IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v170y2023ics1366554523000017.html
   My bibliography  Save this article

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

Author

Listed:
  • Zhang, Xuefeng
  • Li, Zhe
  • Li, Guo

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.

Suggested Citation

  • Zhang, Xuefeng & Li, Zhe & Li, Guo, 2023. "Impacts of blockchain-based digital transition on cold supply chains with a third-party logistics service provider," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    • Handle: RePEc:eee:transe:v:170:y:2023:i:c:s1366554523000017
    DOI: 10.1016/j.tre.2023.103014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554523000017
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2023.103014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hu, Yihong & Qu, Shengnan & Li, Guo & Sethi, Suresh P., 2021. "Power structure and channel integration strategy for online retailers," European Journal of Operational Research, Elsevier, vol. 294(3), pages 951-964.
    2. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    3. Xiaodong Yang & Gangshu (George) Cai & Charles A. Ingene & Jihong Zhang, 2020. "Manufacturer Strategy on Service Provision in Competitive Channels," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 72-89, January.
    4. Tsan‐Ming Choi & Subodha Kumar & Xiaohang Yue & Hau‐Ling Chan, 2022. "Disruptive Technologies and Operations Management in the Industry 4.0 Era and Beyond," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 9-31, January.
    5. Bin Shen & Ciwei Dong & Stefan Minner, 2022. "Combating Copycats in the Supply Chain with Permissioned Blockchain Technology," Production and Operations Management, Production and Operations Management Society, vol. 31(1), pages 138-154, January.
    6. Choi, Tsan-Ming & Guo, Shu & Liu, Na & Shi, Xiutian, 2020. "Optimal pricing in on-demand-service-platform-operations with hired agents and risk-sensitive customers in the blockchain era," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1031-1042.
    7. Zhang, Jian & Nault, Barrie R. & Tu, Yiliu, 2015. "A dynamic pricing strategy for a 3PL provider with heterogeneous customers," International Journal of Production Economics, Elsevier, vol. 169(C), pages 31-43.
    8. Choi, Tsan-Ming, 2019. "Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 17-29.
    9. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    10. Jiri Chod & Nikolaos Trichakis & Gerry Tsoukalas & Henry Aspegren & Mark Weber, 2020. "On the Financing Benefits of Supply Chain Transparency and Blockchain Adoption," Management Science, INFORMS, vol. 66(10), pages 4378-4396, October.
    11. Ye Guo & Chen Liang, 2016. "Blockchain application and outlook in the banking industry," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-12, December.
    12. Ghiami, Yousef & Williams, Terry, 2015. "A two-echelon production-inventory model for deteriorating items with multiple buyers," International Journal of Production Economics, Elsevier, vol. 159(C), pages 233-240.
    13. Kshetri, Nir, 2018. "1 Blockchain’s roles in meeting key supply chain management objectives," International Journal of Information Management, Elsevier, vol. 39(C), pages 80-89.
    14. Wang, Fan & Yang, Xiao & Zhuo, Xiaopo & Xiong, Minghua, 2019. "Joint logistics and financial services by a 3PL firm: Effects of risk preference and demand volatility," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 312-328.
    15. Choi, Tsan-Ming & Ouyang, Xu, 2021. "Initial coin offerings for blockchain based product provenance authentication platforms," International Journal of Production Economics, Elsevier, vol. 233(C).
    16. Hubert Pun & Jayashankar M. Swaminathan & Pengwen Hou, 2021. "Blockchain Adoption for Combating Deceptive Counterfeits," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 864-882, April.
    17. Zhang, Jianxiong & Liu, Guowei & Zhang, Qiao & Bai, Zhenyu, 2015. "Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract," Omega, Elsevier, vol. 56(C), pages 37-49.
    18. Zhang, Xuefeng & Li, Guo & Liu, Mengqi & Sethi, Suresh P., 2021. "Online platform service investment: A bane or a boon for supplier encroachment," International Journal of Production Economics, Elsevier, vol. 235(C).
    19. Mangla, Sachin Kumar & Kazancoglu, Yigit & Ekinci, Esra & Liu, Mengqi & Özbiltekin, Melisa & Sezer, Muruvvet Deniz, 2021. "Using system dynamics to analyze the societal impacts of blockchain technology in milk supply chainsrefer," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    20. Hua, Shengya & Sun, Shuxiao & Liu, Zhongyi & Zhai, Xin, 2021. "Benefits of third-party logistics firms as financing providers," European Journal of Operational Research, Elsevier, vol. 294(1), pages 174-187.
    21. Rajesh, R. & Pugazhendhi, S. & Ganesh, K. & Muralidharan, C. & Sathiamoorthy, R., 2011. "Influence of 3PL service offerings on client performance in India," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 149-165, March.
    22. Li, Guo & Zhang, Xuefeng & Liu, Mengqi, 2019. "E-tailer’s procurement strategies for drop-shipping: Simultaneous vs. sequential approach to two manufacturers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 108-127.
    23. Dye, Chung-Yuan & Hsieh, Tsu-Pang, 2012. "An optimal replenishment policy for deteriorating items with effective investment in preservation technology," European Journal of Operational Research, Elsevier, vol. 218(1), pages 106-112.
    24. Shen, Bin & Xu, Xiaoyan & Yuan, Quan, 2020. "Selling secondhand products through an online platform with blockchain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    25. Andy A. Tsay & Narendra Agrawal, 2000. "Channel Dynamics Under Price and Service Competition," Manufacturing & Service Operations Management, INFORMS, vol. 2(4), pages 372-391, August.
    26. Burgos, Diana & Ivanov, Dmitry, 2021. "Food retail supply chain resilience and the COVID-19 pandemic: A digital twin-based impact analysis and improvement directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    27. Guowei Liu & Jianxiong Zhang & Wansheng Tang, 2015. "Joint dynamic pricing and investment strategy for perishable foods with price-quality dependent demand," Annals of Operations Research, Springer, vol. 226(1), pages 397-416, March.
    28. Yu, Yunlong & Xiao, Tiaojun, 2021. "Analysis of cold-chain service outsourcing modes in a fresh agri-product supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    29. Ma, Xueli & Wang, Jian & Bai, Qingguo & Wang, Shuyun, 2020. "Optimization of a three-echelon cold chain considering freshness-keeping efforts under cap-and-trade regulation in Industry 4.0," International Journal of Production Economics, Elsevier, vol. 220(C).
    30. Chunguang Bai & Joseph Sarkis, 2020. "A supply chain transparency and sustainability technology appraisal model for blockchain technology," International Journal of Production Research, Taylor & Francis Journals, vol. 58(7), pages 2142-2162, April.
    31. Sammi Yu Tang & Panos Kouvelis, 2011. "Supplier Diversification Strategies in the Presence of Yield Uncertainty and Buyer Competition," Manufacturing & Service Operations Management, INFORMS, vol. 13(4), pages 439-451, October.
    32. Sarang Deo & Charles J. Corbett, 2009. "Cournot Competition Under Yield Uncertainty: The Case of the U.S. Influenza Vaccine Market," Manufacturing & Service Operations Management, INFORMS, vol. 11(4), pages 563-576, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shuai Li & Shaojian Qu, 2023. "The Three-Level Supply Chain Finance Collaboration under Blockchain: Income Sharing with Shapley Value Cooperative Game," Sustainability, MDPI, vol. 15(6), pages 1-28, March.
    2. Zhangwei Feng & Peng Jin & Guiping Li, 2023. "Investment Decision of Blockchain Technology in Fresh Food Supply Chains Considering Misreporting Behavior," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    3. Zhou, Yu & Yan, Shuangqi & Li, Gendao & Xiong, Yu & Lin, Zhibin, 2023. "The impact of consumer skepticism on blockchain-enabled sustainability disclosure in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Tianyu & Dong, Peiwu & Chen, Xiangfeng & Gong, Yu, 2023. "The impacts of blockchain adoption on a dual-channel supply chain with risk-averse members," Omega, Elsevier, vol. 114(C).
    2. Liu, Shuai & Hua, Guowei & Kang, Yuxuan & Edwin Cheng, T.C. & Xu, Yadong, 2022. "What value does blockchain bring to the imported fresh food supply chain?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    3. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    4. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    5. Gupta, Shivam & Modgil, Sachin & Choi, Tsan-Ming & Kumar, Ajay & Antony, Jiju, 2023. "Influences of artificial intelligence and blockchain technology on financial resilience of supply chains," International Journal of Production Economics, Elsevier, vol. 261(C).
    6. Tiwari, Sunil & Sharma, Pankaj & Choi, Tsan-Ming & Lim, Andrew, 2023. "Blockchain and third-party logistics for global supply chain operations: Stakeholders’ perspectives and decision roadmap," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    7. Chu, Xiang & Wang, Rui & Lin, Yan & Li, Yantong, 2022. "Building trust in online trade-in programs with a blockchain-enabled system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    8. Ivanov, Dmitry & Dolgui, Alexandre & Sokolov, Boris, 2022. "Cloud supply chain: Integrating Industry 4.0 and digital platforms in the “Supply Chain-as-a-Service”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    9. Zhou, Yu & Gao, Xiang & Luo, Suyuan & Xiong, Yu & Ye, Niangyue, 2022. "Anti-Counterfeiting in a retail Platform: A Game-Theoretic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    10. Niu, Baozhuang & Xu, Haotao & Chen, Lei, 2022. "Creating all-win by blockchain in a remanufacturing supply chain with consumer risk-aversion and quality untrust," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    11. Zhu, Shichao & Li, Jian & Wang, Shouyang & Xia, Yusen & Wang, Yajing, 2023. "The role of blockchain technology in the dual-channel supply chain dominated by a brand owner," International Journal of Production Economics, Elsevier, vol. 258(C).
    12. Xu, Xiaoping & Choi, Tsan-Ming, 2021. "Supply chain operations with online platforms under the cap-and-trade regulation: Impacts of using blockchain technology," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    13. Zhang, Qing & Jiang, Xiuqi & Zheng, Yini, 2023. "Blockchain adoption and gray markets in a global supply chain," Omega, Elsevier, vol. 115(C).
    14. Choi, Tsan-Ming & Siqin, Tana, 2022. "Blockchain in logistics and production from Blockchain 1.0 to Blockchain 5.0: An intra-inter-organizational framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    15. Yuling Sun & Xiaomei Song & Yihao Jiang & Jian Guo, 2023. "Strategy Analysis of Fresh Agricultural Enterprises in a Competitive Circumstance: The Impact of Blockchain and Consumer Traceability Preferences," Mathematics, MDPI, vol. 11(5), pages 1-18, February.
    16. Li, Lin & Li, Guo, 2023. "Integrating logistics service or not? The role of platform entry strategy in an online marketplace," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    17. Zhongmiao Sun & Qi Xu & Jinrong Liu, 2023. "Dynamic Incentive Contract of Government for Port Enterprises to Reduce Emissions in the Blockchain Era: Considering Carbon Trading Policy," Sustainability, MDPI, vol. 15(16), pages 1-40, August.
    18. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Guan, Xu & Zeng, Kuan, 2021. "The interplay between blockchain adoption and channel selection in combating counterfeits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    19. De-Qing Ma & Xiao-Qing Wang & Xue Wang & Jin-Song Hu, 2023. "Achieving Triple Benefits in a Platform-Based Closed-Loop Supply Chain: The Optimal Combination between Recycling Channel and Blockchain," Sustainability, MDPI, vol. 15(5), pages 1-40, February.
    20. Li, Yuze & Jiang, Shangrong & Shi, Jianming & Wei, Yunjie, 2021. "Pricing strategies for blockchain payment service under customer heterogeneity," International Journal of Production Economics, Elsevier, vol. 242(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:170:y:2023:i:c:s1366554523000017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.