
// Blockchain
How Blockchain Helps in Logistics: 7 Working Cases
// Blockchain
Logistics is one of the least efficient sectors in the global economy. In this business, estimated at $ 2 trillion, there are many counterparties, complex and very long supply chains, cumbersome workflows and big problems with the human factor. Blockchain will help simplify this entire logistics system, which, according to DHL, will increase the volume of international trade by 15%, and global GDP by 5%.
Here are seven key processes that will benefit most from implementing blockchain technology in supply chains and logistics.
How it is. International logistics, which accounts for 90% of world trade, is discrete (separate, intermittent) and uses all types of transport: rail, road, air and sea. Moreover, each participant in the supply chain uses its own local accounting system, for example, CRM, BPM, EDM, ERP or another. Communication between these systems is usually carried out on the analog (i.e. traditional) method associated with paper documents: couriers, mail, facsimiles, face-to-face meetings.
This approach creates a lot of problems:
How it will be with the blockchain. The technology can be used to create a unified system of digital document management in the cloud, which will allow participants in the supply chain in real time to track the location of vehicles, goods and their products, even at micro levels.
Who implemented (cases):
How it will be with the blockchain. As for the problem with counterfeit products, the blockchain technology allows you to track the origin of goods from the counter in the store to the specific manufacturer: factory, farm, enterprise, person. And this data has a high degree of truth, since each consignment of goods (or each individual product, if it is something large and / or expensive) is equipped with an RFID tag that constantly monitors the location of the product and the interaction between participants in the supply chain.
In addition, RFID sensors can also measure speed, temperature, humidity, and other empirical indicators. Thus, it is possible to detect a violation of transportation conditions and to identify spoilage of food products, as well as to track the process or the participant who is responsible for this. In addition, if a product is infected, for example, with E.coli bacteria, then a blockchain-based system can identify the source of infection in a matter of seconds and track all infected batches of goods.
Who implemented (cases):
How it will be with the blockchain. According to IBM, the implementation of the blockchain could save the logistics industry $ 38 billion a year. This will be possible thanks to smart contracts that automate most of the workflow and business processes. In addition, a distribution registry will reduce errors, shorten delivery times, and detect fraud.
Who implemented (cases):
How it will be with the blockchain. The technology allows you to automate the billing and payment process by linking these calculations to a specific action, for example, making an entry about the completion of the shipment of goods or the passage of a vessel, container and / or cargo through the border of a country or port. IoT sensors are responsible for tracking actions; smart contracts are responsible for process automation.
Thus, the blockchain solution:
Who implemented (cases):
How it will be with the blockchain. Blockchain technology and smart contracts can be used to create a fair trading platform where companies can hire freight carriers in the shortest possible time on understandable and transparent conditions. At the same time, since all the terms of the contracts will be pre-specified in smart contracts, the level of responsibility of companies will increase, so it will occur immediately automatically, and not after long negotiations and / or a decision of the arbitration court.
Who implemented (cases):
How it will be with the blockchain. Since all data is stored on the blockchain, each participant in the supply chain can at any time check the information for each vessel, container and / or cargo, which reduces the likelihood of discrepancies in the documentation of different parties.
What will increase transparency in logistics:
How it will be with the blockchain. If all the conditions and actions are recorded on the blockchain, then this eliminates most of the problems in the event of a dispute. Participants in the conflict can verify the necessary data on the blockchain and, in accordance with the contract (or the User Agreement), decide who is right and what to do.
Who implemented (cases):