An analysis of strategies for adopting blockchain technology in the fresh product supply chain

Xue‐Yan Wu · Zhi‐Ping Fan · Bing‐Bing Cao

223 citations0/0 files storedInternational Journal of Production Research

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Supply Chain and Inventory Management Sustainable Supply Chain Management Food Supply Chain Traceability

Abstract

This paper investigates the strategies for adopting blockchain technology in the fresh product supply chain (FPSC) consisting of a supplier, a third-party logistics service provider (3PL) and an e-tailer. We analyse the optimal strategies of FPSC members under the benchmark scenario where the FPSC does not adopt blockchain technology and those under the three scenarios where the supplier, 3PL and e-tailer lead the construction of the blockchain-based traceability system (BTS), respectively. We find that adopting blockchain technology is not always the optimal decision for the FPSC, which is related to the consumers’ acceptance degree for the product without blockchain technology, the deterioration rate of the fresh product and the allocation proportion of traceability cost of FPSC members when adopting blockchain technology. Regardless of the power and status of each member in the FPSC, it can lead the construction of the BTS. From the perspective of whole FPSC’s profit maximisation, the leader of the FPSC should lead the construction of the BTS under the coordination of a two-part tariff contract. This study provides valuable insights for FPSCs to adopt blockchain technology.

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References

2018Understanding the Blockchain technology adoption in supply chains-Indian context 2020Blockchain technology for enhancing swift-trust, collaboration and resilience within a humanitarian supply chain setting 2019Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains 2008Dual Sales Channel Management with Service Competition 2009Supply Chain Strategies for Perishable Products: The Case of Fresh Produce 2020Unearthing the determinants of Blockchain adoption in supply chain management 2009Optimization and Coordination of Fresh Product Supply Chains with Freshness‐Keeping Effort 2020Optimal pricing in on-demand-service-platform-operations with hired agents and risk-sensitive customers in the blockchain era

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