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Research News

Revolutionizing Last-Mile Delivery with Blockchain

June 14, 2024

New framework demonstrates significant improvements in last-mile delivery, pairing modern UAVs with traditional vehicles and leveraging blockchain technology

 

 

Last-mile delivery is the final step in the delivery process from a distribution center to the recipient. It is also often the most complex and expensive part of the supply chain. Last-mile delivery involves navigating local roads, dealing with traffic, and meeting customer expectations for rapid delivery, and as e-commerce continues to boom, the demand for efficient and cost-effective last-mile solutions has never been higher.

 

A team of researchers at Khalifa University has introduced a new framework that could significantly transform last-mile delivery. Their approach leverages both unmanned aerial vehicles (UAVs) and crowdsourced vehicles, coordinated through a blockchain-hosted matching mechanism. Prof. Hadi Otrok, Dr. Maha Kadadha, Dr. Rabeb Mizouni, Dr. Shakti Singh, and Dr. Azzam Mourad published their results in, a top 1% journal.

 

“The supply chain industry bloomed in recent years to reach $21 billion in 2022,” Prof. Otrok says. “Last-mile delivery has become hugely important as consumers expect their products to be delivered to their location. While dedicated distributors can and do perform last-mile delivery, the crowd-sourcing paradigm can be adopted for the delivery of products by crowd-sourced vehicles in a timely and cost-efficient manner.”

 

The team’s innovative system promises to optimize delivery processes, enhance transparency, and reduce costs as their framework integrates UAVs with traditional vehicular transport, all supported by the blockchain. While drones can quickly bypass road traffic and deliver goods in urban settings, ground vehicles are capable of handling heavier loads and navigating areas less accessible to UAVs.

 

“UAVs can offer fast delivery even during peak traffic hours,” Prof. Otrok says. By employing both modes of transport, the framework aims to take advantage of the strengths of each method, adapting to varying delivery needs and conditions.

 

The blockchain-based platform is at the core of the system and serves several critical functions. It hosts a matching algorithm which efficiently allocates delivery tasks to the most suitable drones or vehicles. This allocation considers factors like delivery urgency, vehicle availability, and geographical efficiency. The blockchain also provides a transparent and immutable record of all transactions and interactions. This not only ensures data integrity and security but also builds trust among users and providers with a clear, unalterable history of deliveries.

 

The smart contracts hosted on the blockchain automate the logistics, with supply chain management contracts handling interactions and data among supply chain members, and last-mile delivery contracts managing the actual delivery tasks, assigning vehicles, tracking progress, and facilitating automatic payments.

 

The results from the team’s initial testing are promising. Comparisons with traditional delivery methods show that this blockchain-integrated approach can reduce delivery times by 23 percent, increase task allocation efficiency by 6 percent and enhance payment for delivery agents by 50 percent. These improvements represent both significant logistical benefits and potential cost reductions for businesses and their consumers.

 

Integrating UAVs and vehicles in a blockchain-based framework could speed up deliveries, reduce traffic congestion and lower the environmental impact of transport. The team’s next steps include refining the technology, expanding its capabilities, and eventually implementing it in real-world scenarios. 

 

Jade Sterling
Science Writer
14 June 2024