Rural Logistics Transformation Through Blockchain

Abstract

The concept of rural logistics encompasses transport, distribution, storage, material handling, and the packaging of goods in rural areas, as well as the flow of information and funds in support of rural production and consumption. Rural logistics encompasses more than just the outbound flow of agricultural products from rural areas. It includes the movement of agricultural inputs and consumer products into rural areas, as well as the movement of light industrial goods produced in villages. This chapter researches the possibility of the development of sustainable rural logistics and supply chain management through decentralized data storage represented by blockchain technology. Although the benefits of blockchain technology have been most widely researched in the financial sector, major challenges in logistics, such as order delay, damage to goods, errors, and multiple data entry can also be minimized by introducing blockchain technology. Current and rising trends of blockchain technology usage in logistics and supply chain management can be well integrated with the current applications of Rural Logistics in the state of Madhya Pradesh. Blockchain can increase the efficiency and transparency of the supply chain and positively affect all logistic processes, from storage to delivery and payment. In addition to increased transparency and security achieved through blockchain, it is possible to speed up the physical flow of goods. Tracking goods through blockchain can improve the decision-making process with the end result being a more satisfying service for the end-user. Blockchain technology possesses the potential for the creation of new logistics services, as well as new business models. As a relatively new technology, blockchain is designed to achieve decentralization, real-time peer-to-peer operation, anonymity, transparency, irreversibility, and integrity in a widely applicable manner. District Dewas has 80.4% scope for improvement using blockchain technology, Ujjain and Sagar has 82.6% scope for improvement using blockchain technology, Khandwa has 83.1% scope for improvement using blockchain technology, Hoshangabad has 84.4% scope for improvement using blockchain technology, Sehore has 84.7% scope for improvement using blockchain technology, and finally Bhopal has 86.4% scope for improvement using blockchain technology. Blockchain technology offers an innovative platform for a new decentralized and transparent transaction mechanism in industry and business. Features of this technology increase confidence through transparency within any transaction of data, goods, and financial resources. Blockchain technology can easily provide secure business operations in logistics. The goal of this project is to explore the possible use of blockchain technology in logistics processes, to identify the impact of blockchain technology on business transparency, and why it is important to implement blockchain technology in every part of the supply chain.