Enhancing Logistics Operations Using Blockchain Based Smart Contracts in ERP Systems
DOI:
https://doi.org/10.47941/ijce.2926Keywords:
Smart Contracts, Blockchain Technology, Enterprise Resource Planning (ERP), Supply Chain Management, Logistics Digitization, Blockchain-Enabled ERPAbstract
Purpose: The article aims to explore how blockchain-based smart contracts, when integrated into Enterprise Resource Planning (ERP) systems, can enhance efficiency, transparency, and security of logistics operations. It seeks to address the limitations of traditional ERP platforms and proposes a new model leveraging blockchain technology to overcome these issues.
Methodology: The research adopts a comprehensive literature review and secondary data analysis approach. This involves: Synthesizing existing academic and industry knowledge, identifying key technological trends, evaluating challenges and benefits of implementing smart contracts within ERP systems.
Findings: The integration of blockchain smart contracts with ERP systems can: Streamline key logistics processes such as procurement, shipment tracking, customs clearance, and proof of delivery. Enable automated payment settlements, real-time compliance validation, and fraud prevention in complex supply chains. Enhance real-time visibility, trust in multi-party transactions, and process integrity. Pose challenges related to technological architecture, interoperability, and implementation in platforms like SAP S/4HANA and Oracle ERP Cloud.
Unique Contribution to Theory, Policy and Practice: Offers a synthesized view of how two advanced technologies can be integrated to evolve traditional supply chain theories around trust, decentralization, and process automation. The study provides insight into the regulatory and data governance implications of blockchain in enterprise systems. Highlights the need for updated compliance frameworks that accommodate smart contracts in logistics. It also presents actionable insights and use cases from industry case studies and pilot projects. Offers a roadmap for implementation, helping logistics enterprises understand how to practically adopt and scale blockchain-enabled ERP solutions. Discusses workforce transformation needed to support such digital initiatives.
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References
: D.John Mangan, Chandra Lalwani, "Global Logistcis and Supply Chain Management" (Page no.9) - March 2016.
: Qingping Li, Guoqiang Wu, "ERP System in the Logistics Information Management System of Supply Chain Enterprises" - October 2021.
: FinaryLabs, "Understanding the Difference Between Blockchain and Smart Contracts" - July 2023.
: Eastgate Software, "Enhancing Supply Chain Transparency with Blockchain-Enabled ERP Systems" - September 2024.
: CA Jagdish Lade, "Integrating Smart Contracts in Blockchain-Based Triple Entry Accounting Systems with Traditional ERP" – April 2023.
: Tayyab Javed, “Blockchain-Based Smart Contracts for Logistics Operations” – August 2024.
: Emmanuel Ok, Barnabas Barnty, Oloyede Joseph, “Blockchain for Supply Chain Transparency and Logistics Optimization” – February 2025.
: Arjun Reddy Kunduru, “Blockchain Technology for ERP Systems: A review” – July 2023.
: KALP Studio, "Smart Contract Development: Key Challenges and Solutions for Enterprise Adoption" - November 2024.
: Kristen, “Smart Contract Use Cases in Transport / Logistics” – November 2019.
: Benjamin Gordo, “The Role of Smart Contracts in Streamlining Logistics Operations” – December 2023.
: Knowledge Center, “Blockchain in Logistics: Definition, Role in Logistics, and Benefits” – June 2024.
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Copyright (c) 2025 Anand Kumar Percherla
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
