Blockchain as a technology is the future of modern logistics committing transparency. It can leave positive impacts on the logistics world. It promises security, productivity, and revolution in the method of good transportation worldwide. Introducing blockchain in logistics can create a new trend in the logistics world. This duo can increase productivity, safety, and clarity at the same time. Blockchain has started stepping into other industries as well after cryptocurrencies. This article discusses how blockchain can influence the world of logistics in Saudi Arabia and how this technology is ruling the international market.

What is Blockchain in Logistics?

Modern logistics crave blockchain as this technology can improve and simplify supply chain procedures. This technology works as an account book that is crystal clear and segregated to keep records safely. Blockchain makes the supply chain procedure smooth, conformed, and trackable. In the world of logistics, smart contracts minimize delays and conflicts. Blockchain promises to improve supply chains and reduce fraud activities. Adopting this technology in modern logistics will increase answerability. Moreover, it will positively impact stakeholders and the global trade market.

How Does Blockchain in Modern Logistics Influence Saudi Arabia’s Economy?

Saudi Arabia is already living in the future. The country has gained tremendous economic benefits by promoting blockchain in logistics, as this technology is helping to provide visibility and security to the country’s economic growth. Also, this method has decreased the chances of fraud. Blockchain makes the trade process even more straightforward and trackable. Moreover, intelligent contracts reduce delays and increase the pace of modern logistics procedures. The international company called Maersk is a great example. This company introduced blockchain in their logistics and received a massive financial profit. This kind of advancement in the country can lead to its economic growth in the sky.

How will blockchain improve the supply chain in Saudi Arabia?

Adopting blockchain technology is beneficial for Saudi Arabia. Blockchain will provide their supply visibility, security, and productivity. Also, it minimises the chances of fraudulent activities and human errors. Blockchain technology is ideal for the country that plays in the oil and petrochemicals market as it will maximise their accountability of goods at every step. Moreover, it alleviates the chances of fake imitation of goods.

Africa and the Middle East region have maximised their spending on blockchain. A report by Statista states that it has increased to almost $300 million in 2024. This decision will lead Saudia to the seventh sky. It will simplify the supply chain management. Blockchain also fits in Saudia’s 2030 vision. A vision promotes expansion and the economy and innovation to grow the country’s economy.

Blockchain Technology in the Supply Chain and Logistics

Blockchain is a platform for tracking and organising logistics and supply chain transactions. This technology promises to keep the records unchangeable. Stakeholders get a clear record of good transportation, a plus point of this technology. These features force individuals to build trust in this technology. In the coming future, the adoption of this technology will be very conformed. Many international companies have included blockchain in their supply chain operation. This will help them manage and simplify international trade procedures. There are many uses of this technology in supply chain and logistics. Some of them are mentioned below.

Computerization with Smart Contracts: 

These contracts are written in codes that robotize the supply chain processes. The contracts are designed to respond when they get the presumed signals. It decreases the work of humans and other operations.

Minimise the Total Spending: 

By implementing machine work in the supply chain, risks such as fraud also decrease. It reduces human work and decreases the mistake ratio. Also, blockchain technology is very good at managing resources fully.


It is clear that blockchain has built trust among stakeholders. This also leads to big collaborations for the exchange of information. It will also lead to a strong positive connection between supply chain groups. 

Quality Promise: 

It is useful for tracking or conforming to quality. It is pivotal for the food or pharmaceutical industries, as quality insurance is also a must.

Minimise Frauds: 

This technology fights with the frauds. The technology commits not to change the recorded data. This commitment reduces the chances of any wrong activity in the supply chain. 

Visible and Trackable: 

It is a technology that is able to track any goods in the supply chain. The technology keeps an eye on and records every transaction and step, making it visible. Also, the technology cannot alter any record, making it authentic.

Maximise Productivity and Accountability: 

Blockchain offers a smooth account book that gives access to all parties. However, the regular supply chain causes delays and problems due to more parties. However, blockchain increases productivity and authenticity while recording data.

Challenges and Limitations of Blockchain in Supply Chain Management

Besides the fact that blockchain has a lot of benefits, there are also some disadvantages and limitations. These limitations are stopping the spread of this technology worldwide.

Unification of Blockchain with the Supply Chain: 

Combining this technology with the pre-existing supply chain is challenging. Many companies need to be made aware of the use of blockchain technology. Also, they need help understanding a new system that is different from the traditional one.

Flexibility Problems: 

This technology network is facing flexibility problems. Whenever the transaction increases due to flexibility issues, the transaction becomes slower. This issue compromises productivity, which is the primary goal of adopting this technology.


There has yet to be a unified system. Some organisations have implemented this technology, while others have not. This makes creating a single method for the total supply chain challenging.

Privacy Issues:

It was mentioned above that blockchains promise security. However, it also provides access to all the participants. This leads to a privacy issue and makes the data visible to everyone. It is needed to make a difference between visibility and privacy. Both are required to be secure at a time.

Spending on Implementation: 

Blockchain technology requires a lot of investment to be implemented anywhere. There is a huge amount of money that will be needed to train the staff as well. This issue also limits the adoption of blockchain technology, specifically for smaller businesses. 

Benefits of Blockchain in Logistics

There are multiple benefits to blockchain technology for logistics. Some of the benefits are mentioned in the below paragraph.

Maximise Visibility: 

The technology allows all the stakeholders in logistics to gain access. The access provides them with all the information immediately. This visibility reduces the chances of mistakes. Also, it avoids delays and builds trust among stakeholders.


Blockchain technology provides tracking features for products in the supply chain. The technology records every movement of the products and transactions. This kind of feature is specifically needed for the pharmaceutical and food industries. As there, quality matters the most.

Smart Contracts: 

The enforcement of agreements is done through smart contracts. It helps to make the transactions quick and smooth. Also, it minimises paperwork and delays, which leads to a reduction in procedural costs as well.

Quick Transactions: 

It also fights against centralised authorities and bureaucracy. It makes the transaction process smooth and fast, pivotal in the logistics industry. In logistics, productivity and speed are must to benefit the supply chain.

Provide Security: 

Blockchain provides a high amount of security. Moreover, as the data is unchangeable here, it denies giving invalid and unknown access.

Decreases the Total Cost: 

The technology has finished the paper and human work, reducing the cost. Furthermore, it contributes to the productivity and quality of the industry.

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To sum up, it is beyond doubt that blockchain is the future. A future technology that promises a transformation in the supply chain. However, it is also pertinent to counter the challenges to make it a successful technology in the future. It is a must to make efforts for solutions and the normalisation of blockchain. The main crux of blockchain technology in logistics is to provide visibility, efficiency, traceability, and security in the supply chain network.

Frequently Asked Questions

How does blockchain impact logistics?

The technology helps simplify the transaction and tracking procedures. It increases efficiency and visibility among stakeholders. It also reduces paperwork and minimises the chances of fraud and mistakes.

What is the current impact of blockchain?

The current impact of blockchain is highly significant, especially on the global economy. It has no doubt made the work more simple.

How has technology impacted logistics?

The logistics sector has gained a lot of benefits from blockchain technology. It has made logistics very easy, transparent, trackable, and quick. 

What is the application of blockchain technology in supply chain logistics?

The blockchain application in supply chain logistics is unbelievable. Due to this technology, businesses can easily track and check the entire supply chain process securely. This kind of visibility helps identify the risks.