Why you Must Consider Blockchain for your Transport & Logistics Business
New emerging technologies are changing how industries and organizations function, change and evolve. In this digital age, it is difficult to find an area of business where there is no potential for technology to improve what we do. Right from your car system that gives you the weather updates every morning, to the text message you receive from your bank regarding your recent financial transactions, everything is aided by innovative digital technologies.
Just like all industries are catching pace with digital transformation, the transport and logistics industry is getting advanced too. From a single owner operator to large freight and trucking companies, adopting digital technology solutions has become inevitable for growth and survival in the disrupted market. Blockchain is one such modern technology that has been doing wonders ever since its implementation.
In this blog, we will take you through the various ways in which blockchain is changing the transport and logistics industry. But before that, for those of you who are new to blockchain, here is a quick definition:
Blockchain is a form of distributed ledger technology, where transaction data is shared by the nodes (computers) on a network, to which transactions are recorded and validated.
Used predominantly in FinTech and banking, blockchain technology solutions have significant applications in logistics, supply chain, healthcare, property and trading, energy, and many more sectors. Here are a few use cases of blockchain in real life:
- Porsche and Toyota use blockchain and distributed ledger technology to develop new mobility ecosystem that accelerates the development of autonomous driving technology.
- A leading healthcare company combines blockchain with big data to help doctors and patients securely transfer sensitive data.
- IBM launched its Blockchain-as-a-Service (BaaS) solution in 2017 for businesses across several industries.
- Shipping giant DHL uses blockchain-backed logistics to maintain the integrity of transactions and a digital ledger of shipments.
Blockchain for Transport and Logistics- Enabling Efficient and Cost-saving Business Operations
The transport and logistics industry undergos challenges such as inefficient data and document management, money laundering and fraud, complex regulatory compliance, limited traceability, complex reverse logistics processes, non-transparency in booking and pricing, and more. Blockchain can help address these challenges. The primary usage of blockchain in logistics and transport is in the areas of automation, security and providing visibility across the supply chain.
Typically, a shipment must pass through several organizations and communication channels before reaching its end destination. Any gap during its transition can cause the container to be held up or lost. Blockchain helps in solving this issue by securely recording each move and enabling real-time tracking of shipments.
Here are a few more potential uses of blockchain to improve the functions of your transport and logistics industry:
- Visibility across the entire value chain
- Detailed insights and instantaneous end-to-end tracking of your shipments
- Notifications about any handouts or the condition of your goods at any time
- Quality control of goods by monitoring and maintaining them at the right temperature whenever required
- Smart contracts and automated payment transactions to speed up payments for your shipments
- Easy and seamless capacity monitoring and planning
- Traceability in reverse logistics
- Quick, faultless, and efficient invoice and payment management
- Easy coordination of documents on a digital ledger, eliminating paperwork and manual processes
- Flawless delivery with effective order tracking and authentication
What’s the future?
The adoption of blockchain in supply chain and logistics has been slower than expected, and its implementation is no small task. But it is going to be an absolute game-changer very soon! Adopting blockchain will help you to accommodate the ever-evolving expectations and needs of your customers and streamline your business operations.
To start with, educate your employees about blockchain, develop ideas and specific use cases, set an adoption strategy, conduct proof-of-concept tests, build capabilities and implement blockchain solutions.
Need help with implementing blockchain for your business? With an expert team of technology consultants and Blockchain developers, we at Gateway Digital can help you resolve your business challenges and achieve secured business processes.
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