Companies like FedEx, UPS, and DHL deliver millions of parcels worldwide. Websites offer trading features like artificial intelligence, trading bots, market analysis, live customers and much more for bitcoin traders. However, these logistics companies are now having to deal with new technologies that might be able to improve their business operations. You may click Bitcoin for more information.
One of these technologies is blockchain technology which could benefit the shipment and logistic industry by eliminating specific barriers such as counterfeiting, fraud, and security risks. The below-mentioned portion introduces the possible ways it can benefit the shipment and logistic industry, as well as some recent developments that have come into play in this space.
Blockchain could profoundly reshape global supply chain management by bringing interoperability among carriers and shippers, across different jurisdictions, along with new levels of safety to transport materials from one point to another. The technology could also contribute to the interoperability of shipping containers, which are tracked using a system of tags, such as RFID and QR codes. Large companies such as Maersk and IBM are now exploring these use cases.
According to a white paper by IBM, the company utilizes distributed ledger technology to digitize, track and verify shipping containers across an entire supply chain network. The report states that this could increase the security of the container transport system while reducing overall costs. The solution builds off existing technologies and networks in the shipping industry today. A blockchain-based solution can inform how people handle a shipment’s journey across borders. Let’s discuss every potential use case of blockchain technology in the shipment and logistics industry.
Faster and Leaner Logistics in Global Trade:
The shipment and logistics industry has been an industry that has faced a lot of challenges, such as delays and cost overruns. As a result, companies are now looking at blockchain technologies to improve their efficiency in supply chain management. In the ICS Logistics report, 35% of the surveyed companies stated that they have already implemented digital technology in their processes, such as tracking logistics drivers’ location, real-time shipment tracking, control of authorized personnel access, and optimized processing times for orders. These real-time solutions are likely to be further improved by blockchain technologies which could reduce the overall costs of transport and delivery services by avoiding penalties for mistakes or improvements to security procedures.
Quality Control for Products:
The shipment and logistics industry is a significant contributor to the global economy, with annual revenues estimated to be over $3.3 trillion. The global market is also projected to grow at an incredible pace of 15% a year up until 2022.
The vast potential has attracted many players with access to a significant amount of capital, including major companies such as IBM, exploring possible use cases for blockchain technologies in this industry. For example, as per a report by IB Times, IBM has embarked on an experiment with shipping containers where it plans to use blockchain technology to track the containers during their journey from port to port.
Smart contracts could lead to better shipping times and reduced incidents across the supply chain network. According to a report by PwC, blockchain can increase transparency and efficiency in the supply chain business by eliminating points of failure. The world’s supply chain is immense and complex, and the movement of goods occurs under various conditions. As a result, it will increase the risk of fraudulent activities such as product counterfeiting and smuggling.
The introduction of blockchain technologies could bring transparency to these processes, which could affect their operations in Europe, Asia, and Africa. A large percentage of the trade in these regions crosses over multiple jurisdictions, which opens up doors to potential threats such as smuggling that can be eliminated using blockchain technology. Blockchain technology has a wide range of benefits for shippers in terms of usability and security, and transparency issues.
Paperless Documentation:
Blockchain technology could allow companies to altogether ditch paper-based documents for electronic transactions. A report recently released by IPTS suggests that the available storage space of the blockchain is such that it could support over 1 million documents per second.
It would make it possible to store documents on the blockchain network, allowing faster and more efficient access to these documents when required. The report states that supply chain management is one of the areas where companies could implement blockchain technology without affecting operations or existing processes. Paperwork in shipment and logistics can be very time consuming and tedious, especially when multiple parties are involved in a transaction or business relationship.
Closure:
The highly secure nature of blockchain technology makes it ideal for use in the shipping and logistics industry. In addition, users could also use blockchain technology to automate the document verification process, storage, and management in this space. It would significantly reduce the high costs associated with searches and storage, given that documentation is usually stored in several places.
The overall benefits can lead to savings in operating costs by reducing the time lag between order processing and delivery and eliminating points of failure across various processes. In addition, it leads to enhanced customer satisfaction from higher quality standards, faster delivery times, reduced shipment incidents, and greater efficiency.
