Impacts of blockchain-based digital transition on cold supply chains with a third-party logistics service provider

Xuefeng Zhang, Zhe Li and Guo Li

Transportation Research Part E: Logistics and Transportation Review, 2023, vol. 170, issue C

Abstract: Blockchain is a driver for digitalization in the fresh industry, but the resulting improvements in each supply chain member’s performance are difficult to predict. In this study, we examine the effects of blockchain-based digital transition in a cold supply chain with a manufacturer, a retailer, and a third-party logistics service provider (3PL). Our study provides several managerial implications. First, blockchain adoption would lead to a preservation service level increase if the 3PL charges a low transportation fee, but a preservation service level decrease if the 3PL charges a high one. Second, the blockchain adoption may induce the manufacturer to increase its wholesale price, which does not cause the retailer to cut the order quantity but instead sets a lager one. Third, our results indicate that simply relying on the market mechanism may not enable the cold supply chain to make the optimal decision; thus, government intervention or an exogenous coordination mechanism must be introduced to drive the cold supply chain members to reach a consensus on blockchain-based digital transition. Finally, the main results in the basic model are proven to remain robust. Managerial implications are discussed and provided.

Keywords: Digital transition; Blockchain; Cold supply chain; Third-party logistics (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tre.2023.103014

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