Dynamic blockchain adoption for freshness-keeping in the fresh agricultural product supply chain

ABSTRACT

During COVID-19, the explosive growth of demand for fresh agricultural products on E-commerce platform has increased the difficulty of maintaining the greenness and freshness in delivery. The traditional cold chain delivery is effective in keeping greenness, but its information asymmetry makes the freshness-keeping activities unable to be regulated, which may lead to the supply chain members giving up their freshness-keeping efforts. Can the blockchain technology effectively solve these problems? We consider a fresh agricultural product supply chain consisting of a supplier and an E-commerce platform (retailer). The retailer is responsible for the wholesale and sales of fresh agricultural products, and determines the blockchain adoption degree and advertising effort. The supplier is responsible for delivering fresh agricultural products to consumers, and determines the greenness investment and freshness-keeping effort. Based on the traditional and blockchain-based fresh agricultural product supply chain, we discuss the dynamic optimization of freshness-keeping effort, advertising effort, and blockchain adoption degree. Results show that the supplier will give up the freshness-keeping effort after receiving the wholesale funds in the traditional fresh agricultural product supply chain, which will naturally worsen the fresh agricultural products. When adopting blockchain technology, the supplier continues to make the freshness-keeping effort in delivery. And five specific settings are proved that blockchain is effective in maintaining freshness. But two other specific settings are determined that it is not suited for adopting blockchain. In addition, compared with the traditional fresh agricultural product supply chain, blockchain adoption can effectively reduce the freshness-keeping effort, advertising investment and goodwill for achieving the same profit margin level, and will not affect the greenness investment decision of the supplier. Our research can provide some insights into the cold chain logistics management of fresh blockchain. © 2022