Blockchain and third-party logistics for global supply chain operations: Stakeholders? perspectives and decision roadmap*

In global supply chains, third-party logistics (3PL) services have proven to be critically important in helping many supply chain agents with distribution tasks so that they can focus on their core competencies of product development and manufacturing. However, there are many inadequacies in current global supply chains that affect the functions of 3PL. These shortcomings have necessitated digital transformation in many businesses. This digitalization enhances information sharing and supply chain visibility, which improves supply chain performance; however, it may create challenges regarding cybersecurity and data quality. Blockchain technology (BCT), with features such as being highly secure and distributed, can help. In this paper, we examine the literature and identify challenges associated with 3PL and how BCT can be used for 3PL. Then, we conduct interviews with four innovation/project managers of well-established logistics companies to uncover the status of BCT adoption in 3PL and the challenges that are hampering the adoption of this technology. Finally, we propose a framework together with a decision roadmap for BCT implementation.

Automated summary

In global supply chains, 3PL services play a crucial role in assisting supply chain agents with distribution tasks, allowing them to focus on product development and manufacturing. However, current supply chains face inadequacies that impact the effectiveness of 3PL, leading to the need for digital transformation. Digitization improves supply chain performance through enhanced information sharing and visibility, but raises challenges in cybersecurity and data quality. Blockchain technology offers solutions with its high security and distribution features. This paper examines the challenges and potential of using blockchain in 3PL, based on literature and interviews with innovation/project managers from established logistics companies.