Recently the logistics industry has been gradually developing from a technological point of view. Anyway, there were still some problems with bureaucratic delays and intermediaries they were constantly setting the progress back. That situation was profitable for all kinds of frauds who used all the finer qualities of complex infrastructure in order to do illegal business. This caused heavy economic losses for the legal companies because of difficulties in the network of suppliers and cargo tracking systems.
Logistic chains often cover the numerous stages of the goods movement and hundreds of geographical locations. However, over time, it becomes clear that its getting more and more difficult to monitor events in the whole chain. Its necessary to control and confirm the transportation of goods and quickly react even in extraordinary circumstances which can affect the trip and the time cargo delivery (bad weather conditions, air temperature etc). Thus, high costs of transmission and other factors that led to the increase in operating expenses, appeared. As a result, the current supply chain is not able to provide comfort and speed as the whole industry has become too complicated. The slightest change from the accepted standards can lead to a situation when the business ceases to exist or decreases its effectiveness as a minimum.
Logistics is a complex science, which consists not only in the delivery of a certain product from point "A" to point "B". From the point of view of a practical application, logistics is the choice of the most effective (compared to the present one) option providing the right product, the right quality, the right quantity, at the right time, in the right place. The costs should be minimal on the basis of organizational and analytical optimization. For this reason, all those who want to work in this business, have to learn the basics of customs processing, as well as to study the daily documentation and analyze many other nuances of the sphere. It is necessary to get used to the fact that you will have gradually to sign a lot of partnership agreements, as well as establish communication with team members, drivers, officials, individual clients and other people. Youll have to deal with payments and other details of activities constantly. All this may become obstacles to success.
Blockchain has the potential to solve all of the problems mentioned above. Being a public registry, it can provide customers and auditors with simple and effective tools for tracking the movement of goods before they arrive to their destination. In fact, blockchain is very reliable and effective way of exchanging information. It creates an unchangeable digital transaction register that is supported by a distributed network of computers.
According to The Economist, blockchain is a branched database that contains constantly updated information in so-called blocks. The information in the blocks can not be changed as each block has a time of creation and a link to the previous block of information. The structure of the blockchain makes it look like an open digital journal.
The use of distributed registry technology allows analyzing all components of different industries automatically, including the execution of documents and the schedule of truck traffic. In addition, blockchain is able to cope with paper documentation, which excludes unnecessary numerous intermediaries in the chain. There is an opportunity to put case management in a single centralized service. It is protected from third party invasion, prevents cheating and fraud attempts. This service also provides security, reduces the number of mistakes which are due to the human factor, significantly decreases transporters operational costs as well as transporters cost of services.
The Walmart was the first one to believe in blockchains great future. Now the company tests new IBM technology in mango shipment in USA and pork shipment in China. As the officials say, the advent of technology will raise the effectiveness of stock management and provide the security of the goods shipped. This is essential for Walmart after the salmonellosis outbreak in 2006. At that time, with the utilization of paper docflow, identifying the source of outbreak took more than two weeks. Blockchain will allow getting a full database for any consignment of goods in mere seconds, claim the supporters of this tech.
The transparency of the shipment chain will also bring benefits for the customers. Everything will be certain about goods safety, freshness, lack of unwanted food supplements etc. Also, one can be certain about buying tuna that it isnt a product of illegal fishery. This way, in order to avoid such charges, British start-up Provenance moved to the blockchain. The company utilizes blockchain to track the tuna, the fishery and supplement.
The EverLadger company uses blockchain in supply chain to confirm the source of origin in diamond trading.
The Assetcha.in start-up improves the safekeeping of valuables with the help of blockchain.
The Midasium company makes agreements for the residential leases in an expeditious manner with the help of blockchain.
Since 2016, Port Rotterdam, one of the largest trading ports in Europe, performs a testing of Blockchain logistics tech, and this might be a starting point for developing new levels of transparency in the business. The project is supported by fifteen companies of government and private sectors, which are based in Netherlands, with the assistance of Ministry of Economical Affairs. The creators claim that this blockchain project is unique because it covers all of the logistics supply chains.
The potential of blockchain makes it the perfect mechanism for radical changes of supplying and material support system. Probably, it will solve most of the problems, while changing all of the transport movements and logistics in general.
Logistic chains often cover the numerous stages of the goods movement and hundreds of geographical locations. However, over time, it becomes clear that its getting more and more difficult to monitor events in the whole chain. Its necessary to control and confirm the transportation of goods and quickly react even in extraordinary circumstances which can affect the trip and the time cargo delivery (bad weather conditions, air temperature etc). Thus, high costs of transmission and other factors that led to the increase in operating expenses, appeared. As a result, the current supply chain is not able to provide comfort and speed as the whole industry has become too complicated. The slightest change from the accepted standards can lead to a situation when the business ceases to exist or decreases its effectiveness as a minimum.
Logistics is a complex science, which consists not only in the delivery of a certain product from point "A" to point "B". From the point of view of a practical application, logistics is the choice of the most effective (compared to the present one) option providing the right product, the right quality, the right quantity, at the right time, in the right place. The costs should be minimal on the basis of organizational and analytical optimization. For this reason, all those who want to work in this business, have to learn the basics of customs processing, as well as to study the daily documentation and analyze many other nuances of the sphere. It is necessary to get used to the fact that you will have gradually to sign a lot of partnership agreements, as well as establish communication with team members, drivers, officials, individual clients and other people. Youll have to deal with payments and other details of activities constantly. All this may become obstacles to success.
Blockchain has the potential to solve all of the problems mentioned above. Being a public registry, it can provide customers and auditors with simple and effective tools for tracking the movement of goods before they arrive to their destination. In fact, blockchain is very reliable and effective way of exchanging information. It creates an unchangeable digital transaction register that is supported by a distributed network of computers.
According to The Economist, blockchain is a branched database that contains constantly updated information in so-called blocks. The information in the blocks can not be changed as each block has a time of creation and a link to the previous block of information. The structure of the blockchain makes it look like an open digital journal.
The use of distributed registry technology allows analyzing all components of different industries automatically, including the execution of documents and the schedule of truck traffic. In addition, blockchain is able to cope with paper documentation, which excludes unnecessary numerous intermediaries in the chain. There is an opportunity to put case management in a single centralized service. It is protected from third party invasion, prevents cheating and fraud attempts. This service also provides security, reduces the number of mistakes which are due to the human factor, significantly decreases transporters operational costs as well as transporters cost of services.
The Walmart was the first one to believe in blockchains great future. Now the company tests new IBM technology in mango shipment in USA and pork shipment in China. As the officials say, the advent of technology will raise the effectiveness of stock management and provide the security of the goods shipped. This is essential for Walmart after the salmonellosis outbreak in 2006. At that time, with the utilization of paper docflow, identifying the source of outbreak took more than two weeks. Blockchain will allow getting a full database for any consignment of goods in mere seconds, claim the supporters of this tech.
The transparency of the shipment chain will also bring benefits for the customers. Everything will be certain about goods safety, freshness, lack of unwanted food supplements etc. Also, one can be certain about buying tuna that it isnt a product of illegal fishery. This way, in order to avoid such charges, British start-up Provenance moved to the blockchain. The company utilizes blockchain to track the tuna, the fishery and supplement.
The EverLadger company uses blockchain in supply chain to confirm the source of origin in diamond trading.
The Assetcha.in start-up improves the safekeeping of valuables with the help of blockchain.
The Midasium company makes agreements for the residential leases in an expeditious manner with the help of blockchain.
Since 2016, Port Rotterdam, one of the largest trading ports in Europe, performs a testing of Blockchain logistics tech, and this might be a starting point for developing new levels of transparency in the business. The project is supported by fifteen companies of government and private sectors, which are based in Netherlands, with the assistance of Ministry of Economical Affairs. The creators claim that this blockchain project is unique because it covers all of the logistics supply chains.
The potential of blockchain makes it the perfect mechanism for radical changes of supplying and material support system. Probably, it will solve most of the problems, while changing all of the transport movements and logistics in general.