6th April 2020
Facilitating trustworthy partnerships within multiple factions is the what blockchain promises the freight and logistics industry!
Blockchain technology was introduced in 2008 by Satoshi Nakamoto, as a distributor database technology for the storage of digital information records; thus eliminating the need for a central structure and instead offering stakeholders in the field of logistics, both instant clarity and security of the stored data.
Today, 10 years since inception blockchain technology is gradually augmenting the transportation and logistics industry by enhancing operations and a streamlined service!
What if there no longer was an intermediary within the logistics trade?
If there was no middle-man and transactions were confirmed, recorded and synced automatically, thus eliminating 20% cost for administration and processing!
This is the future the world of logistics is eagerly hoping to achieve. Let’s look at the benefits.
With blockchain there are no administrative costs or middle-man, you are looking at ‘smart contracts’ (coded programmes), an efficient service and advanced documentation process! Thus we are looking at the dawn of new era within the world of freight and logistics with company ambitions sky rocketing!
Why? Think about it, the very core and context of logistics management, services and tracking are getting a reboot, through blockchain technology suggesting greater efficiency within the industry; facilitating quicker trimmed down global chain logistics, advanced clarity and structured tracking together with a fully automated industrial process.
Companies looking at ‘smart contracts’ through blockchain, are adopting the advantages of streamlined services and the elimination of intermediaries for greater cost-efficiency. This in turn will leave freight and logistics companies with more funds to develop other core aspects of the industry. The most notable factor however in going for smart contracts is the absence of error and fraud within the process, since smart contracts run on codes; automatically encoded to perform tasks as and when pre-programmed conditions are met.
Let’s look at blockchain as a technologically enhanced ledger where data is saved; this system works to protect your data by making sure personal dealings and communication are cryptographically signed. No more breaching of personal data through traditional ledgers which only provide a limited-cover of security. This feature will be one of the strongest points within blockchain technology since it guarantees the necessary security to control or avoid data manipulation, risk of hacking, data compromise and offers efficient risk management.
Industry adaptation is the biggest challenge where this revolutionary technology and its stakeholders rely on an increased community of blockchain users within the freight and logistics universe.
It’s a slow process with future stakeholders tackling the process of migrating to blockchain from legacy systems.
The benefits are undeniable though, with the technology already showing great promise within an array of industries and a promise to unlock greater standards in the world of freight and logistics.