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Introduction
New disruptive technologies in the market, such as the Internet of things (IoT) and blockchain
technology (BT), can contribute to solutions for the supply chain (SC) and different logistical
processes, allowing for efficiency and transparency. It is already possible to track the location
and temperature of products in real-time, providing transparency for the entire SC
(Pournader et al., 2020; Zelbst et al., 2019). BT, according to Bumblauskas et al. (2020), usually
connects to other technologies, such as remote sensing and artificial intelligence (AI), to
collect and analyze data. In this specific case, customized sensor networks can track the
location, time, temperature and humidity levels by sending the data to BT. Within BT,
information is digitally linked to each product, creating a record to prove provenance,
conformity, authenticity and quality.
BT is still evolving, but it is already possible to state that applications related to the SC can
contribute to the extended visibility and traceability of products, and it can also act as a tool
applicable to the different inherent steps and processes of this area (Calatayud et al., 2019;
Gligor et al., 2019; Morkunas et al., 2019; Nimmy et al., 2019). Traceability has strong potential
for the food area (Dobrovnik et al., 2018; Francisco and Swanson, 2018; George et al., 2019;
Leon, 2017; Morkunas et al., 2019), probably because it requires a reliable means of
monitoring and product provenance. International Journal of Logistics
Management, The
Vol. 32 No. 3, 2021
pp. 995-1029
Funding: This study was funded by Conselho Nacional de Desenvolvimento Cientıfico e Tecnologico - © Emerald Publishing Limited
0957-4093
CNPq, Brazil (n. 420464/2018-2). DOI 10.1108/IJLM-07-2020-0299
IJLM Considering the importance of a safe food chain for consumers and the advent of BT as an
32,3 instrument capable of contributing to improving this relationship, this research analyzes the
possibilities of applying this technology in a company that acts as a distributor agent and
supplies to a group of food service (FS) companies. The intention is to evaluate the possible
applications of BT to improve operations in generating reliability in the relationship with
suppliers and customers, providing agility and transparency in information and contributing
to the food safety of the SC. From this perspective, the central focus of research is to
996 understand the implications that involve functional processes and where it would be possible
to use this technology. Therefore, the research questions that this paper addresses are:
RQ1. In which operational processes in FS distribution can BT be applied?
RQ2. What would be the effects of this application on reliability and food safety?
Analyzing, organizing and abstracting knowledge about blockchain technology in the
supply chain (BT-SC) through a practical case creates the opportunity to better understand
the theme, providing insights both for managers and researchers. The need to expand studies
on the possible applications of BT-SC through the presentation of real cases has been
expressed in many BT studies (Calatayud et al., 2019; Colicchia et al., 2019; Dobrovnick et al.,
2018; Francisco and Swanson, 2018; George et al., 2019, Hoek, 2019; Montecchi et al., 2019;
Morkunas et al., 2019; Nimmy et al., 2019; Prasad et al., 2018; Wong et al., 2020).
Theoretical background
Regarding what should be examined in field research and the information collected, the
following theoretical discussion aims to support the study. In this context, this section on BT-
SC emphasizes the role of platforms that support implementation in this area (George et al.,
2019; Treiblmaier, 2018; Vivaldini, 2020; Wang et al., 2019). It also discusses smart contracts
as an instrument of agreement between parties and validates their application (De Giovanni,
2020; Dolgui et al., 2020). Finally, it addresses economic viability in terms of the necessary
investments (Longo et al., 2020; Stranieri et al., 2021; Wong et al., 2020b). Specifically, BT in
the food industry is addressed, based on the fact that the factors capable of justifying its
adoption are directly related to the SC’s ability to ensure traceability, and in terms of to what
extent this will be reflected in food safety (Duan et al., 2020; Hao et al., 2020; Ling and
Wahab, 2020).
Methodology
A qualitative approach based on a case study (Eisenhardt, 1989; Yin, 2014) was used to
conduct this study. This approach is more appropriate to generate theory (Yin, 2014),
considering that the study of a current phenomenon within its real-life context (BT in an FS
distributor) is representative (Fawcett et al., 2014; Ketokivi and Choi, 2014). As well, the
theory (about blockchain in SC) is still being developed (Barratt et al., 2011; Voss et al., 2002).
Figure 1, being directors, owner, managers, IT consultants and supervisors related to the
company’s SC.
The logic of interactions and research interviews was as follows:
(1) The project was defined based on exploring the work carried out by the group of
distributor professionals (managers in the area of customer service, supply, transport
and warehousing), by the IT director (primary contact of the researcher) and by an
external consultant (representing the ERP company used by the distributor, also the
owner of the TMS and the WMS).
(2) After the project was defined, the research was carried out with professionals from
the SC companies (customer and points of sale, suppliers and freight company).
Single case
The case provided the researchers direct participation alongside those involved in the project,
obtaining information not always accessible by other methods (Flyvbjerg, 2006; Voss et al.,
2002; Yin, 2014). This pragmatism can contribute to the development of the theory
(Gammelgaard, 2004), possible in single cases like this. The circumstances capable of
justifying the case (Yin, 2014) were:
(1) It is a critical case because the theoretical moment is still under development, and
there is a little foundation based on practice.
(2) The circumstances offered by the case are rare and exclusive since the immersion of
the researcher in a practical application for the development of BT in the SC is unique.
(3) The case is representative for studying an economically important segment (food
distribution in the FS), a large FS distributor in Brazil, a new technology that is not
very present and an application aimed at food safety (socially relevant).
(4) The chosen case can reveal new insights by studying, in addition to the distributor,
the first level agents of SC. This scope allows a better understanding of any conflicts
and differences that projects of this nature face.
(5) As the study takes place over a period (about one year), a longitudinal case is
characterized, allowing the author to interact with the companies (people) involved in
the project.
Search quality
The following steps contributed to strengthening the narrative, information and
considerations pointed out in the study: the observation and combination of the author’s
transcriptions with the material obtained (operational flows and the application proposal
generated by the IT director), interaction with interviewees, participation in development
team meetings and the possibility of returning calls to interviewees. They meet the validation
criteria proposed by Yin (2014):
(1) Construct validity. The direct interaction of the author allowed capturing much
evidence from different SC actors, making it possible to connect the objectives,
propositions and RQs to the sequence of the collected information.
(2) Internal and external validity. This was ratified by analyzing the information obtained
from different sources (visits, meetings, interviews, interactions and phone calls) and
by the flows presented and was supported by the research theory. It is worth
highlighting the importance of interaction with the company’s managers and their
support in external interviews. This procedure helped to improve the understanding
of the researcher, rendering the information obtained more valid.
(3) Reliability. This is based on the evidence from the research protocol (Appendix), on the
description of the information and examples pointed out by the study.
Field research
Overview of food service (FS) globally
FS refers to the sale of food and beverages that are prepared for immediate consumption or
delivery, or to take home. FS establishments are classified into two sectors: shopping
facilities, including fast-food restaurants, catering, nightclubs and recreational
establishments; and non-commercial establishments, including food operations that
operate within the facilities of organizations such as hospitals, schools and military bases
(JLL, 2017).
Every day, 7.7 billion people worldwide eat, consuming 14.5 million tons of food (Deloitte,
2019); part of this amount makes use of the FS market, which has historically been growing
IJLM With what interviewees contributed
32,3 Interviewed With field research With the study Estimated interview time
Distributor’s Allowed to carry out Helped to understand the 07.02.2019 5 Call 5 30 minutes
IT director the research interviews operational flow and in 07.16.2019 5 Meeting 5 1.5 hours
with employees and which processes BT can 07.29.2019 5 Meeting 5 45 minutes
other agents contribute to improving Monthly meetings 5 10 hs
1004 food traceability and 12.20.2019 5 Call 5 30 minutes
safety
Clarified the intention The model of conducting
of the project the project
Created performance Clarified details of the
teams and monthly processes helped to
meetings, and led validate the researcher’s
discussions understanding of BT’s
applications and
features. It allowed
interaction with meeting
participants, clarifying
doubts and confronting
understandings
Defined the BT Guided the discussions
application macro flow and helped map the BT
application in the
processes
He presented the Allowed the researcher
project to those to conduct the interviews
involved. He clarified with external agents,
details, features and with questions and
limitations, and how the discussion focused on the
project would be research focus
conducted
Distributor Clarified the processes In the design of flows, 07.27.2019 5 visit 5 2.5 hours
managers by area illustrating the Monthly meetings 5 10 hs
applications of BT Interactions 5 2 hs
Provided the It was possible to 12.06.2019 5 Call 5 30 minutes
company’s original differentiate what is 12.20.2019 5 Call 5 30 minutes
operating flows procedural (registration 01.01.2020 5 Call 5 30 minutes
of operations) and what
is a qualifier
Exemplified and To understand some
explained most of the conflicts and divergences
author’s doubts in the information
collected. They
contributed to the
validation of information
Were fundamental in Contributed to the
the discussions on narrative of the case
where to apply BT
Table 1. functionalities in the
With what processes
interviewees
contributed (continued )
With what interviewees contributed
Blockchain for
Interviewed With field research With the study Estimated interview time food service
distribution
External IT Helped to understand BT possibilities for FS Monthly meetings 5 10 hs
consultant the integration distribution Interactions 5 2 hs
possibilities offered by
the platforms
Supported or refuted Technology limitations 1005
applications that would and vision on BT
not be viable due to platforms
technical limitations
Clarified how Vision on necessary
information could be investments
captured, possible risks
and failures
Helped in the definition Understanding that the
of minimum application is viable for
requirements for those the case
involved
Customers Ratified support for the Importance of integrated 11.13.2019 5 Call 5 1 hour
(franchisors) project and the SC 12.20.2019 5 Call 5 2 hours
improvement that
operations can provide
Raised questions about Risks present with
risks in the information permission to access
generated information
Addressed problems Failures, investments
with connections and connections
between agents
Demonstrated concern Records and information
with assertiveness in exposes companies
sales projections
Highlighted the The importance of the
importance of project for the client’s
controlling operations business
and generating
information
Customers The quality of receipts Failures are recorded and 11.13.2019 5 Call 5 1 hour
(points of sale) can improve transparent to all 12.20.2019 5 Call 5 1 hour
Demonstrated concern How flexible the
that some decisions qualifiers would be
may be fought
How to act with a lack How to manage
of access or inadequate unforeseen events
access
Delivery time could be Impact on operating
impacted costs
(continued ) Table 1.
IJLM With what interviewees contributed
32,3 Interviewed With field research With the study Estimated interview time
consistently, demonstrating the trend of consumers eating outside the home. The size of the
global FS market was worth US$3.4 trillion in 2018 and is expected to reach a value of US$4.2
trillion by 2024, recording a 3.6% annual growth rate (CAGR) from 2019 to 2024 (Research
and Markets, 2019). Some of this growth is driven, in part, by technology and mobile
evolution. Consumers can get meals whenever and wherever they want (JJL, 2017).
The case
Company background. The company offers logistics solutions in different segments
(agribusiness, food, consumer goods and FS). The food area acts in compliance with all
food safety protocols (legislation and HACCP), and they specialize in the cold segment (cold
and frozen). It has 22 distribution centers (DCs) spread across Brazil, with FS’s central
operation in a DC in S~ao Paulo, with support for transfers and cross-docking in other units.
The company’s systems are integrated into its ERP, working with WMS, TMS, temperature
control systems in cold areas and the traceability and monitoring of distribution vehicles. In
FS, customer relationships are managed through an Internet portal, accessible on desktops
and mobile platforms, enabling the availability and exchange of electronic information for
customers, including the delivery of products at the point of sale.
Business case. Sales for the food industry in Brazil, including FS and food retail, expanded
by 6.2% in 2019, totaling US$103 billion. The FS channel (food prepared outside the home)
accounted for 33% of this total (US$34 billion), while food retail accounted for 67% (US$69
billion). In the last 10 years, industry sales to the FS channel have grown by an average of
11% per year, compared to 9% for food retail in nominal terms (https://www.abia.org.br/
cfs2020/omercadofoodservice.html).
According to the interviewed IT director, the distribution specialized in FS in Brazil, called Blockchain for
“full-delivery” (operators who manage the customer’s complete operation, encompassing food service
buying, storing and delivering the products), has four significant competitors who compete
for large accounts: franchise chains, restaurant groups and hotels. Attracting such customers
distribution
is achieved through differentials incorporated into the services, such as exclusive deliveries,
vehicles, dedicated drivers, meeting specific qualitative rules and storage areas with
dedicated monitoring. In this way, the studied company understands that BT would be a
substantial differential in the market to retain existing customers and gain new ones. The 1007
company was also considering whether BT applications could be used in the group’s other
business segments.
Business problem. For the company, the problem regarding BT adoption lies in the fact
that there are no applications in operation yet, not even outside Brazil (specifically for FS).
The experience of solutions applied to the different blockchain platforms is limited, and its
practical application is uncertain. Another aspect is that there are no definitions of where BT
could be applied in the different processes that exist in food distribution.
In this scenario, the organization decided to find out whether BT would be viable in its
operations, ultimately deciding that it could be applied and could respond to two significant
factors for customers: traceability and food safety.
Project overview and objective of the study. The distributor’s project was intended to map in
which operational processes BT could act to improve traceability and food safety by
providing real-time information to the SC. Consequently, information from the BT application
would encourage the distributor and SC agents to assist in business management. After this
stage, the assessment of technical needs and investments in the SC, a first involvement of the
agents in which the applications would be discussed, the pricing and executive schedule and
the company’s board’s presentation would complement the work.
Within the context of the case outlined above, the aim of the present study is to evaluate
the BT functionalities in the FS distribution processes in relation to guaranteeing traceability
and food safety in its different functional stages. It also aims to take into consideration the
interactions, relationships and interviews, assessing how the actors in this chain understand
the relevant factors of BT application, such as the use of platforms, the role of smart contracts
and the influence of investments.
Relevance of the study. Traceability and food safety in the food sector today have become
mandatory. However, how these can be achieved through BT remains a challenge. In this
sense, understanding how and where BT can be applied in an FS distributor becomes
relevant because, first, the distributor is a link between producers and the point of sale, and,
second, this is not only relevant to the FS sector but also illustrates BT application in
operational processes, which is probably similar in many other segments. This includes
discussing the impact of this application on other SC agents and capturing valuable
perceptions regarding how this type of project is understood.
Transport
Routing validation
Figure 2. Vehicle monitoring view
Return
Understanding Output Vehicle temperature view
blockchain technology
(BT) in food Final delivery validation (quantity and products)
service (FS) Delivey Validation of final delivery (temperatures delivered)
Validation of product returns
Figure 2 represents the macro processes and the sequential flow of the product until final Blockchain for
delivery. It depicts the influence of franchisors on new products, the beginning of processes food service
with the order of the point of sale, moving to stock through ordering suppliers, the generation
of stock in the warehouse, the picking process and shipping, through transport steps that
distribution
involve routing and defining deliveries, and ending with delivery by the freight company.
The predefined points for BT implementation relate to the processes in which SC agents
can only view (obtaining information only) or have to validate an operation or part of it
(confirming its execution or movement). As a guide, managers decided to analyze the internal 1009
and external flows of the processes to discuss the probable functionalities and viability
for BT.
Finally, it was decided that the group’s objective was to define where they could apply BT,
with many technical issues, costs, acceptance and types of application, for example, being
dealt with later or resolved as the project defined itself and developers began to be contacted.
Therefore, the group’s focus was to define what they wanted and how they could use the
technology.
Order
According to what was presented, they classified order into two groups:
(1) Originating at the point of sale (referring to the purchase order of the products needed
for the operation): The distributor is the leading supplier of the franchisor, and the
products are acquired by the points of sale through orders placed on a relationship
portal on the web with several functionalities, the most important among them being
the placing and execution of the purchase order.
(2) The distributor order directed to the supplier of inputs: The purpose of this is to supply
the stock of products that serve the point of sale. This is driven by demand at the
point of sale as orders are placed and confirmed. The distributor’s supply area
manages this operation and balances inventory and demand, generating the supply
order.
Figure 3 displays the flow of orders and illustrates where BT could be applied. The following
features were discussed:
(1) FS customer orders (outbound):
They must be placed on the distributor’s relationship portal, according to the
delivery schedule predefined with each point of sale. This process has two steps:
the first when it enters the data (and has a time limit to change, if desired), and the
second when it makes the order (when it can no longer be changed). The
blockchain record must be confirmed only when the order is completed.
The processed order, which has already undergone the stock commitment,
separation and preparation for dispatch, has its information registered in the
blockchain and is ready to be loaded. The same occurs with orders loaded and
delivered to the customer.
(2) Ordering supplies (inbound): Whether it originates from the need to replenish stock or
a new product (informed by the franchisor), this also goes through two stages: the
IJLM
32,3 BT
Changes
Portal Web Transport Point of Sales
BT BT BT
Order Placed Order confirmed Order processed Order forwarded Order delivered
1010 Outbound
Order warehouse BT
BT BT
Inbound Supplier Order processed Order forwarded Order delivered
Figure 3.
Order flow Other inptus 8 week schedule Confirms 2 weeks BT = Blockchain
correction of the schedule (which occurs for eight weeks), and the execution of orders
for the coming two weeks. In this step, the operation must be registered within the BT,
as well as when the warehouse acknowledges receipt of this order.
Warehouse
The processes that relate to warehouse operations, represented in Figure 4, are described in
the following subsections.
Receipt of products (inbound). Following a predefined delivery schedule of the day, the
warehouse receives the trucks, performs the visual evaluation of the vehicle’s condition (such
as cleaning, the temperature recorded in cold equipment) and starts checking quantities and
temperatures of the products. These records are made in WMS and, in the BT, must be
confirmed by the vendor and made available to the agents involved.
Inventory and product entry. The distributor’s view of the stock of products must be made
available to the franchisor and suppliers (restricted to their products), and any movement
effected (entry and exit) must be registered in the BT. Inventories of finished products at
suppliers, on the other hand, must be made available to the distributor and the franchisor.
Routing
BT BT
Outbound Order confirmed Picking Conference Loading
BT
BT
Stock
warehouse WMS Transport
BT
BT Qualifiers BT
Figure 4. rejection
Warehouse flow Supply schedule BT
BT = Blockchain
There should be a restriction of information to the point of sale and to the carriers to avoid Blockchain for
conflict of interest. food service
Deliveries made by suppliers to the distributor’s warehouse are checked (quantity, and
qualifiers criteria such as product integrity, expiration date and supply temperature). In this
distribution
stage, the quantity and qualifiers criteria must be registered in the BT and validated by the
suppliers before definitively incorporating the distributor’s stock.
In the case of qualifiers related to storage (product temperature and storage locations) and
product shelf-life, the information must be available online in the warehouse temperature- 1011
control application, the stock system, as well as registered and visible in the BT.
Product picking. The picking is characterized as a primarily internal operation;
information on the order regarding picking and completed picking (ready for loading)
must be made available, only to the point of sale and franchisor, being confirmed in the BT by
the distributor.
Loading of products. Preliminary information regarding qualifying criteria must be
confirmed by the distributor’s loading operator, including vehicle checks such as whether the
physical characteristics of the vehicle (e.g. external and internal cleaning and breakdowns)
meet the standard and whether the internal temperature of the vehicle matches the pre-
cooling pattern. Subsequently, the cargo is checked before shipment (both quantity and
temperature of the product shipped). This information must be registered by the operator in
the BT, validated by the freight company and made available to everyone.
Transport
Transport involves partner freight companies hired exclusively to make deliveries from the
distributor. They are supported by contracts and dedicate vehicles and labor for these
operations (see Figure 5), encompassing:
(1) Routing: This process starts with the confirmation of orders from points of sale. From
there, it defines the routes that are passed on to freight companies and the operational
processing area of the distributor, which generates all the necessary information,
feeding the interfaces to start operations, as well as the TMS. The respective routes
generated and passed on to freight companies must be confirmed within the BT.
(2) Loading: The freight company defines the vehicle to load, first undergoing an
inspection by the distributor (qualifying criteria such as cleanliness, the physical
Order
Confirmed
Qualifiers
Outbound
BT
Transport BT
Freight Company
Picking
loading Sales point Figure 5.
Transport flow
Warehouse BT = Blockchain
IJLM condition of the vehicle and especially pre-cooled temperature) before the loading is
32,3 released. This must be registered and confirmed by the distributor within the BT.
(3) Monitoring: As soon as the vehicle leaves the warehouse, the vehicle and delivery
monitoring starts, which is supported by the freight company’s applications and
passed on to the distributor. The freight company provides access to the monitoring
portal, and everyone can follow the route information (where they are) and the
1012 temperatures being applied to the cargo. The monitoring information must be
registered within the BT.
(4) Delivery: The delivery professional, together with the person in charge of the point of
sale, records the temperatures of the delivered products, checks the quantities and
effectively accepts them, generating confirmation of delivery within the BT. If there
are any discrepancies or any products are rejected, they should reject and return the
product and register this within the BT.
Process qualifiers
An essential step in the registration process that underpins the credibility and transparency
of information is the qualifiers of the processes (Table 2). These requirements are product-
quality criteria relating to cold-chain warranty (applied only to products requiring
temperature control) and the shelf-life of the product, and should, therefore, be recorded
within the BT.
The qualifying steps in the receipt of products carried out by the distributor at its
distribution center involve the hygiene and cleanliness conditions of the delivery vehicle, that
is, establishing validity and temperature requirements, and checking for any damage that
may compromise the storage and distribution of the products. All these steps must be
recorded and validated by the suppliers within the BT before the distributor can incorporate
the products into the stock.
Internally, regarding the correct storage of the products concerning the cold chain, the
distributor must make available the internal temperature records of the storage areas and the
products (available in the monitoring and control systems), demonstrating the maintenance
of ideal storage conditions, as well as making available the shelf-life of the products and the
conditions under which they are being loaded. This information must be registered in the BT
and validated by those responsible.
When delivering to points of sale, during the journey, the vehicle of the freight companies
must make available via BT the online records of the temperature of the environments in
which they find the products. Upon delivery, with the validation of the point of sale manager,
the expiration date and the temperature being delivered must be recorded.
They showed interest in the information of the entire upstream chain (suggesting
standardized and more intelligent labels capable of registering information from since the
generation of the raw material), in terms of connectivity between agents and in dealing with
information that would not be online or wrong. For some of these questions, there were
answers already discussed by the distributor’s team, as in the case of connectivity via the BT
platform, but not for others.
Starting with the suppliers’ registrations and validations, the next step would be for them to improve
the information regarding the production processes, including on the labels of the product boxes.
One of the franchisors warned of confidentiality issues (risks of unauthorized access) and
ratified the importance of rigorous protocols. They highlighted that a freight company that
operates for different franchises cannot access information other than the delivery it is
performing, and that once the delivery is finished, it would not be able to re-access it.
Point of sale. Managers wanted deliveries to be more reliable and to improve the qualifying
criteria. They wanted to know the access they would have within the system to view
information, such as product stock and product temperature during transportation. They
also expressed doubts about the validation they must perform at the end of delivery,
regarding not only the quantity but also the temperature of the products. One of the managers
explained that, in many cases, they received a specific product because they needed it, but
IJLM that the temperature measured at the time of delivery was outside the standard advised by
32,3 the franchisor (although, in some cases, within the standard indicated by the manufacturer).
It was observed that many points of sale did not have access to the Internet and computers
at the time of delivery (many deliveries occurred outside regular business hours), and this
could be a complicating factor. However, it was clarified that the validation would usually be
made in the delivery system via the online delivery person’s smartphone.
1014 We have cases in which the product is delivered at dawn, and the employee who receives it does not
access our computers. We also know of some highway stores that have no Internet signal.
Suppliers. A relevant fact for suppliers was that the proposals did not include BT in their
internal processes. Only the order validation data and deliveries were requested. This
proposal was seen, by all respondents, as a facilitator, because, for them, there would be no
interference or adaptations to meet protocols or requirements that would affect them.
However, two suppliers stated that they were already ready for traceability from the entry of
the raw material onward, since much information was already on the label (QR code) of their
product, or they could even adopt the RFID (observing the referred costs).
There were considerations about having to validate the rejection of products made by the
distributor (outside the qualifying criteria) because, according to them, there were cases
where there could be a conditional receipt, for which they would assume the responsibilities if
problems occurred at the point of sale. This possibility was not accepted by the distributor or
ratified by the franchisors. They also claimed that they should have access to all information
(related to their products) available in the BT.
It is difficult for us to accommodate product losses if we cannot see all the information on storage and
deliveries. Thus, after the distributor has accepted the product, our responsibility for delivery at the
point of sales ends.
Regarding connectivity, everyone said they were prepared with compatible systems to
support different connections. However, they signaled that the use of specific platforms for
the BT functionality could be a viable alternative, requiring their attention even for
validations.
Freight companies. The owners recognized the importance of the tool, but with a few
caveats. First, although they considered having the distributor’s validation of the storage and
loading temperatures of the products available an advance, they recognized that there were
some complications regarding (in)correctly taking these temperatures, as they were
influenced by the type of product, the characteristics of the refrigeration equipment and
how the warehouse operator collected the temperature. According to them, this was a weak
point, and it could become a complicating factor when there was a problem with the qualifiers,
as some companies would be punished.
Having the record and the history of the temperatures of the products, available to everyone, is good.
The temperature in the transport change with each delivery that made. This understanding concerns
me and can penalize the freight company.
Second, along similar lines, they warned that the temperature of the truck’s environment
might not reflect the temperature of the product, because the refrigeration equipment had its
operational specificities, and what was recorded (for cold generation) did not reflect the
product temperature. Further, there was the issue of temperature-taking at delivery, which
was influenced by the external environment when the truck container was opened.
Conflicts and doubts raised
Several doubts raised by the distributor’s team meetings were noted by the author. The most
relevant are presented in the following subsections.
Temperature recording (qualifying criteria) in the cold chain. Due to the characteristics of Blockchain for
the operation, the temperature recording may not be entirely accurate. This is the case for food service
data captured by automated sensors, such as truck equipment, which record the temperature
being generated, as well as the temperature in the compartment, but not in the product. This
distribution
could confuse the participants, cause product returns, leave an open door for complaints
without merit and so forth. The same occurs inside refrigerated warehouses, since the cold-
generation equipment shuts down for defrosting, for example. Using recorders in each
product, or by batch, would not solve the problem either, because in moments like delivery, 1015
hot air enters and tends to generate an unreal record.
What information should be available, and to whom. Several doubts were raised by
participants, all of which would require further investigation, regarding which processes
would be validated and registered in the BT. Concerns were also raised regarding which
records would be only informative (i.e. could not be edited).
Connections and infrastructures between companies and access to the BT. Aspects related
to the loss of connectivity in deliveries and routes were also an area that generated more
doubts. In such cases, they would not have the information online, and it would have to be
downloaded later offline.
Regarding access to the BT platform (this being the solution adopted), it would be via the
Internet, being controlled and restricted according to different permissions (queries or
inputs). Doubts were expressed regarding how all applications that generated information
and confirmations would be accommodated on this platform.
Benefits of implementation. In interviews and the author’s interaction with research
participants, the value most expected by professionals was the maturing of relationships. The
fear of some was that the internalization and defense of their own interests could lead to the
BT being used to pass on problems rather than to solve them or propose improvements.
Despite this, they recognized that the acquired transparency would be important to adjust
conduct and standardize the agents’ posture, since it would be visible via the BT.
The visibility of the cold chain was mentioned by several interviewees, mainly by
franchisors, as one of the greatest benefits. For the point of sale and for the franchisors,
meeting traceability requirements (even partially) would be an improvement.
Freight companies expressed a certain fear of understanding the temperatures captured
by the equipment. However, they also recognized that the cycle was closed, and problems that
may come from suppliers, from storage or from delivery would be more evident.
Registry errors (necessary changes). Incorrect records, especially those that had already
been validated, as in the case of temperature records performed by defective devices, or even
records of incorrect operations, led to doubts being expressed by the team regarding on how
to manage them. Initially, it was suggested that these issues should be corrected in the same
way as was currently done, that is, to evaluate the registration in the BT and to clarify issues
with the SC agents.
Investments. The survey of the necessary investments in infrastructure and software
would be a second stage of the project and would be conducted directly by the IT director.
However, among the team, suppliers and customers, there was a concern regarding how to
combine all the needs on a single platform capable of aggregating each agent, customizing the
usage charge. One of the franchisors mentioned the possibility of having a system capable of
handling information through a database providing an analytical management system,
although this was not further discussed by the project team.
Identification of products (tags, QR, RFID, barcodes). Questions were raised regarding the
implication that the current barcodes were not standardized and did not contain all the
information necessary for total traceability, including the entire history of the supplier. The
respondents commented that it was a question that was difficult to resolve because it
IJLM involved cost directly, and depending on the value of the product, adopting a standard would
32,3 make the supply unfeasible (in the case of using RFID, or even QR codes).
Smart contracts. According to the IT director, this tool would only be formally adopted
when it involved payment transfer transactions. The qualifiers agreed between the agents
would be adopted as an instrument along the lines of the smart contract. His understanding
was that the relationship between the different agents was healthy, positive and
participatory. These factors would be enough for them to comply and adopt BT in their
1016 suggested areas. This line of thought was also followed by suppliers, carriers, franchisors and
points of sale.
Case analysis
The distributor’s reason for adopting BT is commercial in nature, based on differentiating
itself from the competition, not only to retain existing customers but also to win new ones. For
the distributor, technology, in addition to the benefits inherent to its main characteristics of
bringing transparency to transactions and providing a means of tracking products and
obtaining information (Montecchi et al., 2019; Prasad et al., 2018), can constitute a commercial
differential in the SC context (Cichosz et al., 2020; Shahid et al., 2020).
It is necessary to understand that the distributor is a company involved in “full-service,” in
which it incorporates all the supply management needs of its customers. In other words, it
manages the purchase of products, controls the stock to balance it with demand and makes
deliveries to each customer’s point of sale. It has a large proportion of the SC agents directly
related to its processes, which favors the integration of BT and defining where to apply it. In
this case, the relationships and integration considered necessary in the application of BT
(Kumar et al., 2020; Tsolakis et al., 2020) are already established.
As shown in Figure 2, relating to how BT processes could be applied to the distributor, it is
clear there is a pre-definition of the companies involved in each stage. Although BT is an open
and transparent instrument (Bumblauskas et al., 2020; Li et al., 2018), the case illustrates that
in the technology applied to private companies, the tendency is to have access restrictions.
Companies would be limited to providing, validating or obtaining information (Casey and
Wong, 2017; Min, 2019).
The study embraced the concept of using validation logic only from the initial stages of the
processes. In other words, the development team worked on BT application only on key
processes (orders, warehouse and transport), defining where the technology would be applied
and what would be obtained from it. For example, order processing would only be validated
via BT when it could not be changed further (both the order from the point of sale and the
order sent to the supplier). In this case, BT’s focus would be recording data and information
that validate operations and qualifying criteria (characterized by storage and transport
operations). Therefore, the aim is to generate credibility and strengthen reliability in
traceability, using technology for this purpose (Duan et al., 2020; Mondal et al., 2019).
In storage and transport, data capture equipment (fixed readers for storage and vehicle
temperatures, and mobile data and temperature readers for products in the warehouse or in
vehicles) is the main validator of information for traceability and food safety; therefore, BT’s
integration and functionality are mandatory (Rajamanickan, 2019; Treiblmaier, 2018). On the
other hand, these are the areas that generate the most significant doubt among SC agents,
mainly regarding failures and possible distorted interpretations of the captured data
(Tsolakis et al., 2020; Zalan, 2018). These questions call into question the ability to generate
credibility in the SC and guarantee food safety (Duan et al., 2020; Prashar et al., 2020).
Regarding traceability and ensuring food safety, one of the study’s main contributions
concerns the incorporation of qualifiers into the project. These qualifiers, related to the
product flow, are understood through the instruments that define the standards established
to guarantee the security intended in the SC. They require the validation of SC agents, which Blockchain for
allows the product to proceed to the next process. Consequently, they are responsible for food service
ensuring the quality expected by the SC. However, the so-called qualifying records of the
infrastructure (warehouses and trucks) are dependent on the equipment that generates the
distribution
cold or captures the temperature at a specific point. In this case, they are subject to variables
that are not always controlled, which may or may not affect the product’s quality. In this case,
traceability would be guaranteed, but validation is subject to the assessment and
interpretations of those involved. Such cases have also been cited in studies on the 1017
integrity of food (Ling and Wahab, 2020), the analysis of different case studies (Patelli and
Mandrioli, 2020) and traceability in agriculture (Demestichas et al., 2020). However, all of them
lack analysis on the interceptions to which the data are subject.
The team proposed using BT platforms with applications directed toward SC agents
capable of integrating the captured information (Keohler and Pizzol, 2020). This would enable
staggering the stages of development and the companies’ entry (Vivaldini, 2020). Some
questions about such platforms raised in prior studies (Gonczol et al., 2020; Hew et al., 2020;
Shahid et al., 2020; Tsolakis et al., 2020) include:
(1) Do platform developers have solutions capable of meeting FS distribution
requirements?
(2) How many customizations would be needed? How much would it cost?
(3) How much would maintenance cost?
(4) How would they integrate with applications and data capture tools present in
different locations and SC agents?
The studied case presents companies and their professionals already aligned with the
interests of the SC. This alignment could lead to their indifference regarding the application of
smart contracts (De Giovanni, 2020; Montecchi et al., 2019), although the present study did not
find any evidence that this would be an impediment to the use of BT. However, the validation
of qualifying rules imposed in the processes and validated in BT constitutes an indirect way
of accepting contracts (Sternberg et al., 2020; Tan et al., 2020). Despite the informality
witnessed in the present study, several other studies have in contrast noted formality
(Colicchia et al., 2019; Wang et al., 2019). The proposed application of BT according to the flow
of the distributor’s processes confirms the possibility of smart contracts being applied since
they control the flow of transactions at each stage of the processes (Dolgui et al., 2020; Zhang,
2019). The formalization of the smart contract in the case studied, incorporating the
validation of qualifiers, can be seen as an instrument capable of mitigating many risks.
Consequently, this favors the desired food safety (Kayikci et al., 2020; Min, 2019).
Complementing the case analysis, Table 3 contextualizes relevant points pertaining to BT-
SC theory and the studied case.
Academic contributions
A case that discusses BT in the distribution processes in FS offers academics and managers
much information and is capable of fostering different ideas on the subject. For example, how
the project was carried out (with a manager leading and guiding the team, with open
discussions with different functional areas of the company, seeking the consensus of the
leading managers in monthly meetings) is a BT-project-development approach that can be
questioned regarding whether it would be applicable to other types of organization.
Considering the importance of FS and cold chain food operations, this research presents
scholars and managers with the possibilities that BT can offer to improve quality, traceability
and food safety. Thus, this study has not only academic but also practical value. The
organization of operational flows illustrating where BT can be applied, as well as
understanding of the points that serve as qualifiers in these processes, helps show that BT
does not need to be present in all processes.
The research was also able to establish that, in projects of this nature, the vision of what is
operational (an activity being performed and registered) and of what is a qualifier (an
established criterion being fulfilled) is relatively important. This is because the expected
result of BT adoption is that it ensures, demonstrates and organizes for all participants that
the product was qualified throughout the distribution, with the processes performed being
essential, but this can be considered a secondary part of the tool, as they are supported by
already functioning applications and software.
The respondents’ doubts presented in this study represent issues that have not always
been foreseen or discussed in previous studies or project proposals. They originated from the
interests of the agents involved; they arose for technical reasons (inherent to the processes),
reflecting the fact that it was not always possible to offer or reflect the precision required by
the registration of information. In other words, a record is a just number, and any data
captured may have interferences capable of distorting reality.
Consequently, the study suggests, within the limitations of a case study, the following
propositions to guide future research:
(1) P1: In the SC, BT will tend to be private, with solutions proposed by commercial Blockchain for
platforms and adapted to companies’ processes. Managers expect to work with private food service
BT through commercial platforms. They believe in finding solutions capable of
responding to the necessary integration of different processes and agents. However,
distribution
the project studied considered BT application in existing processes, regardless of
what was already offered by commercial platforms. This signals that the adaptation
of companies to platforms will face obstacles. In other words, platforms will have to
adapt and work based on different customizations according to each client. The 1021
reason for this is that changing consolidated processes can put operations at risk.
(2) P2: Smart contracts, applied to SC operations, will be an instrument to formalize the
qualifiers of processes previously agreed by SC agents. The smart contract is cited as a
BT instrument, and, conceptually, it should be present in operations based on this
technology. On the other hand, in the case studied, it was not understood as a formal
instrument, but was present in the qualifying criteria accepted by SC agents. This
aspect signals that it is not always necessary to formalize a smart contract to adopt
BT if the criteria are already accepted in the SC.
(3) P3: Investments in technology to capture information in BT from the SC will not always
impede implementation. The question regarding whether the high cost of the
necessary technology capable of generating and providing BT with the relevant
information can impede implementation is a valid one. However, the case studied
showed that many of these needs might already be met within the current operations,
requiring only the means to connect them with BT. This statement is only valid when
analyzing each case individually and is limited to the BT application’s desired scope.
(4) P4: The use of BT in FS, aligned with operational processes, favors traceability.
Traceability appears as the main reason for the adoption of BT in FS. This technology
can provide transparency for SC agents regarding the condition of the products. The
case presented suggests that, to obtain traceability, it is necessary to define BT in
terms of operational processes and product qualification mechanisms. Also, the
instruments for capturing data and information must be present in the logistical flow
of the SC. Therefore, although traceability is a significant motivator for BT, it is
dependent on operational processes.
(5) P5: BT is a complementary SC tool that contributes to, but does not guarantee, food
safety in FS. BT, based on the case studied, appears as a registration and information
tool for different SC agents. This is a positive attribute of the technology. However, it
will also highlight negative aspects in the operations capable of exposing those
responsible. This will undoubtedly tend to generate a greater commitment to
qualifying criteria, leading to improved food safety. On the other hand, many criteria
and issues detailed in the studied case appear as weaknesses, as they are subject to
misinterpretation or the incorrect collection of information.
Practical implications
The description of a real case concerning the possibilities of BT-SC can guide many
managers, serving as an example and fostering ideas on how to conduct projects of this
nature. The method adopted by the company, the description of flows and the role of
qualifiers in BT are practical examples and can be replicated by other organizations that wish
to implement BT in their SC.
The description of the managers’ fears and doubts, as well as where conflicts may occur,
as in the issues of interpretations and failures in the records, illustrates situations that should
IJLM be on managers’ agendas. Questions were posed that will require technical solutions, such as
32,3 offline information handling, the respective software needed to support the operation that
needs to be connected to the BT and the validators that guide the quality criteria and must be
registered. This discussion is directly related to the practice of distribution in FS and cold-
chain management, combined with the demands necessary to meet the requirements of BT.
1022 Limitations
Restricted to the case (the distributor and the other agents surveyed), the findings of this
study are necessarily limited, and any generalizations must be made with care. However,
these limitations should not restrict the examples and suggestions presented only to this
business segment, since they can be replicated in other types of business.
The issues of BT platforms, their applications and the cost were not addressed, which
represent areas that require further research. Also, conflicts between, and the individual
interests of, the agents regarding the tool were not discussed in depth, as the SC proved to be
well integrated around the distributor, respecting the rules and interests imposed by the
franchisors.
Final considerations
The field study underscores the importance of the relationships in an integrated and
articulated chain between agents for the implementation of BT. It also signals the lack of
functional applications for commercial platforms, as its functionality generates many doubts
for those who intend to implement the tool. The method used by the organization studied is a
possible example for replication, but is open to many questions. In theoretical studies,
investments in infrastructure have been pointed out as a complicating factor for the adoption
of BT-SC; it was not seen, however, in this way by the respondents since the organizations
already had many elements necessary to collect and connect the information.
On the other hand, what has been pointed out as BT’s strong point, which is the validation
of users, was a questioned point, and seen as relevant only for those who directly participated
in the generation of the processes or information, as the others could only use the information.
Further, the research raises the question of what is procedural and what is qualifying in
relation to BT projects.
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IJLM Appendix
32,3
1. Theoretical research, problem Search for material and writing March–May 2019
1028 formulation and research
propositions
2. Find case (companies) with Interaction with the Brazilian Food- June 2019 (telephone contact
application in BT-SC Service Association (IFB) – Brazil on June 06)
3. Contacts Twelve (12) companies contacted, one (1) June 2019 (visit to the IFB on
company (food-service distributor) June 27)
selected
4. Preliminary understanding Carried out with the company’s director July 2019 (telephone contact
of information technology on July 02)
5. Understand the company: the Meeting with the director of information July 2019 (visit the distributor
operation and design technology on July 16)
6. Collection of the necessary Face-to-face visit to an operational unit July 27, 2019
information: customers, no. of and area managers
employees, branches, suppliers,
SKUs’ quantity, product types,
warehouse and shipping types,
competitors, etc.
7. Intent and alignment of the Meeting with the director of information July 29, 2019
research technology
8. Restrictions imposed Do not disclose the names of companies, July 29, 2019
people and real business data
9. Research on the Participation, as a listener, in the August-November 2019
implementation project of the monthly meeting of the group 4 meetings
BT-meetings of the development participating in the project (the August 30
group researcher observes, makes notes, September 27
questions if necessary) October 25
November 29
10. Collection of information, (1) Performed through interaction with August–November 2019
secondary data and clarifications the participants (information obtained during
(2) The researcher obtained some the 4 meetings and calls to
operational flow maps that was managers on September 9 and
used to discuss the theme and October 16)
followed the operational flow to
map the delivery processes to the
point of sale
11. Interviews with external (1) Formulation of questions November–December 2019
agents (2) Interviews November 13
(3) Return (when necessary) December 20
12. Organization of collected Transcription and selection of the November–December 2019
material research material (call to the quality manager–
December 6)
13. Understanding of the Focus and select question-related November–January 2019
collected material information and research objective
Table A1.
Research Protocol (continued )
Activity Action Period
Blockchain for
food service
14. Structuring of the material Formulate the sequence of information, December–January 2019 distribution
create flows and means for
understanding the application of the
blockchain
15. Preliminary analysis of Analysis of information, construction of December–January 2020
material and writing flows, tables and understanding of the 1029
case
16. Contact to clarify questions The researcher maintained telephone December 2019–April 2020
contact with the IT director and supply December 20
manager to clarify doubts January 13
17. Final analysis Theoretical analysis and final writing January–March 2020
18. Study review Final review Abril-May 2020 Table A1.
Corresponding author
Mauro Vivaldini can be contacted at: mavivald@gmail.com
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