Ensuring performance measurement integrity in logistics using blockchain

Abstract

Information and communication technology has been a positive dynamic force behind improving performance. Simultaneously enabling digital business ecosystems to become an increasingly popular concept for modelling and building distributed systems in heterogeneous, decentralized and open environments. These business solutions have created an opportunity for automated business relations and transactions as well as implementing blockchain based performance measurement systems (PMS), allowing PMS to be more advanced giving validation and verification of received data hence the indicators. This paper evaluates feasibility of blockchain based PMS for logistics industry. Today the performance of supply chain stakeholders including transport logistics is lacking transparency and restraining innovative digital improvements towards a connected, smart and efficient ecosystem. Current public blockchains are not feasible for given use case due to limited throughput, and transaction cost. In this paper we have evaluated different technological alternatives and found several new developments that make blockchain technology suitable for ensuring logistics sector performance measurement integrity. Validated indicators can add trustworthiness and visibility to management and process improvement decisions, as well as be subject to smart contracts and monetary transactions.