Implementation of Blockchain in Logistics and Digital Communication – short overview

The fast business development in supply chains requires quick and responsive data exchange without the possibility of modification between all included entities. With providing a single version of transactions, blockchains provide the visibility that all entities in the chain need to make better decisions throughout the lifecycle of the product, ensure trust for suppliers and buyers that products are authentic and improve efficiency through automation. In this brief overview, the possibility of removing one intermediary party in the logistics processes of the largest Croatian retailer is considered for the purpose of protecting master data and maintaining the level of confidentiality between suppliers, providers and customers. In this process, the intermediary is replaced with EDI translators based on blockchain technology that receive data from suppliers and buyers, standardize them and enable faster and unaltered flow of information. Based on standardized messages derived from orders, documents such as delivery notes and invoices are generated directly, and then forwarded to the right party in the chain. In this paper, master data of a specific product is analyzed for which the demand increased significantly during the Covid-19 pandemic. The product is a disinfectant gel distributed by mentioned retailer. Distribution of such product requires express and capillary delivery, which also means a large number of supporting documents distributed to a large number of customers. With the application of blockchain technology, it is easier to distribute documents and billing. There are also possibilities to complement the master data with information on product composition, allergens, shelf life, and all with insight into one standardized message. With protected flow of information between suppliers and customers, the possibility of human errors resulting in goods returns and additional costs, is fully reduced or eliminated.