Decentralized procurement mechanisms for efficient logistics services mapping - a design science research approach

Companies tend to outsource logistics services for flexibility or platform operating costs reduction. To do so, they typically use centralized platforms to delegate the services procurement process. However, those platforms can be prone to information asymmetries between carriers and shippers which can lead to sub-optimal procurement outcomes. A more transparent and efficient way to manage the procurement of logistics services between carriers and shippers could be a decentralized platform based on blockchain and smart contracts. In this paper, we design, implement, and evaluate the potential for a decentralized logistics services procurement system, following a design science research approach. In so doing, we contribute by (1) developing such a decentralized logistics services procurement system that addresses the allocation problem, and (2) developing a set of nascent design principles guiding the elaboration of decentralized procurement mechanisms on blockchain.