What is Blockchain? Have you heard this term before?
Here is the simplest explanation for the word “Blockchain”. It is a digital technology used to record transactions in the form of blocks. It stores data which has caused huge excitement in the transportation sector.
The amazing technology promises to provide a trusted, shared ledger that enables 3rd parties with distributed business processes to operate flawlessly together in a completely transparent environment. It delivers trusted and efficient results in financial and legal transactions.
What is Blockchain tracking?
From recording payments and audits to tracking inventory as well as assets, blockchain technology will offer better supply chain efficiency than ever before.
Blockchain has become a smarter solution to improve supply chain and logistics operations of businesses, opening up new ways of tracking the movement of materials which are transported globally.
Some corporate giants are already using the technology, and according to experts, blockchain could become a global “supply chain operating system”. It delivers efficiency when it comes to tracking purchase orders, receipts, change orders, shipment notifications, or other business-related documents.
Blockchain technology helps the financial institutions to record client transactions in real time, reduce data corruption, and ensures past tracking of transactions through sequential timestamps. But, the application of blockchain technology goes far beyond finance and money. When it comes to intellectual assets, blockchain can be applied to track proprietorship and rights to all sorts of digital content, incorporating books, logos, and even books. For businesses that deal with physical assets, blockchain can boost auditability and transparency of any supply chain.
See how the blockchain technology could improve the efficiency in following tasks:
- Verifying or assigning the certifications or some specific properties of physical products, for instance, checking, if a food item is an organic or fair trade.
- Keeping the records of the quantity and moving of assets such as trailers, pallets containers etc. as they move amid supply chain nodes.
- Blockchain helps in linking the physical goods to barcodes, serial numbers, digital tags such as RFID etc.
- Sharing info related to the manufacturing process, the collection of stock, delivery and maintenance of the products with vendors and supplier.
How Blockchain is a game changer for Logistics company?
Transport Intelligence global survey revealed that 56% of supply chain managers believed that the Blockchain technology is “a game changer.” By this time, most of the supply chain officials are accustomed with the blockchain as transport industry-transforming technology movement and admit its importance.
Numerous businesses in the logistics industry are engaged in transporting raw materials, goods or final products to retailers and customers and all the transactions are done depending on different documents to ensure the reliability of the transactions. According to Ti (Transport Intelligence, in today’s industry, 10% of all goods invoices contain wrong data including repetition, wrong cargo mode charges, and incorrect payment. This causes disputes and many other process inefficiencies in the transport sector. Blockchain technology enables more automated and error-free processes that help the companies to achieve cost savings.
An OriginTrail team member said in an interview that systems, where all companies can keep proprietorship of their data and understand what their data will be used for, will offer real value to the logistics and the supply chain.” In tough supply chains, parties may be unwilling to share the data because of the fear of losing their competitive benefit. Zero-knowledge systems enable for new ways of reliable and encrypted data sharing that helps in data validation from 3rd parties without disclosing specific information.
Blockchain applications hold promises to deliver improved visibility, renew feasibility, improved payment processing accuracy, reduced inconsistency and also eliminates compliance problems. This shows that blockchain technology is a game changer for the logistics industry.
The blockchain is beneficial for logistics companies & manufacturers. See how-
- It tracks the performance history!
Tracking the performance history of transporters, carriers and other suppliers using a blockchain framework enable the businesses to see the evidence of history performance involving on-time pickups, deliveries and more.
- Better quality assurance!
Every approved member which is involved in the transaction can access critical data to authenticate its marks. Evaluating freight at pick-up and delivery locations reduce uncorroborated disputes.
- Maintains the records of high-value assets!
Having an accurate and reliable record of asset history is critical to ensure it obeys the safety standards from manufacturing floors to delivery doors.
- Tracks real-time cargo capacity!
In trucking and transportation, the available capacity can alter by the hour. With the help of transparency, blockchain offers, you can see when and where capacity opens up.
- Improves Acquiescence!
ELDs (Electronic Logging Devices) and blockchain are a natural combination. ELDs can send the information regarding driver behavior and route details to a blockchain in real-time. Collaborating this information with weather data and traffic data providers shippers and carriers an amazing tool to enhance routing. This also saves delivery time.
- Enhances payments and pricing processes!
Using Blockchain the payment processing and settlement are done in a secured manner. The transaction information can be accessed easily with the help of blockchain. Additionally, the transporters will have more data and information to determine the prices.
- Avoids theft or robbery!
A blockchain network contains detailed information of drivers with photo IDs and rules for the delivery and pick-up of cargo. This added information will improve safety and minimize the chances of freight theft. A blockchain also allows the secure transference of titles which are known as smart properties.
- Detects Fraud!
Using blockchain, each and every transaction is noticeable to everyone on the network. If something is removed or added can be detected easily. This transparency reduces the possibility of frauds such as double brokering. With the common practice of nonrepudiation and notarization, transporters can securely track the time of a document or transaction. They can see the date of creation and modification which ensures authenticity.
- Verifies provenance!
Provenance confirms that every transported good or product involves a digital “passport” that shows its authenticity. Essential information like when and where was the product fabricated will be contained in these so-called passports.
- Enables you to issue Smart Contracts!
Smart contracts are money and time savers. Majority of businesses considers the ability to issue smart contracts as the Holy Grail of blockchain technology. Corporate giant says, “Using smart agreements, contracts can be validated, signed automatically and imposed through a blockchain concept which eradicates the requirement for mediators and therefore, saves the company’s money as well as time.”
Rachelle, the author of this post is an experienced writer and analyst. He is working in the transport and logistics industry for many years and therefore familiar with the latest trends and technologies used in this sector. Writing is his passion and he writes informative blogs after the complete research and analysis.