Blockchain Fixing the Problems in Global Supply Chains and LogisticsOctober 6, 2018
By comprehending major trends and their inherent opportunities and risks, decision-makers and leaders within the supply chain arena can start to harness and integrate key platforms. Particularly, blockchain technology is quickly developing as one of the most transformative trends today – and one which can recreate and redefine most of the existing processes and systems within logistics.
Even though it’s a relatively new and ambiguous concept among many enterprises, blockchain is developing quickly and is poised to affect vital functions within logistics.
You see: blockchain is a distributed ledger which exists in different nodes on a network, instead of a single, centralized location. That distributed ledger is shared through P2P networks on devices and computers across the globe. What’s more, a consensus mechanism is designed into the ledger which allows transaction among parties to be confirmed by the network.
It can, for instance, offer insights around routes, drivers, as well as on-the-move services and goods. Moreover, blockchain can yield crucial benefits to B2B transactions – like smart contracts and cross-border payroll processing.
Turning Theory into Transformation
When we talk about the real implementation of the technology, stakeholders need to guarantee that the essential levels of understanding and trust are in place.
In the beginning, the trust may well be low among particular parties, particularly those who are familiarized to paper-based solutions. That trust would require to be built – particularly with operators confirming quantities within on-road fleet management or warehouse.
Looking forward, a thriving solution would have to offer a simple to use, practical, and trustworthy option to accomplish the wholesale buy-in which is needed.
Finally, blockchain will require to be utilized in a manner which can incorporate into every logistics operations – and that integration will require to guarantee that the core functionality of blockchain tech could be leveraged by every operational system of every party.
Streamlining through Smart Contracts
One standout scenario of this tech already in use is a platform termed as Ethereum. It’s a decentralized platform which runs smart contract. Such are contracts steered by applications which run as programmed, with no chance of fraud, censorship, third-party interference and downtime.
For most logistics stakeholders, the platform is set to facilitate in dealing with costs and monitoring inventory levels which will lead to lowering transaction price and establishing more agile supply chains.
Bring the data utilized throughout an import or export process, for instance. If import terminals obtained the data from the bill of ladings much sooner within the process, freight forwarders and shipping terminals could plan and perform more effectively without risking sensitive data about the value of the cargo and owners.
XinFin which is a hybrid blockchain technology is focused on Business Process Efficiency enhancement and has organized blockchain solutions for global trade and finance. With a goal to connect the worldwide infrastructural discrepancy along with the marketplace platform – TradeFinex, XinFin provides tools to assume Blockchain powered P2P trade and finance contracts among suppliers, buyers, institutions, and governments.