Blockchain adoption, in my opinion, is still 50/50. I think it will either eventually be fully accepted or forgotten in the annals of tech history. Nonetheless, it is highly important for a business owner to know the possibilities Blockchain in logistics technology offers in trucking businesses and generally other logistics businesses.
Blockchain in logistics technology can protect you from cyber-attacks, pay unnecessary hidden charges, speed up payments, ensure transparency, eliminate middlemen, increase efficiency, and more.
The use of Blockchain in logistics technology involves creating a decentralized public record that tracks all changes in real-time. Hence, using Blockchain in the logistics industry can help companies optimize their delivery routes, eliminate unnecessary steps, reduce errors, and save time. By improving transparency and reducing risks, the Blockchain can help increase trust in the logistics industry. Additionally, Blockchain eliminates the need for intermediaries like banks, which can streamline processes and reduce costs.
People think that blockchain technology is only relevant to cryptocurrencies. But that is not the case; Blockchain has numerous applications in different industries, and logistics is no exception.
Some of the most important advantages of using Blockchain in logistics are:
There are numerous ways in which blockchain technology can be used to improve the logistics industry. However, currently, not too many companies have adopted the use of Blockchain for logistics. So, the use cases are fewer than the capabilities of the technology. We have compiled a list of important use cases in current times:
A supply chain often includes many different handlers, each playing a role in the delivery process. Sometimes, it's relatable parts that need to be assembled at a final location. Blockchain in logistics helps you track where each item has been along the way. If there are any disruptions in the supply chain, they are easier and faster to detect.
One example is Maersk; the company uses Blockchain in logistics technology to manage cargo across international borders. The company aims to save millions of dollars worth of man-hours for companies transporting cargo. They hope to reduce errors, detect fraud and improve the time of delivery.
International payments are simplified thanks to the help of the Blockchain in logistics while also promising transparency and security. Even Visa has launched it's B2B connect payment gateway based on blockchain technology and smart contracts. This helps manage payments and billings.
Blockchain in logistics helps you establish key indicators of authenticity, one of which is assigning a unique code that is available on a public ledger. This code allows you to verify if what you have is, in fact, the original item, not a copy or a fake.
While a QR code can be manipulated, this can not. This is especially useful for consumers looking to buy luxury items like diamonds or gold. Blockchain helps reduce the anxiety among the parties involved without needing third-party security.
When conducting business with new companies or offshore companies, you always run the risk of payment defaults. But a smart contract eliminates that risk by putting the money in escrow; the funds are transferred when the agreed-upon conditions are met.
A smart contract is code based and does not require external interference to be executed. Hence, it can pay salaries, bills, and other expenses.
This multinational retail company has been using blockchain technology to better its supply chain track provenance and transparency. Recently, Walmart asked its spinach and lettuce suppliers to use a database through blockchain technology. Because of this implementation, Walmart can accurately identify where contaminations or problems come from.
This technology ensures safety and accountability. Walmart is better able to guarantee the quality of its products. They are able to save money and, in case of lawsuits, fully or partially shift accountability towards the supplier. For example, if an Ecoli outbreak were to occur, the problem would be detected quickly, and the lot that caused it could be discarded without wasting the entire supplies.
Customers in Walmart can also scan items near their isles to instantly get complete information on them, including their journey from the warehouse to the store and everything in between.
There are numerous advantages of Blockchain in logistics. But the top 4 most important ways of transformation are traceability, payment security, automation, and speed.
The logistics industry can benefit from accurately tracing the source of its products step by step and finding faults accurately. Security of payment, speed, and ease are what blockchain technology offers the supply chain through smart contracts and direct transactions.
The possibilities are endless, but the adoption of this technology has been the main issue. Staff needs to be trained, and digital infrastructure also needs to be established. Moreover, in certain cases, you also need your client and partners to have blockchain technology enabled to make the best use of it.
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