Optimized Logistics Network Management Operations Through Predictive Analytics and Blockchain-Enabled Smart Contracts: Techniques, Algorithms, and System Architecture
TL;DR
A five-layer architecture to improve logistics network management in terms of efficiency, minimize costs, and enable data-driven decision making capabilities is presented, which proposes real-time monitoring features that ensure continuous adjustment to changing conditions, thereby providing a reliable solution to contemporary logistics network challenges.
Abstract
The combination of predictive analytics and blockchain-technology-enabled smart contracts has the revolutionary potential to transform logistics network operations. This paper presents a five-layer architecture to improve logistics network management in terms of efficiency, minimize costs, and enable data-driven decision making capabilities. The proposed system includes collection of data, blockchain-enabled smart contracts, integration of the system, and real-time monitoring. With rigorous performance analysis, this paper presents phenomenal gains in predictive accuracy, transactional security, and system operational efficiency. It also proposes real-time monitoring features that ensure continuous adjustment to changing conditions, thereby providing a reliable solution to contemporary logistics network challenges. This work also bridges research gaps, showing practical applications and empirical evidence in favor of the integrated solution to establish its effectiveness. Experimental evaluation demonstrates strong predictive performance (R2 up to 0.96), successful blockchain-based transaction execution, and transportation cost reduction through optimized allocation. The transportation linear programming model reduced shipping costs from INR 1080 to INR 854 through optimal allocation across sources and destinations.