The endless applications of blockchain technology are slowly but surely being realized. One industry that could certainly use the efficiency of the Blockchain is the supply chain and logistics sector.
Blockchain startups like VeChain and Waltonchain are trailblazers in this logistics initiative. This has left existing companies scrambling to catch the wave. The majority of these companies currently use old and stagnant systems that need overhauling for cost, safety and simplicity reasons.
Established Industries Influx
There are a number of solid companies that have shown interest in blockchain based supply chain processes in the future. These include marquee names like General Electric, De Beers and Samsung that have blockchain projects in development.
Blockchain is rapidly disrupting the logistics space. This will affect all kinds of industries ranging from food businesses to even electronics. It is fair to predict that adoption may be what makes certain companies relevant in the future or go bust. Let’s look at a few examples;
Where Blockchain Technology Can be Applied In Logistics
GE transportation indicated intentions in March this year to join the blockchain in Transport Alliance. GE supplies services in rail and mining.
Blockchain can help combat the scourge of fake drugs in this industry. This is because the technology can be used to track assets in the delivery chain. As a result, this industry can save an estimated $30 billion annually lost to counterfeits.
Incidences of food contamination bring the food industry into disrepute when they happen. Blockchain can be utilized to effectively follow the supply chain.
This way the industry can identify the source of contamination, when it happens and take action. Therefore, this entire industry is improved as suppliers up their game since they can always be outed.
Diamonds And Precious Stone Industry
The sourcing of minerals is a big issue in the modern world. Diamonds giant De Beers announced in May that it had used Blockchain successfully to track minerals from mines to retail.
In the contemporary human rights discourse, the use of child labor and other illegalities in the mineral supply chain is controversial. Creative corporations like De Beers use this technology to assure investors and customers of the integrity of their minerals.
Like the rest before, giants like Samsung can use blockchain to track global shipments. This is because Samsung claims that adoption of blockchain could save upto 20% of all shipping cost. Moreover, the efficiency of the system will drastically reduce shipping times for launched products.
Benefits Of Blockchain logistics
A Reduced Amount Of Paperwork
At the moment, even the high degree of automation of worldwide transportation has still left a great deal of paperwork for logistics officials globally. Be they suppliers, brokers or shippers, they have to fill in and sign some amount of paperwork in their operation.
How does blockchain mitigate this? The technology crystallizes operations to a single system on which all manner of tracking is possible. Organizations like AB InBev, Accenture, Kuehne & Nagel tested blockchain efficacy on their ocean shipping systems. The group concluded that blockchain systems reduce the amount of printed paperwork by up to 80%.
Helps In Monitoring Supplier Performance History
This is pretty simple. A company can use the history of supplier delivery assessed from the blockchain to determine future engagements. This system is transparent and keeps delivery and service levels high at all times.
Monitor Freight Capacity In Real-Time
The transportation sector is fast and cumbersome. Using Blockchain technology, a company has the convenience of a single and simple tracking mechanism. This way, the company has a real time functionality to keep track of all kinds of freight. Other advantages such as fraud and theft detection stem from this.
What Are The Potential Drawbacks?
Industry Marketing Tactics
There is concern that certain companies only claim to be blockchain believers to seem tech-friendly and relevant. This could be a successful gimmick only to boost share price and similar axillary reasons.
The Blockchain revolution has to gain actual ground. For it to go from promise to reality, established companies have to not only praise it but adopt it as well.
This may stem from the wrongful assumption that blockchain and Bitcoin are one and the same. Additionally, the radio frequency ID (RFID), that this operation is contingent upon, raises issues of privacy and human weakness in tagging.
The tagging of products may be excellent for companies but not so much for consumers. This is particularly if the tags remain intact even after retail. Such issues will definitely come to the fore.
It goes without saying that this is a concern in its own right. How do we know that the intentions of blockchain are always noble minded? The power of blockchain developers will be under increased security as this technology is adopted wider.
Best Blockchain Technology Logistics Conclusion
In conclusion, the Blockchain technology is here to cause disruption. My guess is that sooner rather than later all logistics companies will rely on the network for efficient logistic management. Therefore, it is not a matter of if but when. The issues mentioned may slow growth but with every problem there is or there are solutions to be found or invented. It will be fascinating to track the development of blockchain logistics.