The Role of Smart Contracts in Reducing Disputes in Third-Party Logistics (3PL)

Abstract

Smart contracts powered by blockchain technology are examined in this paper for their possible use in overcoming disputes in freight handling which are part of third-party logistics (3PL) work. Smart contracts and blockchain have taken off in supply chain areas, but their use in 3PL is still mostly untested. To reduce disputes, this research proposes a design with smart contracts that links to key operations in the logistics industry. The research uses simulations of typical freight handling to highlight how programmable contracts can solve problems by using automated checks and automatic steps when particular sections are triggered. According to the findings, smart contracts could greatly improve trust, efficiency and responsibility in 3PL, while helping to solve typical difficulties with punctual payments, missing shipments and keeping up with compliance requirements. With this paper, we create a basic framework for using blockchain-based smart contracts in logistics, detailing the pros, cons and future research opportunities for both logistics and technology.