The logistics and supply chain management industries are extremely complex. This is due to the massive amount of coordination and communication required throughout every step of the logistics process. In today’s world, some supply chains can have hundreds of steps and span across the entire globe, which means there is a growing need to increase efficiencies and transparency. One emerging technology that might transform the industry for the better is the application of blockchains.
Blockchain technology has already been applied to many industries, including finance, retail, medical, and more. Now logistics and supply chain industry professionals are exploring how this technology can be leveraged to streamline complex supply chains.
Our team of industry experts, who always keeps a pulse on new technology, is here to provide a quick overview of blockchain and how the integration of this technology could simplify supply chains to ultimately save people time and money.
What is blockchain?
In short, blockchain is a database that can record transactions between properties in a secure and permanent way. When shared with multiple parties, blockchain removes the need to verify, record, and coordinate transactions.
The inaccuracies in freight data alone in our industry is startling. Current estimates record that 10% of all freight invoices contain inaccurate data, which can lead not only to disputes but to costly process inefficiencies.
In automating processes through blockchain, like digitized documents, shippers are covered, thanks to the secure and permanent nature of blockchain. If you are interested in a blockchain based contract system, ShipChain is a logistics-based application that assists in even the minute details of shipment processes, including a driver confirming a successful delivery.
90% of the world’s trade is carried out by international shipping each year. The logistics behind global trade and delivery is very complex and involves many parties, not just the shipper and the producer.
By adopting blockchain technology, the complexity of procurement, transportation management, track and trace, customs brokerage, and financing is simplified in a recording process that eliminates the need for all parties to be present. Communication between all parties involved is simplified, which ultimately creates a more efficient industry.
Transparency and Traceability
Because of how well blockchain records transactions, data is stored and managed safely. The security that comes with using blockchain will allow the industry to become more transparent while also enabling every item to be traced with ease.
Interested in learning more on how emerging technologies are transforming the logistics industry? We shared insight on the value of AI in the industry in a recent blog. Our knowledgeable team would be happy to provide more information. Reach out to a team member today.