Blockchain - A Game Changer In On-Demand Supply Chain, Transportation, And Logistics Industry

Blockchain - A Game Changer In On-Demand Supply Chain, Transportation, And Logistics Industry

In the transportation industry, on-demand logistics is a new buzzword. The digital arena made things very easy and simple. One of the main industries which are highly benefited from technology improvement is the transportation and logistics sector. The next big technology integration in transportation and logistics app development is Blockchain. This will take the logistics industry to the next level. Let us know in detail about blockchain in the supply chain industry.

Supply Chain, Logistics, And Transportation Industry 

Let us now know in detail about the supply chain, logistics, and transportation industry. Also, we can know about the interconnections in these three industries, challenges faced, and the integration of blockchain technology to build a perfect on-demand logistics, transportation, and supply chain app development.

Supply Chain:

In simple words, the supply chain is defined as the activities required by the organizations to deliver goods and services to the end-user. The supply chain is also referred to as the process of converting raw materials to a finished product or service.


Transportation is the movement of products and resources from one place to another by various means of transportation. The most common modes of transport are railways, roadways, airways, waterways, and pipelines. This transportation involves moving the raw materials to the organization, moving the furnished goods to the suppliers, moving goods to the end-users, etc.


In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.

On-Demand Logistics Market: Overview

The on-demand logistics is nothing but the communication between the customers and the shippers by means of smartphones. This also offers several additional features like geo-tracking using GPS, time scheduling, order booking, etc.

This logistics industry is going to hit 75.0 billion dollars by 2030, which is 9.1 billion dollars in 2019. The market is divided into several industries such as e-commerce, peer-to-peer delivery, and packers and movers. Among these three industries, e-commerce decisions gave the largest share like Walmart, Amazon, Flipkart, etc. From 2017, the share of e-commerce in the global retail sales grew by 15% in 2018, and it is projected to further increase to 17% by 2021. The cost-effective and convenient shipping model offered by the on-demand logistics market was the major reason behind the progress. 

The largest share in the on-demand logistics market in 2019 was held by North America. The region needs additional drivers for the trucks. This becomes a problem when the orders increase suddenly. 

What Is Blockchain?

Blockchain seems to be complicated, but the core concept of blockchain is quite simple and easy to understand. Blockchain is a distributed database that can hold records and digital data. The participants can access, inspect and add data to the database, but cannot change or delta the information stored. In short, blockchain is a record-keeping mechanism that makes it easier and safer for businesses to work together over the internet.

The Introduction of Blockchain In Transportation & Logistics

Blockchain technology gives intelligence to track and record every transaction between the parties. Integrating Blockchain Technology can reduce the supply chain barriers and increase sales by almost 15%, says World Economic Forum. Many companies have already started using blockchain to overcome the challenges faced in the supply chain industry. Some of the front runners using blockchain in logistics and supply are Amazon, Walmart, FedEx, Unilever, Alibaba. This technology helps the supply chain in improving transparency and efficiency by preventing inaccuracies and fraud. And also helps in the cutting of paperwork and expenses. 

Blockchain - A Better Programed Solution

Blockchain is used to solve many issues in the supply chain industry such as data keeping in records and tracking of products. A better-programmed solution can be given to the centralized database with the help of blockchain technology. Apart from this, there are several other ways in which blockchain technology can improve the working of the supply chain industry.

1. Origin Tracking

Even the companies with very advanced workforce lose track of transactions due to the very high volume of transactions and many elements in the supply chain. This inefficiency leads to many other issues like loss of customer data cost, unpleasant customer relationship, and brand dilution.

Here the blockchain-powered supply chain crystal clear tracking and record-keeping lead to any information fetching and embedded sensors and RFID tags. The history of the products can be tracked rightly. The accuracy of tracking helps in preventing frauds. 

 2. Cost Reduction

With blockchain, while maintaining the security in the transactions simultaneously the extra cost can also be reduced. The middlemen and intermediaries can also be eliminated. This reduces the risks of frauds and duplicity of products and enhances accurate record-keeping and savings.

More than one-third of people think that reduction of costs is the foremost advantage of blockchain in the supply chain industry, says the survey was done by APQC and the Digital Supply Chain Institute Of Supply Chain workers. This is because of the real-time product tracking offered.

3. Confidence Building  

It is very essential to build trust in the system for hassle-free operations for the multiple participants in the complex supply chain. The blockchain is characterized by immutable record-keeping which protects the information from changing on all levels.

Benefits Of Using Blockchain In Supply Chain, Logistics, And Transportation

Blockchain is the much-needed technology to improve the current supply chain system. Weak communication between the organizations involved is the biggest major problem with the supply chain industry. This can end up in products not reaching the customers on time, delivering with damage, etc.

  1. Interoperability: Interoperability is the ultimate benefit of blockchain technology which lets data transfer is simple and effective. This transparency reduces delays and conflicts. When it comes to the supply chain, it reduces the chances of misplacements as each product is tracked effectively in real-time.

  2. Scalability: It Provides Scalability by which a bulk amount of data can be handled from any global location. Users can customize what could be shared in the news feed with the concern of security. "Selective Permissions" is the most prominent feature that let participants view and access the data

Apart from these, there are other benefits of adopting Blockchain technology in supply chain management: Lessen or eliminate fraud and errors

3. Advanced inventory management
4. Reduce courier costs
5. Minimize delays in paperwork
6.  Identify any issue faster
7. Build consumer and participant trust

Six Ways That Blockchain Can Lift A Supply Chain, Transportation, And Business

  • Improved Efficiency
  • Immutable Tracking And Security
  • Easy Integration With Other Technologies 
  • Automated Payments
  • Reduces Fraud And Theft
  • Watching The Performance History

Businesses & Startups That Drive Supply Chain Using Blockchain Technology

1. FedEx

FedEx Corporation is a shipping giant, formerly Federal Express Corporation and later FDX Corporation, is an American multinational delivery services company headquartered in Memphis, Tennessee. They used a blockchain to track and store records.

2. Walmart

Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. They use blockchain to ensure food safety, traceability, and tracking.

How Blockchain Technology Could Construct a Lucrative and Transparent On-Demand Logistics Market

The industries where blockchain technology is implemented are experiencing tremendous growth in the market. One such industry is the transportation and logistics industry. Blockchain technology is making a revolution in this industry by processing more transparent, secure, and efficient transactions between companies. Here are few factors through which blockchain could construct a lucrative and transparent on-demand logistics market.

Data Transparency

Not being able to trust the accuracy of the information provided is the major problem in the logistics industry. Keeping the data secret by the companies under the supply chain leads to a lack of transparency in this line. Blockchain gives a significant solution in this scenario by providing a decentralized, transparent way to save and access the data stored.

Smart Contracts

A smart contract is a blockchain-based solution that offers automated legally binding agreements throughout the supply chain. This allows businesses to assess and follow the steps inside the logistical process, record the pre-programmed instruction set into them. It is to enforce compliance with the pre-agreed rules of a transaction that fails to complete an agreement.

Decentralization For Data Security

The current system is all centralized. This will lead to the malicious intruder having complete control over the system after gaining access. They can theoretically change or remove any data stored within the system. Blockchain Technology is decentralized, which means there is no single access point that provides any user the qualification to unilaterally make changes. 

Permission-Based Access

Blockchain technology will govern who is eligible to access various tiers and subsets of the whole information inside the network. This is nothing but general information that can be accessed by any member, while sensitive information can only be accessed by selected members.

Clear-Cut Asset Management

Tracking assets and resolving ownership issues is one of the biggest strengths of blockchain networks. Blockchain can handle complex and ongoing transactions. Transactions cannot be modified once they are completed. Each party has access to all corresponding updates, which take place in real-time.

Extensible Order Management Solutions

With virtually no limits, blockchain is an extensible order management solution. There is no risk of bottlenecks clogging up a blockchain-based logistics network. One should select a correct consensus mechanism to ensure high performance.

Real-Time Asset Tracking

The Blockchain has the intelligence to duo with the Internet Of Things (IoT) and mobile-based technology to create a system for real-time delivery tracking.

Build A Transparent On-Demand Supply Chain, Transportation, And Logistics App

There is no doubt that Blockchain technology is going to be an absolute game-changer in the coming days. Blockchain Technology and the On-Demand Industry, in separate both are highly beneficial to users. But now the combination of both becomes marvelous innovation. Now it is possible to integrate blockchain in the supply chain, transportation, and logistics applications. By building on-demand blockchain-packed supply chain applications, entrepreneurs and enterprises can run a hassle-free, highly secured, and efficient supply chain, transportation, and logistics business. 

If you’re a supply chain business looking to transform your business with blockchain, get in touch with us. We Startupmart, an on demand app development company offer the best On Demand Logistics App Development With Blockchain Technology with our certified On-Demand app developers, who are experts in blockchain technology too.

Blockchain is a complete game-changer!!

About Muthu Priya

Muthu Priya is a enthusiastic Digital Marketing Executive who has strong background on-demand mobile app marketing, performance-driven habits and forward-thinking creativity to all programs she oversees. She writes about mobile app technologies, Startups, Industires. Stay in touch with the blog updates at Startupmart to know the trends of On-Demand Industry.

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