The Fourth Industrial Revolution (4IR) introduced various advanced technologies, enabling industries to adapt their business models. Many companies have adopted the use of emerging technologies like blockchain technology (BCT) in business-to-business (B2B) operations in an attempt to meet their organisational goals by integrating their supply chains with digital transformation (Zhang & Liu 2022). Blockchain technology has garnered significant global attention as a unique and disruptive technology of the 21st century (Marengo & Pagano 2023).

Logistics involves transporting goods from a starting point to a destination, covering services such as distribution, payment, insurance, border clearance, freight handling, and warehousing (Ahmad et al. 2021). An efficient logistics system ensures the smooth flow of information and items across different phases, expediting processes, and satisfying client needs (De Villiers, Nieman & Niemann 2017). Logistics drives competitiveness, economic growth, and export success. Inefficiencies in the logistics network can create an unfavourable business climate, hindering growth and investment while increasing trade times and costs (Ahmad et al. 2021; UNCTAD 2022).

Logistics is vital in the modern world, contributing approximately 90% of trade through international shipping yearly (UNCTAD 2022). However, logistics has become increasingly complex, facing numerous constraints such as poor communication and a lack of visibility, leading to inefficiencies in meeting customer expectations. Logistics companies that have successfully implemented BCT report improved communication and collaboration among stakeholders (Aylak 2022).

Several studies have focused on the use of BCT in the logistics industry. A 2018 World Economic Forum survey found that 10% of multinational corporations are currently implementing BCT, with another 60% planning to do so within the next 3 years (WEF 2018). Deloitte (2020) reports that 74% of logistics and transportation organisations believe BCT will positively impact their business in the next 3 years. Despite its advantages and the growing interest of industry, BCT still faces several constraints on implementation in the logistics industry. These include the absence of standards, the need for scalable solutions, and concerns about data security and privacy. Furthermore, more research is needed to determine the practical applications of BCT in logistics and to develop industry-specific regulations (Aylak 2022). Therefore, the aim of this study is to identify the benefits and constraints of BCT implementation in the logistics industry.

Blockchain technology originated from its use with Bitcoin and has been rapidly innovating, transforming businesses by ensuring trust in transactions and data storage (Akram et al. 2020). Blockchain was designed by Satoshi Nakamoto in 2009 when he invented Bitcoin and cryptocurrency. It was designed to address transaction issues and bottleneck crises (AlShamsi, Al-Emran & Shaalan 2022).

Ar et al. (2020) emphasised the fact that BCT’s designation as a distributed ledger technology highlights its ability to enable information sharing and storage within databases, protecting this information from unauthorised modifications and corruption. Distributed ledger technology involves sharing and recording data across distributed storage units, or ledgers, which collectively manage data flow and distribute it across a network of nodes (Ar et al. 2020). Blockchain technology includes various components that support shared ledgers among users, such as businesses, software agents, and individuals, allowing participants to reach agreements without a regulatory framework (Al-Jaroodi & Mohammed 2019).

The operation of BCT allows transactions to be transmitted globally and remain immutable, ensuring consistency (Da Silva & Dos Santos 2022). Heutger and Kückelhaus (2018) found that BCT employs private and public keys to maintain privacy and confidentiality. As BCT is decentralised, transactions are distributed among all participants at various nodes, requiring any data manipulation to occur at all nodes (Santhi & Muthuswamy 2022). Pournader et al. (2020) explain that nodes function as active clients, each maintaining a copy of the blockchain and adding data to it. Furthermore, BCT records transactions secured by cryptography, eliminating the need for third-party verification. Each transaction is considered a block, with each block having a unique ID to ensure security. A transaction is initiated and then transmitted to a peer-to-peer network using algorithms (Chinnasamy et al. 2019). These transactions are verified cryptographically, forming a block that is added to the blockchain, rendering it unalterable and permanent.

Treiblmaier (2019), from a supply chain and logistics perspective, identifies key characteristics, including immutability, which ensures that interactions between servers remain unchanged, a property particularly beneficial in financial databases (Akram et al. 2020; Chinnasamy et al. 2019; Irannezhad 2020). Smart contracts, stored within the blockchain, activate upon meeting certain conditions, enforcing mutually agreed-upon rules and reducing delivery times and costs (Irannezhad). Track and traceability, which timestamp information, enhance the ability to efficiently track transactions and verify the authenticity of transferred goods (da Silva & dos Santos 2022). Trust is bolstered by cryptography, which secures data from alteration and enhances stakeholder confidence in BCT (Tan et al. 2020; Treiblmaier 2019). Transparency is achieved as BCT transactions are decentralised, allowing users to access and view transactions (Ahmad et al. 2021; Berneis et al. 2021). Lastly, the consensus mechanism, a fundamental feature of BCT, enables participants to reach agreements on transactions through a process of voting or consensus among nodes (Santhi & Muthuswami 2022).

The logistics industry involves a broad spectrum of activities essential for the movement, storage, and flow of goods and materials from the point of origin to the final destination (Rustamovich 2024). It encompasses supply chain management, transportation, warehousing, inventory management, order fulfilment, and distribution (Kim & Jeong 2023). The industry is critical for the functioning of global trade and commerce, ensuring that raw materials reach manufacturers and finished products are delivered to consumers efficiently and effectively (Lan 2024).

As the 4IR ushers in an era of technological advancement, the logistics industry must transform to remain competitive and efficient (Negueroles et al. 2024). One of the key technologies driving this transformation is BCT. Blockchain technology can revolutionise the logistics sector by providing enhanced security, transparency, and traceability across the supply chain (Wang et al. 2022). With its decentralised ledger system, blockchain ensures that all transactions are recorded in a tamper-proof manner, reducing fraud and errors (Wang et al. 2022). This is particularly important in a complex and globalised supply chain where multiple parties are involved. By adopting blockchain, logistics companies can streamline operations, improve data accuracy, and enhance collaboration among stakeholders (Li, Lee & Gharehgozli 2024).

Park (2020) and Treiblmaier (2019) indicate that the logistics industry is well-positioned for BCT implementation, which is expected to enhance efficiency by 40% and competitiveness by 35% through increased visibility, dependability, and financial viability within the supply chain ecosystem. However, widespread implementation in the logistics industry requires a collective effort. The decentralised and digital nature of the logistics sector is evolving, with BCT making asset tracking 50% more transparent and 30% more efficient throughout the logistics flow (Vijay, Suriyalakshmi & Elayaraja 2021; Wang et al. 2022). Santhi and Muthuswamy (2022) emphasise that BCT addresses inefficiencies in logistics by managing transaction records, creating a transparent system, and tracking assets to provide essential documentation.

Nguyen et al. (2023) argue that modern logistics systems necessitate advanced data exchange, financial transaction technologies, and sophisticated hardware systems. Decentralised logistics systems offer financial transparency and robust supply chain networks, with BCT-based logistics using smart contracts to track payments from logistics providers for product delivery to warehouses, improving payment accuracy by 25% (Negueroles et al. 2024). These smart contracts, monitored via radio frequency identification (RFID) devices, enable enforceable agreements between logistics providers and merchants, with termination possible by mutual consent (Pournader et al. 2020). Wang et al. (2022) contrast smart contracts with traditional contracts, noting that BCT allows public review and validation of contract results. For instance, payments can be automated upon delivery confirmation, increasing efficiency by 20%, and real-time tracking with GPS can prompt refunds without recording the location on the blockchain, enhancing transparency by 15% (Negueroles et al. 2024; Nguyen et al. 2023; Santhi & Muthuswami 2022; Wang et al. 2022).

Following Paré et al. (2016), the review plan includes: (1) creating a review question, (2) choosing the review type and method, and (3) formulating a review protocol.

Review question: The main review question of this study is as follows: ‘What are the benefits of BCT and what are the constraints hindering the logistics industry from implementing it?’

Type and method of review: A theory-building or developmental type of review was used to create a typology of constraints hindering the logistics industry in the implementation of BCT.

Review protocol: A review protocol is a detailed outline of the processes for conducting the review, enhancing the trustworthiness of findings. It includes developing a research question, guiding the data used in the search strategy, and setting inclusion and exclusion criteria. After crafting a focused question and review aim, the next stage is designing the search strategy, which is crucial for locating, choosing, analysing, and utilising information. Creating search terms and keywords involves examining key research to determine common words in the literature and ensuring search terms are aligned with the study’s purpose. The review protocol also includes developing criteria for inclusion and exclusion, data extraction, and data analysis methods, ensuring consistency and minimising data ambiguity.

Initially, publications were searched, sorted, acquired, and read. New keywords and concepts emerged by means of thorough reading, ensuring the focused relevance of the existing literature. The preliminary search consolidated relevant academic articles to meet research objectives, targeting peer-reviewed journals such as Information Systems Research, the Journal of Management Information Systems, MIS Quarterly, and the Journal of the Association for Information Systems. Search terms used included titles, abstracts, and keywords: (‘Blockchain’ or ‘Logistics’) and (‘Constraints’ or ‘Benefits’ or ‘Logistics industry’ or ‘Logistics management’). Because of the evolving nature of the technology, the search focused on academic journal articles and conference papers from 2018 to 2024.

The SLR was conducted in databases like Science Direct, Research Gate, Scopus, Taylor & Francis, IEEE Xplore, and Google Scholar, focusing on relevant academic articles published between 2018 and 2024.

Inclusion and exclusion criteria set limits for the review, determining which research papers are relevant to the study (Stern, Jordan & McArthur 2014). These criteria help mitigate reviewer bias and ensure that studies are included based on substantiated principles rather than on personal interest. A balance between too-specific and too-broad criteria is essential to avoid excluding relevant studies or including irrelevant ones. Table 2 provides the inclusion criteria for this review.

The SLR included journal articles that pertained to or provided insights into: (1) blockchain technologies, (2) constraints in the implementation of blockchain technologies in the logistics industry, (3) the logistics processes influenced by the implementation of blockchain technologies, or (4) a combination of these aspects. For this article, the authors reviewed all article topics and abstracts; if abstracts were unavailable, the introduction was read. Articles not relevant to these four points were excluded from the review.

For critical evaluation, the Critical Appraisal Skills Programme (CASP) qualitative checklist was used to assess research rigour and potential methodological issues affecting the validity and quality of findings. The CASP appraisal tool addressed key aspects such as the validity of the research findings, the relevance of the study, and ethical considerations through the following set of 10 questions:

During data extraction, a clear framework was established within the review protocol to guide the extraction process. The authors utilised an extraction tool based on the main theme of the implementation of blockchain technologies in the logistics industry. This tool focuses on extracting information related to descriptions and characteristics of blockchain technologies, blockchain’s relationship with the logistics industry, types of blockchain technologies’ implementation constraints, and insights on enhancing blockchain implementation in the logistics industry. Articles meeting the inclusion criteria were carefully reviewed to ensure relevance to the study.

Data analysis requires becoming acquainted with the data (as outlined in steps 3 to 5), which involves categorising and summarising them before analysis. Thematic content analysis was employed in this study, aiming to identify patterns within and across texts. This method was suitable for the research as it facilitates the examination of content themes present in diverse data sources, including textbooks, journal articles, and other textual data.

Blockchain technology holds substantial promise for revolutionising traditional business processes and enhancing efficiency within the logistics industry. However, its implementation is hindered by various constraints across organisational, technological, and environmental domains. This SLR aims to analyse and discuss these constraints based on recent studies. In the study sample, seven different BCT implementation constraints in the logistics industry were identified from 30 articles, as shown in Table 3.

Blockchain technology holds immense promise for revolutionising logistics operations, offering a plethora of potential benefits that can transform traditional logistics processes. In this section of the SLR, we explore the six potential benefits of implementing BCT in logistics operations, drawing insights from a range of scholarly sources. A total of six potential benefits were identified from 31 articles. Table 4 presents potential benefits of BCT in logistics.