The Adani Ports and Special Economic Zone Limited (APSEZ), which is India’s largest port operator, has closed a partnership with blockchain-based platform TradeLens that offers supply chain solutions.
APSEZ aims to integrate these blockchain solutions from TradeLens across some 10 courier management facilities from 6 ports across India’s states: 4 in Gujarat and the others in Odisha, Goa, Tamil Nadu. Andhra Pradesh, Kerala and Chennai.
The Present Supply Chain Has Shortcomings That the Pandemic Exposed
Business Line, an Indian business news outlet, says APSEZ digitalizing its supply chains represents the agency’s efforts of dealing with the current supply chain system’s vulnerabilities.
It looks like the Coronavirus pandemic brought to light all the drawbacks of how the present supply chain works, which is only by manual processes and filing a lot of paperwork. Here’s what a logistic industry official had to say about this:
“During the pandemic, we realized the price of not digitizing the industry. There will be a mindset change now and more firms will adopt the technology.”
TradeLens to Bring Transparency and Reduced Costs
The TradeLens platform is developed by IBM and Maersk, also expected in this situation to help APSEZ with the sharing of information in a more secure, transparent and cost-efficient manner.
QBIS Consulting conducted a study on Total Transport and Logistics Costs (TTLC) and estimated that the digitalization of the supply chain can save $220 million a year for importers from only 1 major port. The savings for exporters would be around $40 million a year, whereas the nationwide savings could reach up to $860 million.
TradeLens Has a Worldwide Presence
When it comes to the digitization of supply chains, TradeLens has made significant progress with many industry players from all over the world. In December of last year, they announced a partnership with Cái Mép International Terminal, a major shipping terminal in Asia.
In the following month, they began collaborating with Port Salalah, the largest port in Oman, to digitize their supply chain as well. In March 2020, Standard Chartered also joined the TradeLens platform, being the first bank to do so.