Achieving excellence in logistics entails working collaboratively with others to optimize the flow of physical goods as well as the diverse flow of information and financial transactions. However, there is a substantial amount of trapped worth in logistics today, owing to the competitive and volatile nature of the logistics industry.
For example, it is estimated that there are over 500,000 personal trucking companies in the U.S. alone. With so many stakeholders involved in the supply chain, low transparency, unstandardized processes, data silos, and varying levels of technology acceptance are common. Many parts of the logistics value chain are also constrained by traditional methods imposed by regulatory authorities. Blockchain technology has the potential to help address logistics frictions as well as realize major gains in logistics process efficiency. This innovation can also improve data transparency and access among supply chain stakeholders, resulting in a system of record.
Furthermore, the inherent cryptographic protocols of blockchain technology improve the trust required among interested parties to share the information. Furthermore, blockchain can help to reduce costs by enabling leaner, more automated, and error-free processes. It can speed up its logistics process all while increasing performance and stability in logistics operations
Provenance traceability of goods can enable efficient and sustainable supply chains on a large scale, as well as aid in the fight against product counterfeiting. Furthermore, blockchain-based solutions have the potential to facilitate new logistics services and more innovative business models.
Blockchain acting as Fuel in Logistics Industry Blockchain solutions will document and record the movement of all commodities used during a shipment. Every time a container moves, a package is filled, or a distribution attempt is made, a record is created. This creates an unbreakable digital paper chain. Blockchain software can record transactions and store digital copies of important paperwork such as a purchase order, bill of lading, customs documents, and other documents. It is also possible to update it on the fly. This enables carriers to notify shippers and recipients of any transportation delays or shifts in expected arrival times while on the road. Temperature zones are recorded by this type of software for cold storage supply chain operations. It not only provides a digital database but also improves the safe transport of temperature-sensitive materials. As a result, it reduces the possibility of bacteria spreading or foodborne illnesses. Blockchain also connects tracking software and hardware tools like serial numbers, bar codes, RFID tags, and the product itself.