledger Concepts to a Swiss Regional Label Ecosystem
by Saša Malešević, Michael Lustenberger and Florian Spychiger
Logistics 2020, 4(4), 32; https://doi.org/10.3390/logistics4040032 - 1 Dec 2020
Cited by 2 | Viewed by 3629
Abstract
Improving current supply chains by using distributed ledger technology (DLT) has been a highly researched topic during the last years. Currently, there are numerous articles elaborating on how such technologies can theoretically improve supply chains. However, case studies of such concepts and their [...] Read more.
Improving current supply chains by using distributed ledger technology (DLT) has been a highly researched topic during the last years. Currently, there are numerous articles elaborating on how such technologies can theoretically improve supply chains. However, case studies of such concepts and their economic value are scarce. In order to bridge this gap, we collaborated with a regional label company to clarify how a distributed ledger technology would benefit their ecosystem. This work answers the question of how such a prototype would look and whether it adds value. By following design science research practices, we design two artifacts based on requirements gathered in 14 interviews and discuss the artifacts’ elements within an evaluation panel. Our findings show that a distributed ledger application for the regional label ecosystem should have an open and decentralized architecture giving all participants full access to the shared data while still providing security and privacy for sensitive data. Additionally, data capturing should be simple. However, such an application does not add sufficient economic value and is currently of no practical interest in the regional label ecosystem as the expenditure likely exceeds the benefit. Full article
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31 pages, 2501 KiB  
Article
The Architectural Design Requirements of a Blockchain-Based Port Community System
by Elnaz Irannezhad
Logistics 2020, 4(4), 30; https://doi.org/10.3390/logistics4040030 - 20 Nov 2020
Cited by 28 | Viewed by 7509
Abstract
This paper presents the value proposition of blockchain for Port Community Systems (PCS) by dissecting the business processes in port logistics and unfolding functionalities of blockchain in lowering the transaction cost. This paper contributes to the research by a detailed technical assessment of [...] Read more.
This paper presents the value proposition of blockchain for Port Community Systems (PCS) by dissecting the business processes in port logistics and unfolding functionalities of blockchain in lowering the transaction cost. This paper contributes to the research by a detailed technical assessment of the plethora of currently available blockchain platforms and consensus mechanisms, against the identified requirements in this specific use case. The results of this technical assessment highlight the central value proposition of blockchain for landlord ports, which is independency from a central authority as the controlling agent. Bridging between two research domains of Information Technology and Logistics, this paper proposes the preferred architectural design requirements of a blockchain-based PCS, including provisioning private sidechains, modular design with inter-chain interoperability, and encrypted off-chain data storage. Availability—the readiness for correct service, and reliability—the continuity of correct service, are heavily reliant on the right choice being made for blockchain design for such a complex use case. A preliminary comparative analysis among different decentralisation levels in this paper suggests that a permissioned public blockchain offers the best trade-off in performance measures for this use case. This technical review identifies six research agenda from a design perspective. Full article
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Review

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15 pages, 1984 KiB  
Review
Applications of Blockchain Technology in Logistics and Supply Chain Management—Insights from a Systematic Literature Review
by Moritz Berneis, Devis Bartsch and Herwig Winkler
Logistics 2021, 5(3), 43; https://doi.org/10.3390/logistics5030043 - 30 Jun 2021
Cited by 39 | Viewed by 10889
Abstract
The most successful applications of Blockchain Technology are still in the area of crypto-currencies, although both scientists and practitioners have discovered the potential of Blockchain Technology in Supply Chain Management. There is a significant theoretical literature on Blockchain Technology, but there exists a [...] Read more.
The most successful applications of Blockchain Technology are still in the area of crypto-currencies, although both scientists and practitioners have discovered the potential of Blockchain Technology in Supply Chain Management. There is a significant theoretical literature on Blockchain Technology, but there exists a lack of published case studies and concrete examples. This paper discusses whether this shortcoming is due to insufficient added value of the technology and identifies other possible reasons. Furthermore, this paper introduces Blockchain Technology, describes the origins of Bitcoin, the structure and core properties of the Blockchain, and examines smart contracts. A comprehensive and structured literature analysis identifies concepts for the use of Blockchain Technology in logistics in terms of economic benefits. Additionally, a cluster analysis regarding the topics of the relevant literature was conducted. One finding of the study is that Blockchain Technology is particularly worthwhile for goods with a high value. Moreover, if the trade volume of the respective goods is low, the advantages of BCT are maximized. At the same time, the demand for transparency and immutability of data must be more important than the protection of sensitive data. In addition to concrete use cases of Blockchains, an exemplary logistics process will be presented within the Luxury Supply Chain, showing the advantages of Blockchain Technology for each individual process step. Full article
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26 pages, 1529 KiB  
Review
Blockchain Technology in the Food Industry: A Review of Potentials, Challenges and Future Research Directions
by Abderahman Rejeb, John G. Keogh, Suhaiza Zailani, Horst Treiblmaier and Karim Rejeb
Logistics 2020, 4(4), 27; https://doi.org/10.3390/logistics4040027 - 26 Oct 2020
Cited by 157 | Viewed by 28842
Abstract
Blockchain technology has emerged as a promising technology with far-reaching implications for the food industry. The combination of immutability, enhanced visibility, transparency and data integrity provides numerous benefits that improve trust in extended food supply chains (FSCs). Blockchain can enhance traceability, enable more [...] Read more.
Blockchain technology has emerged as a promising technology with far-reaching implications for the food industry. The combination of immutability, enhanced visibility, transparency and data integrity provides numerous benefits that improve trust in extended food supply chains (FSCs). Blockchain can enhance traceability, enable more efficient recall and aids in risk reduction of counterfeits and other forms of illicit trade. Moreover, blockchain can enhance the integrity of credence claims such as sustainably sourced, organic or faith-based claims such as kosher or halal by integrating the authoritative source of the claim (e.g., the certification body or certification owner) into the blockchain to verify the claim integrity and reassure business customers and end consumers. Despite the promises and market hype, a comprehensive overview of the potential benefits and challenges of blockchain in FSCs is still missing. To bridge this knowledge gap, we present the findings from a systematic review and bibliometric analysis of sixty-one (61) journal articles and synthesize existing research. The main benefits of blockchain technology in FCSs are improved food traceability, enhanced collaboration, operational efficiencies and streamlined food trading processes. Potential challenges include technical, organizational and regulatory issues. We discuss the theoretical and practical implications of our research and present several ideas for future research. Full article
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