Blockchain adoption decision analysis of fresh supply chain considering 3PL's misreporting behavior

Abstract

In fresh supply chain, the third-party logistics service provider (3PL) has incentive to misreport its private information such as preservation service effort level and logistics transportation cost for the sake of gaining competitive advantage in the market. A tamper-proof and traceability system supported by blockchain technology (BCT) can prevent 3PL from misreporting. In this paper, we investigate the BCT adoption decision of a fresh supply chain consisting of a manufacturer, a retailer, and a 3PL when the 3PL misreports its private information. Specifically, we conduct four models: without BCT adoption and 3PL misreports its preservation service effort level (Model NE), without BCT adoption and 3PL misreports its logistics transportation cost (Model NC), without BCT adoption and 3PL misreports both preservation service effort level and logistics transportation cost (Model ND) and with BCT adoption and no misrepresentation (Model AB). By calculating the models, our study indicates that when the 3PL underreports its fresh-keeping service effort level and the degree of underreporting is high or when the 3PL overreports its logistics transportation cost and the degree of overreporting is high, all fresh supply chain members will reach an agreement on implementing BCT. However, when the 3PL misreports its fresh-keeping service effort and logistics transportation cost simultaneously, the BCT adoption decision is influenced not only by the misreporting coefficient of logistics transportation cost and preservation service effort, but also by logistics transportation cost. Finally, as logistics transportation cost increases, the manufacturer and retailer are reluctant to adopt BCT, while the 3PL is willing to adopt BCT.