Adoption challenges of blockchain technology for reverse logistics in the food processing industry

Abstract

Streamlining the product movement through blockchain technology helps organisations manage logistics functions more efficiently and gain advantages such as speedy delivery, better traceability, decentralised data, transparency, etc. At the same time, blockchain has many implementation challenges too. This paper empirically examines the factors affecting blockchain technology adoption for reverse logistics in the food processing industry. This research has used the exploratory factor analysis method to derive factors perceived as challenges to adopting blockchain for reverse logistics. The study findings revealed six factors, i.e., lack of resources, cooperation issues between partners, fear of data breach, technology asynchronization, intensive capital requirement, and mishandling of bulk orders, which emerged as significant challenges. Managing identified challenges can help address issues related to adopting blockchain technology for reverse logistics functions and make operations more efficient.

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