BLOCKCHAIN IN SMALL-SCALE LOGISTICS: OPERATIONAL AND STRATEGIC BENEFITS, AND IMPLEMENTATION CHALLENGES FOR MSMEs

Abstract

The integration of blockchain technology into micro and small logistics enterprises (MSLEs) presents an opportunity for enhanced transparency, traceability, and operational efficiency. Traditionally perceived as suitable only for large-scale systems, blockchain is increasingly becoming feasible for resource-constrained environments. This paper examines technical, economic, and organizational aspects of blockchain implementation within MSLEs, supported by literature analysis, real-world case studies (TradeLens, TE-FOOD, Modum, Slync.io), and simulated applications for two model enterprises — PickupPoint and LastMileCo. The research highlights the value of blockchain in automating delivery confirmation, securing digital invoicing, and improving data consistency across transport and warehouse systems. The study also identifies practical challenges, including cost barriers, integration complexity, regulatory uncertainties, and the need for technical upskilling. These are addressed through stepwise implementation strategies and modular adoption approaches. Findings indicate that even minimal-scale blockchain deployment can lead to measurable gains, with return on investment estimated at 6–18 months. The paper concludes with recommendations for industry adoption and policy development, advocating for regulatory sandbox environments and incentives tailored to the logistics SME context. Blockchain should be seen not merely as a technical tool, but as a strategic enabler of resilient and digitally mature supply chain operations.