Companies such as FedEx, UPS and DHL deliver millions of packages worldwide. Websites offer trading features such as artificial intelligence, trading robots, market analysis, live clients and much more for bitcoin traders. However, these logistics companies now have to deal with new technologies that may be able to improve their business operations. You can click Bitcoin for more information.
One of these technologies is blockchain technology which can benefit the shipping and logistics industry by eliminating specific barriers such as counterfeiting, fraud and security risks. The below mentioned section introduces the possible ways it can benefit the shipping and logistics industry as well as some recent developments that have come into play in this area.
Blockchain can profoundly reshape global supply chain management by bringing interoperability between carriers and shippers, across different jurisdictions, along with new levels of security to transport materials from one point to another. The technology can 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 an IBM white paper, the company uses distributed ledger technology to digitize, track and verify shipping containers across an entire supply chain network. The report states that this can increase the safety of the container transport system while reducing the total costs. The solution is based on existing technologies and networks in the shipping industry today. A blockchain-based solution can inform how people handle a shipment’s journey across national borders. Let’s discuss all the potential use cases of blockchain technology in the shipping and logistics industry.
Faster and leaner logistics in global trade:
The shipping and logistics industry has been an industry that has faced many challenges, such as delays and cost overruns. As a result, businesses are now looking to blockchain technologies to improve supply chain efficiency. In the ICS Logistics report, 35% of the companies surveyed stated that they have already implemented digital technology in their processes, such as tracking the location of logistics drivers, real-time tracking of shipments, control of authorized personnel access and optimized processing times for orders. . These real-time solutions are likely to be further enhanced by blockchain technologies that can reduce the overall cost of transportation and delivery services by avoiding penalties for errors or improving security procedures.
Quality control for products:
The shipping and logistics industry is a significant contributor to the global economy, with annual revenues estimated at over $3.3 trillion. The global market is also projected to grow at an incredible pace of 15% per year until 2022.
The enormous potential has attracted many players with access to a significant amount of capital, including large companies such as IBM, who are exploring possible use cases for blockchain technologies in this industry. For example, according to a report by IB Times, IBM has started 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 can lead to better delivery times and reduced incidents across the supply chain network. According to a report by PwC, blockchain can increase transparency and efficiency in supply chain operations by eliminating points of failure. The world’s supply chain is vast and complex, and the movement of goods occurs under different conditions. As a result, it will increase the risk of fraudulent activities such as product counterfeiting and smuggling.
The introduction of blockchain technologies can bring transparency to these processes, which could affect their operations in Europe, Asia and Africa. A large percentage of trade in these regions crosses multiple jurisdictions, opening doors to potential threats such as smuggling that could be eliminated using blockchain technology. Blockchain technology has a wide range of benefits for senders in terms of ease of use and security, and transparency issues.
Paperless documentation:
Blockchain technology could allow businesses to 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 can support over 1 million documents per second.
It will make it possible to store documents on the blockchain network, allowing faster and more efficient access to these documents when needed. The report states that supply chain management is one of the areas where companies can implement blockchain technology without affecting operations or existing processes. Paperwork in shipping 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 can also use blockchain technology to automate the document verification process, storage and management in this area. It will reduce the high costs associated with searching and storage considerably, given that documentation is usually stored in several places.
The combined benefits can lead to operational cost savings by reducing the time lag between order processing and delivery and eliminating points of failure across various processes. In addition, it leads to increased customer satisfaction from higher quality standards, faster delivery times, reduced shipping incidents and greater efficiency.
