Freshness-Keeping Strategy of Logistics Service Providers: The Role of the Interaction between Blockchain and Overconfidence

Abstract

As a result of the increasing scrutiny of fresh products, greengrocers are now forced to concern themselves with the deterioration of their products’ freshness and employ blockchain technology as a tracing system. However, in the logistics system, the third-party logistics service provider (LSP) is motivated to be overconfident in order to extract extra profits, thus intensifying the dilemma faced by the fresh agricultural product industry. This paper focuses on the association between blockchain technology and overconfidence, in which the third-party LSP is supposed to overestimate the effect of the retailer’s freshness keeping measures. Differing from the previous literature, we analyze a situation wherein blockchain technology is adopted with explicit execution. Based on the optimal control model, we obtained three main conclusions: First, the overconfidence of a third-party LSP does not damage the logistics system but changes the freshness-keeping strategy of the retailer. Second, interestingly, although blockchain technology performs effectively when it is adopted as an initially established system with a freshness keeping strategy, it is not always a wise decision for managers to adopt a blockchain, especially when adopting it as a countermeasure for overconfidence. Third, we found that blockchain technology has a greater effect on freshness-keeping than overconfidence. Thus, in the fresh agricultural product industry, managers should adopt blockchain technology before overconfidence occurs and pay more attention to exogenous prices and freight to decide whether to adopt blockchain technology.

Time-based multiple pricing policy in a supply Chain with perishable products under bilateral asymmetric information

“…We adopt the Stackelberg model, which is also wildly applied in marketing research [5,15,16,45,50]. Next, we investigate the TMP policy and the information asymmetry problem in the perishable product supply chain.…”

“…As awareness of the deterioration of items, especially fresh products, continues to grow, perishable products are becoming increasingly important to green grocery retailers [54,66]. According to a report of the Food Market Institute, the perishable product industry has already reached 50.12% of the total supermarket revenue about 383 billion dollars, and it still has been prompting to 50.62% of about 444 billion dollars before 2010 [17]. The freshness is regarded as one of the most vital properties of perishable products [23].…”

“…To theoretically answer the above research questions, we adopt the Stackelberg game model [11,14,15,16,34,50]. The sequence of decision making in this paper is as follows.…”

Research on emergency logistics information traceability model and resource optimization allocation strategies based on consortium blockchain

“…However, there are challenges in directly applying it to emergency logistics. Pan H Y has noted that in environments with high data turnover, the consensus mechanism of consortium blockchain needs to be optimized to ensure efficiency and security [21][22][23][24][25].…”

Logistics service strategy for e‐commerce supply chain: Interactive impacts of cost reduction effort and fairness concern

“…The provision of logistics service requires investment of resources and costs so that logistics service cost is an essential component (Tu et al, 2023). Lowering logistics costs enables businesses to maintain competitiveness while delivering high-quality logistics service, creating space for profit growth (Wang et al, 2023).…”