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April 26, 2021

How Blockchain Is Revitalizing the Logistics Industry

Blockchain cuts through the complicated and often hidden steps in logistics supply chains, providing clarity and transparency to each and every touchpoint along the way.

We’ve discussed earlier just how much clarity Blockchain can bring to the supply chain. And the ultimate supply chain – the logistics industry – is reaping huge benefits from the technology’s unique ability to address the industry’s unique pain points. 

 

Blockchain and logistics: a perfect match

Logistics is a multi-trillion dollar-a-year industry. There are a lot of moving parts behind that simple Amazon delivery you’ve been waiting for, including the management of fleets, deliveries and inventory, as well as the payments associated with all of these variables. Whether it’s something as simple as a missing package, or as world-debilitating as a mishap in the Suez Canal, a problem in the logistics supply chain can cost money, customers and ultimately – reputations. 

In just a few years, Blockchain has become a reliable, secure and traceable way to track processes and supply chains. Working with technology companies that are competent and experienced, freight companies and their clients are transforming the way they ship packages and serve their customers.

 

What Blockchain can do for logistics

A shared, centrally located ledger allows for a way to keep track of shipments, contracts and payments. For example, properly applied Blockchain technology can support continual monitoring of bills of lading – tracing exactly where a shipment was loaded, the stops it has made along the way, and the billing associated with the freight vendors. This type of monitoring keeps the data transparent and secure, while ensuring that any mistakes are easily pinpointed and identified for resolution. All told, this means a more efficient and optimized system and, ultimately, a huge savings of money. 

 

Follow the leaders

In the past few years, industry leaders like IBM, Unilever, Walmart, and shippers UPS and DHL, have initiated programs leveraging the power of Blockchain technology to facilitate and expedite the logistics supply chain. There has been a lot of attention lately on freight payment, an area where industry experts estimate that at least 10% of freight invoices have inaccurate data or other mistakes. Blockchain technology supports the use of Smart Contracts, which enable financial and commercial contracts to initiate automatically once previously established conditions are met. This automation means that shippers get paid faster, and more accurately, paperwork is reduced along with human error, and mistakes are easily identified.

Blockchain is such an important part of the future of the logistics industry that the Blockchain in Transport Alliance (BiTA) forum was created to develop standards and practices, and facilitate an ongoing dialogue among logistics professionals. The group now has more than 500 members in more than 25 countries, and is still growing in size.

 

Easy to get started

In 2021, Blockchain has evolved far past the “What is that?” stage into the “Get us that!” stage. Fortunately, it’s easy to get started using Blockchain to cut costs, build efficiencies and expedite processes, no matter what part of the logistics supply chain you are in. BanQu works with logistics companies of all sizes to identify your specific pain points, and create a bespoke plan leveraging Blockchain technology.

 

Conclusion

It’s a no brainer that the powerfully secure and preserved providence of Blockchain technology is a boon to the logistics industry. Former barriers to use, such as the technology’s newness and inexperienced vendors, are melting away and vendors who have launched successful programs with real results – like BanQu – are easing any residual concerns.

BanQu creates blockchain solutions for some of the modern world's biggest challenges, such as supply chain transparency and identity platforms for impoverished populations. We believe that with blockchain's bright future, world poverty can become a thing of the past.