Paper id-127: Smart Contract-based

Blockchain Technique for Logistic

Shipping Management System
First Author: Haritha T Presented by
Corresponding author: Anitha A Anitha. A
Vellore Institute of Technology
Vellore

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Agenda
● Introduction
● Challenges
● Literature survey
● Motivation
● Proposed method
● Experimental results
● Conclusion
● References

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Introduction
● The administration of goods and services from the point of origin to the point of consumption is
referred to as logistics shipping.
● This process includes planning, coordinating, and carrying out transportation, warehousing, and
distribution operations.
● In logistics, the blockchain is a decentralized, public system of records that keeps track of all
changes in a real-time record.
● Using this information, businesses may develop a plan to adopt quicker routes, cut out
unnecessary delivery process steps, minimize errors, and save time.

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Key Logistics Shipping Activities
● Route planning and optimization are crucial: When designing and optimizing routes, variables
including distance, time, cost, and capacity are taken into account.
● Inventory Control: It ensures that the correct goods are available at the right times in the right
quantities
● Transport Planning: Managing the delivery of products from one location to another offer
freight forwarding as a service.
● Coordination of Delivery: The last step in the logistics shipping process is delivery
coordination, which involves ensuring that products are delivered quickly and effectively to the
client.

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 Fig.1: Integration of smart contracts and logistic shipping

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Challenges
● Is it difficult for you to coordinate delivery and orders across many platforms?
● Difficult to estimate logistics costs
● Inconsistencies in tracking
● Limited visibility of shipments

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Literature survey

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6th Edition of International Conference on Communications and Cyber-Physical Engineering
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Motivation
● Efficiency: To reduce the need for manual labor, making processes more efficient and cost-
effective.
● Transparency: Blockchain provides a secure and transparent record of all transactions.
● Flexibility: Customized to meet the specific needs of different shipping scenarios
● Collaboration: Facilitate collaboration between different parties in the shipping process.

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Proposed method

Fig.2 Process model of Logistics shipping based blockchain using smart contracts

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● Shipment Initiation: The procedure begins when the shipper submits a request for a shipment,
including information about the kind of products, origin, and destination, and anticipated
delivery date.
● Smart Contract Development: Programming languages compatible with the blockchain
platform, such as Solidity for Ethereum, are used to create smart contracts.
● Carrier Acceptance: A bill of lading, which serves as a receipt for the goods and proves that
the carrier has agreed to deliver them, is typically issued to formalize the acceptance of the
items by the carrier.
● Package tracking: Package tracking is the process of keeping track of a package's route from
its origin to its destination. When dispatched, a tracking number or code is given to the
product.

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● Delivery: The last phase of the shipping process, when the items are transferred from the carrier
to the recipient, is referred to as a shipping-based blockchain employing a smart contract.
● Record keeping: Each shipment's transactions, including pick-up, delivery, and transportation,
are tracked as blocks on the blockchain network.
● Dispute Resolution: The process of settling disputes or differences that may develop between
parties throughout the course of a transaction is referred to as dispute resolution.

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Experiment Results

Fig 3: Orderitem() transaction flow using Remix IDE

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 Fig 4: Cancel order transaction flow using Remix IDE
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Conclusion
Many tedious procedures in the shipping sector, like tracking and confirming the delivery of
products, issuing payments, and resolving disputes, can be automated using smart contracts. This
can result in an improvement in speed and efficiency, as well as a decrease in the need for
middlemen and a rise in mutual trust between all parties.

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 References
1. Helo, P., & Hao, Y. (2019). Blockchains in operations and supply chains: A model and reference
implementation. Computers & Industrial Engineering, 136, 242-251.
https://doi.org/10.1016/j.cie.2019.07.023
2. LiX,LvF,XiangF,SunZ(2020).ResearchonKeyTechnologiesofLogisticsInformationTraceabilityModelBasedon
ConsortiumChain.IEEEAccess,vol8,pp69754–69762.doi10.1109/access.2020.2986220.
3. Saberi S M, Kouhizadeh J, Sarkis and L, Shen (2019). Blockchain Technology and Its Relationships to Sustainable
Supply Chain Management. International Journal of Production Research. Vol 57 no. 7, pp 21172135.
doi:10.1080/00207543.2018.1533261
4. Issaoui Y, Khiat A, Bahnasse A, Ouajji H. (2019), Smart logistics: Study of the application of blockchain technology,
ProcediaComput.Sci,vol160.pp266–271.https://doi.org/10.1016/j.procs.2019.09.467

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