What is the Future of Logistics with blockchain? | Exhibit Tech

What is the Future of Logistics with blockchain?

Understanding the past and observing the present enables extrapolation to what the future holds for the logistics Industry. Increased globalization, free trade, and outsourcing all contribute to a continuing and growing interest in logistics/SCM.

A McKinsey & Company study found that “By 2020, % of the world’s goods would be designed and produced in a country other than where they are consumed, up from 20 % today.” There will be a massive shift in the movement and consumption of goods, necessitating ever better management of the associated supply chain processes. With the recent pandemic, logistics services have become even more in demand, with everyone requiring online purchases due to the current lockdown.

This situation has demonstrated the effectiveness of this industry in keeping things running as smoothly as possible during a crisis. Consider a realm without logistics; it would be chaotic, even more so than life currently feels. Logistics has aided our personal development. Improvements in logistics services help the world run smoothly, allowing us to enjoy essential and luxury items from all over the world. This industry has often embraced technology and will continue to do so

Purchasing items online has become a simple process. It means that people can buy goods in a matter of minutes and have them delivered in a matter of minutes. With just an increase in competition, its warehouses that store the goods and the distribution network that gets them to each of us have seen a dramatic change. Purchasing items online has become a simple process. Because of the industry’s tenacity and foresight, those at home can maintain some semblance of normalcy in terms of getting what they need when they need it.

By definition, logistics is the art and science of obtaining, producing, and distributing material and products in the proper place and quantity.

Transport, Shipping, and Logistics Issues to be solved Using Blockchain

Technology Payment for transportation and risk management

 The average amount of day’s sales in inventory in trucking is 36.9 days. Smart contract payment technology can reduce payment delays and disputes. 

Administrative expenses

 The cost of document processing and administration can reach 20%. blockchain aims to reduce transportation costs accounting for two-thirds of total costs. Blockchain-based technology can significantly help to reduce it. 

Quality control and freight monitoring 

Cold chain monitoring is a significant challenge for the pharmaceutical industry, where temperature variations affect 8.5 percent of global shipments. This figure can reach 20% in some countries. 

Transparency and faith

 Cargo thefts alone are estimated to cost the world $30 billion per year. The implementation of blockchain results in a reduction in illegal behavior and its detection throughout the supply chain. Blockchain enables transportation and logistics companies to run more efficient and cost-effective businesses. 

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