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

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 co-ordination 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.

Automated summary

Blockchain drives digitalization in the fresh industry, but predicting the improvements in supply chain members' performance is challenging. This study examines the effects of blockchain-based digital transition in a cold supply chain with a manufacturer, retailer, and logistics service provider. The findings suggest that blockchain adoption can increase or decrease preservation service level, depending on the transportation fee charged by the logistics service provider. It also highlights the need for government intervention or coordination mechanisms to drive consensus in the cold supply chain for optimal decision-making.