Beyond Hype: How Blockchain Changes Logistics
There are multiple industries and fields around the world in need of changes due to outdated processes and models. Numerous startups have taken on this need in the last few years, especially in the area of logistics and supply chain, showing some traction in implementing efficient blockchain solutions within projects across the industry. There are other industries also in need of change with similar ongoing initiatives showing the true benefits of blockchain can help move from marketing hype to revolutionary, tangible impact.
In the arena of logistics, here are a few sectors developing blockchain projects:
> Shipping - a blockchain framework is being developed by the Blockchain in Transport Alliance (BiTA) to increase education, and standards in applying the new technology. Big name participants, such as GE Transportation, have recently joined the growing group of companies in BiTA.
> Pharmaceutical - companies looking to fight back against fake goods and monitor drugs throughout the supply chain are focusing on blockchain to create accurate, real-time tracking and improve overall transparency.
> Food - contamination continues to be a recurring issue due to the difficulty in tracking the initial source of a problem; clear traceability from producers and warehouses can help avoid future issues;
Other industries that transport products such as electronics, and luxury goods are also looking at the many benefits of implementing a blockchain system, specifically:
- Less (physical) paperwork that needs to be signed, sent, verified, and filed properly;
- Accurate data history of supplier performance (e.g. on time pickup / delivery);
- Evaluating freight capacity in real-time to maximize available space;
- Streamlined payment settlement.
Overall, blockchain in business is still working on proving itself as an game-changing solution that goes beyond theory and buzzwords. The fundamental issue of trust in developing a blockchain network and being able to properly oversee a decentralized system without an authority, is intensely debated across industries. Established and mature companies leading initiatives will also need to be able to openly share findings to all industry players in order to truly take blockchain to the next level. Enthusiasts and skeptics are both waiting for a proven blockchain application to replace current structures to start a wave of adoption and usage.
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Image Credit - Adalidda(PI)