Blockchain applications in humanitarian logistics

Abstract

Disaster relief is a key aspect of humanism and humanitarian actions. The delivery of adequate supplies at the right time and right place is critical for survival and recovery of the affected people, animals, plants and other entities. Since every dollar counts towards saving a life, the traceability of the shipments must be ensured, and the organisations involved in the process need to be aware of the delivered items to avoid duplication of relief efforts. Responsive, efficient and transparent supply chains have been difficult to build and execute as many disasters occur in underdeveloped or developing countries with poor infrastructure, corruption and other challenges. This paper explores the application of blockchain technologies to create a database ledger that can assure traceability and reliability and also avoid duplication. The use of ‘smart contracts’, which can be automatically executed in a blockchain, to promote transparency in contracts and performance and the movement of money across all parties is also studied. Large organisations such as the United Nations (UN) or the World Health Organization (WHO), which often take the lead in organising the relief efforts, can initiate the development of blockchains for humanitarian logistics and draw manufacturers, transportation carriers, other logistics providers, banks and other partners into the blockchain network. Assuring both the aid donors and the recipients that the funds have been used wisely and transparently will expand future aid contributions and enable more effective relief to disaster areas. This is especially critical now as climate changes on our planet are expected to result in more disasters with extremely dire consequences, especially in poorer regions of the world.