There are many new technologies affecting the logistics industry, and one of the most promising among new technology is blockchain. Blockchain can be used successfully in many different industries that have nothing to do with cryptocurrency. Technology like blockchain is believed to dramatically change company’s supply chains and save billions of costs on operations.
What is blockchain?
Blockchain is a digital register with advanced encryption mechanisms that lets companies track and record transactions and securely store data, making it almost impossible to steal, delete or change information. Every transaction or record is a single block, and after verification, it becomes a part of the sequence. This technology allows companies to keep every transaction, documentation and any manipulation made on an object in one place. This allows companies to have complete transparency on every single action or data unit, as well as protection from ransomware and cyber attacks.
How can blockchain be used for supply chain needs?
A supply chain is a very complex structure with hundreds of transactions and modes of communication involved. Verifying and maintaining information that flows through the supply chain can be time-consuming and expensive. Blockchain technology allows companies to immediately verify and lock each data unit, which supplies robust protection against data stealing, deleting or unwanted modifications. In a nutshell, blockchain provides transparency on every transaction and manages the data in a systemized and easily accessible way. Any manufacturer, auditor or supplier can access required data or payment in no time, which makes operations processes much faster and more efficient. The difference in supply chain performance could potentially be incredible after the blockchain contribution, as it drastically reduces extra interactions, increases data security and authenticity, apart from significant time and cost savings.
How it affects the logistics industry?
Apart from supply chain needs, blockchain can be utilized for many other needs of the logistics industry. Temperature-sensitive shipments often suffer from delays and temperature deviations, and lots of them may become damaged during transit. It happens because of poor temperature tracking, customs delays and more. Blockchain can help solve these problems, as it allows fast access to any data and transaction on a certain shipment. When combined with connected devices (Internet of Things), the data from trackers is transmitted to the blockchain, where it is stored and used for analysis.
In conclusion, blockchain is one of the most up-and-coming innovations to grow, develop and enhance the performance of the logistics industry. Companies that invest in such technologies would certainly be ahead of the competitors and will save a significant amount of money.