A Blockchain-Based Last-Mile Delivery Deployment Model
Creators: name: Shaverdi, Meysam
Publisher: name: RMIT University
Year: 2025
Subjects: classificationCode: 350999
subject: Transportation, logistics and supply chains not elsewhere classified

description: Last-mile delivery (LMD) is the final leg of the supply chain network, is considered the most expensive, most pollutant, and least efficient part of supply chains. Over the past years, blockchain, as an evolutionary technology, has emerged as a solution to improve the logistics industry's performance in general and LMD performance in particular. Considering the evolving challenges of LMD in retail sector and taking the technological-organisational-external environmental and inter-organisational (TOEI) perspective, this study aims to develop a blockchain-based last-mile delivery (LMD) deployment framework to identify the key challenges affecting blockchain implementation in LMD and to evaluate how blockchain adoption impacts overall LMD performance. Each component of the framework, technology, organisation, external environment, and inter-organisational challenges, offers a lens to understand the challenges and opportunities in blockchain deployment, ensuring a comprehensive assessment of its impact on LMD performance. 
Since the blockchain-based LMD is a new research area, a case study approach in this research was adopted. Critical case sampling is applied to identify cases that are particularly information-rich concerning this study. Then, LMD structure of the retail sector in Melbourne’s urban area as a single case study was investigated. The retail industry was chosen due to its significant reliance on LMD services, which directly impact customer satisfaction, operational efficiency, and sustainability, a critical area where blockchain's potential can be maximised. Retail often faces high-frequency, small-volume deliveries, making it an ideal context to evaluate LMD challenges and blockchain's effectiveness. Additionally, the urban retail sector in Melbourne was selected as it offers a manageable and representative case to investigate blockchain's practical applications within a well-defined setting. The data of this study is acquired through interviews conducted with stakeholders from four different groups including ‘blockchain technologists’, ‘policymakers, logistics managers’, and ‘retail managers’. A total of 21 interviews (five blockchain technologists, five policymakers, six logistics managers and five retail managers) were conducted. The interviews possess both experience in the logistics and last-mile delivery (LMD) industry and familiarity with blockchain technology. The selected participants represent a diverse and knowledgeable group, ensuring the study's findings are informed by credible and relevant perspectives. Data analysis involved a systematic approach, employing thematic coding and analysis using NVivo software to identify patterns and themes across the interview transcripts. The process included data transcription, iterative coding, and thematic mapping to align findings with the proposed conceptual framework. Five research propositions were developed, refining the framework and enhancing understanding of the topic. The study also highlights that blockchain-based LMD improves performance, in terms of cost, delivery time, and sustainability.
The proposed conceptual model for blockchain-based LMD deployment incorporates several key sub-challenges under TOEI framework. Within the technological theme, challenges related to security, such as negative perception toward the technology and data privacy, were highlighted. For the immaturity of technology, sub-challenges like access to technology, immutability, and complexity of the technology were identified. Traceability concerns were addressed through delivery verification and route optimisation and efficiency. Organisational challenges included financial constraints and firm size under top management support, while lack of organisational strategies and adaptability and innovation culture were tied to organisational culture. Resistance to change was linked to knowledge and expertise issues and labour rules for changing workforces.
In the external environmental theme, governmental policies faced challenges such as market competition and uncertainties and limitation of space and access in urban areas. Sustainability issues were expanded to include modern slavery issues, pressure from NGOs regarding resource consumption, and lack of ethical and safety practices. Inter-organisational challenges featured different strategies of security and information sharing and standardised information sharing under differences in information sharing strategies and regulatory compliance issues across the supply chain along with conflicting objectives and culture of supply chain partners in differences in regulation and culture amongst supply chain partners, in terms of goals and objectives, technological capabilities, cultural differences and regulatory compliance and legal frameworks, and clear and efficient information sharing among SC partners as well as information asymmetry among SC partners for communication issues in the supply chains. 
Findings of this study revealed that blockchain significantly enhances LMD performance, particularly in cost reduction, improved delivery time, and sustainability. Blockchain serves as a platform technology rather than a disruptive force, enabling enhanced data transparency, real-time tracking, and more efficient resource utilisation. Experts proposed tailored strategies to address the TOEI challenges. For technological barriers, solutions included advanced encryption, scalable protocols, and seamless IoT integration for real-time tracking. Organisational resistance could be mitigated through top management support, fostering innovation, and employee training. Policy advocacy and collaboration with regulatory bodies were recommended to tackle external challenges, while inter-organisational issues required standardised communication protocols and consistent information-sharing mechanisms. 
This study contributes to digital transformation literature by advancing the critical analysis of blockchain deployment in LMD, particularly within the retail sector. By employing the TOEI framework, it integrates expert insights with existing literature, identifying both novel challenges and opportunities. The study underscores blockchain’s role as a platform technology, highlighting the need for organisational adaptation, policy alignment, and stakeholder collaboration. Practically, the findings provide actionable insights for managers, policymakers, and technologists. Managers can better understand the complexities of blockchain implementation in LMD and develop strategies to address key barriers. Policymakers can leverage the framework to design effective urban logistics policies, while technologists can tailor blockchain solutions to address specific logistics industry challenges. The study’s scope is limited to Australia’s retail sector, suggesting future research should explore other industries and geographic contexts. The focus on urban logistics omits end-customer perspectives, a crucial aspect of LMD performance. Additionally, the small sample size reflects the scarcity of experts with dual expertise in blockchain and logistics, underscoring the need for broader participation in future studies. The interplay and interrelations among TOEI variables remain underexplored, providing an avenue for further research. Understanding these interdependencies could enhance blockchain adoption strategies and contribute to more integrated and effective supply chain operations.