Companies like FedEx, UPS and DHL deliver millions of packages worldwide. The 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 can improve their business operations. you can click Bitcoin for more information.
One such technology is blockchain technology which could benefit the shipping and logistics industry by removing specific barriers such as counterfeiting, fraud, and security risks. The part mentioned below outlines the possible ways it can benefit the shipping and logistics industry along with some recent developments that have come into play in this space.
Blockchain could profoundly reshape global supply chain management by bringing interoperability between carriers and shippers, in different jurisdictions, as well as new levels of security for transporting materials from one point to another. The technology could 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 scan, track and verify shipping containers across an entire supply chain network. The report says this could increase the security of the container shipping system while reducing overall costs. The solution builds on existing technologies and networks in the shipping industry today. A blockchain-based solution can tell how people manage a shipment’s journey across borders. Let’s discuss each potential use case for 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, companies are now turning to blockchain technologies to improve their efficiency in supply chain management. In the ICS Logistics report, 35% of companies surveyed said they have already implemented digital technology in their processes, such as logistics driver location tracking, real-time shipment tracking, authorized personnel and the optimization of order processing times. . These real-time solutions are likely to be further enhanced by blockchain technologies that could reduce the overall costs of transportation and delivery services by avoiding penalties for errors or improvements in security procedures.
Product quality control:
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 expected to grow at an incredible rate of 15% per year until 2022.
The vast potential has attracted many players with access to a significant amount of capital, including large companies such as IBM, exploring possible use cases for blockchain technologies in this industry. For example, according to a report by IB Times, IBM has embarked on an experiment with shipping containers where it plans to use blockchain technology to track containers as they travel from port to port.
Smart contracts could lead to better shipping times and reduced incidents across the entire supply chain network. According to a PwC report, blockchain can increase transparency and efficiency in the supply chain industry by eliminating points of failure. The global supply chain is huge and complex, and the movement of goods occurs under a variety of conditions. As a result, this will increase the risk of fraudulent activities such as product counterfeiting and smuggling.
The introduction of blockchain technologies could bring transparency to these processes, which could affect their operations in Europe, Asia and Africa. A significant percentage of trade in these regions crosses multiple jurisdictions, which opens the door to potential threats such as smuggling that can be eliminated using blockchain technology. Blockchain technology has a wide range of advantages for senders in terms of usability and security, as well as transparency issues.
Blockchain technology could enable businesses to completely ditch paper documents for electronic transactions. A report recently published by IPTS suggests that the available storage space of the blockchain is such that it could support more than one million documents per second.
This would allow documents to be stored on the blockchain network, allowing faster and more efficient access to those documents when needed. The report indicates that supply chain management is one of the areas where companies could implement blockchain technology without affecting existing operations or processes. Shipping and logistics paperwork can be time-consuming and tedious, especially when multiple parties are involved in a transaction or business relationship.
The highly secure nature of blockchain technology makes it ideal for use in the transportation and logistics industry. Moreover, users could also use blockchain technology to automate the verification process, storage and management of documents in this space. This would significantly reduce the high costs associated with searches and storage, since documentation is usually stored in multiple locations.
The overall benefits can result in operating cost savings by reducing the time between order processing and delivery and eliminating points of failure in various processes. Additionally, it leads to better customer satisfaction through higher quality standards, faster delivery times, reduced shipping incidents, and greater efficiency.