Have you heard of blockchain? Everyone's talking about the new kid on the (logistics) block - who isn't all that new, as it turns out. In truth, the biggest name in cryptocurrency, Bitcoin, has been using blockchain technology since 2009. But, over the years, more industries are starting to realise the potential of this secure industrial ecosystem. In essence, blockchain is an electronic ledger that records transactions. What makes it so valuable is its trustworthiness, due to its shared database. Instead of a single server, information sits on a shared database, making it harder for hackers to corrupt. The logistics industry, in particular, could see this technology as a game-changer. It has the potential to disrupt the industry by eradicating inefficient procedures.
Will blockchain technology revolutionise supply chain management?
In logistics, blockchain technology has the highest potential to improve supply chain management. Successful application could see increased organisation and more effective use of the headcounts. Furthermore, the peer-to-peer network provides trust and optionality without depending on an intermediary. Blockchain technology also promises solutions to reduce counterparty, country, and settlement risks. And, because ledgers are immutable, keeping records will be a simpler process, making it easier to adhere to compliance and KYC procedures.
Focusing on the future
Is blockchain technology the way of the future? It has the capacity to enhance the systems currently in place. But, it will take some time and improvement before the whole market can make use of the technology. Both security and scalability will need to be top of the range to entice all parties to join. For institutions to use the technology, there will need to be clear guidelines in place. Only once a proper regulatory is in place, will blockchain be able to unveil its full power. As it stands, companies are already aware of the possibilities and implications of this technology. Even so, we all need to follow the trend closely to avoid being on the sidelines once blockchain is ready for day-to-day business. We are exploring ways on how we can adopt this technology and adapt it seamlessly to our industry.
Are you looking for a logistics service provider capable of adeptly handling your commodity across the entire supply chain? Get in touch, and we’ll provide you with a tailor-made solution.