Blockchain-Enhanced Warehouse Management: Mitigating Product Abuse and Privacy Risks

The rapid expansion of e-commerce and global supply chains has increased the complexity of warehouse management, making product abuse, data tampering, and privacy risks critical challenges. Traditional Warehouse Management Systems (WMS) lack the necessary security, transparency, and accountability to prevent fraudulent activities such as inventory misplacement, shipment discrepancies, and unauthorized data modifications. In this study, we propose a blockchain-enhanced warehouse management framework that integrates IoT tracking, smart contracts, and AI-driven anomaly detection to mitigate these risks. The proposed solution ensures tamper-proof record keeping, automated reconciliation processes, and enhanced security mechanisms to prevent unauthorized modifications and fraudulent claims. Our implementation in a real-world warehouse setting demonstrates the feasibility of blockchain-based inventory tracking and privacy-preserving reconciliation, handling over 10 million transactions over five years. The results indicate that blockchain integration significantly improves data integrity, fraud detection, and operational transparency, reducing the likelihood of product abuse. This study highlights the potential of blockchain and AI-based security solutions in transforming warehouse operations into a more secure, efficient, and fraud-resistant ecosystem.