CogniKYC’s Blockchain ecosystem & Instant ID verification empowering Supply Chain & Logistics Business
Summary
- The global logistics industry is expected to reach $15.5 trillion by 2023. CogniKYC’s Blockchain ecosystem will be a necessity for every future business.
- With 10.4% CAGR, the supply chain management will reach a valuation of $23.79 billion by 2024.
- With zero or minimal human intervention, autonomous vehicles are going to power the future of the logistics industry. This industry is expected to experience high revenue growth of $26 billion by 2025.
- Money laundering, Identity theft, financial terrorism and cross-border illegal cash movement are the major challenges for supply chain and logistics industry.
- Blockchain, Instant ID verification, Facial recognition and Artificial Intelligence are the perfect tools that can eliminate every issue and ensure financial stability.
With the fast pace of innovation and technological development in the last decade, we might have forgotten about the importance of supply chain management and logistics industry and how they have been an integral part behind the success of many industries like retail and eCommerce. I remember the struggle and anger experienced by many customers when they could not get their hands on new stereo sound systems from Japan and they messed up the situation of how we are unable to track our order. Well, after some long weeks over calls and emails, we found them to be shipped to another country due to some internal error on the part of the shipment company. Waiting for too long to receive some vitals equipment or life-saving drugs were the norms of the past and before the supply chain management and logistics industry did go through digital transformation. The headache of all the issues experienced by the supply chain and logistics businesses can only be eliminated by CogniKYC’s Blockchain ecosystem.
Now the supply chain and logistics sector have become the backbone of every products and services industry ranging from retail, pharmaceutical, firearm and ammunition, finance, eCommerce and more. The Internet boom has led to a shift in business focus from customer-centric business models and access to every service from physical retails stores to online eCommerce websites. The global logistics and transportation industry has always played a vital role in the delivery of goods and is expected to grow $15.5 trillion by 2023 with 92.1 billion tonnes of goods being handled. [2]
Growth and Changes
“Our struggles become parameters of our success, changes and growth for continuous evolution.”
Though the Supply Chain and Logistics industry have been used interchangeably to describe their functions, they have evolved a lot over the years with digitisation and nuances of their functions. While they are separate from each other, they complement each other in many key areas of customer-centric industries which are still dependent on the sale of manufactured as well produced goods and services in industries like foods, pharma and. With the evolution of IT sectors, supply chain management is managed through various applications and Software as services platforms. The Supply chain management market has been grown remarkably over the years, it’s valuation is expected to increase from $14.48 billion in 2018 to $23.79 billion by the end of 2024 at 10.4% CAGR. [3]
In respect to retail and eCommerce industry, distribution and logistics have become a key functional area of the Supply chain management industry. Retail and eCommerce is one of the busiest areas of the supply chain and logistics industry. The logistics industry has been experienced tremendous growth across vertical sectors like transportation, shipping and air cargo. Increasing fuel cost, driver retention and vehicle maintenance cost have been the factor behind the high cost of products and services. To solve this issue, businesses have been working to adopt autonomous transport systems that can work with zero to minimal human intervention. With $8 billion in 2018, the autonomous driver market has achieved exceptional growth rate at 12–14% CAGR and it’s expected to reach $18 billion by 2022 and $26 billion by 2025. [4] However, the main challenges for the supply chain and logistics market lies in the customer identity verification, customer onboarding experience, compliance maintenance and reducing operational cost with the digitisation of existing systems.
Problem & Challenges
“With better availability of services and competitive business models, retail supply chain and logistics is struggling to grab the attention of the customer, increased dissatisfaction among supplier & vendors and witnessing lower profit margins.”
Every industry has its own sets of problems and challenges, so is the cases with supply chain and logistics. In retail and eCommerce sectors, advanced technology and customer-centric policies have resulted in the stratospheric business as well as revenue growth. The well-established eCommerce platforms like Amazon and Shopify have set the great benchmark in the retail and eCommerce space with their focus to logistics, financial services, warehousing, sale of goods & services at an affordable price, and empowering sellers and suppliers, thereby driving cut-throat competition across every industry. Retail and eCommerce supply chain and logistics industries are still far away from perfections, these problems and challenges are eating way revenue and disrupting workflow for ideal operations environments.
Problems in the Logistics Industry:
- High Fuel and maintenance cost.
- Talent shortage: From warehousing, packaging, tracking and delivery, logistics control this complete business cycle. With a shortage of professional staff and
- Unable to adapt to advanced technologies and improved business process.
- Bad customer services experience — Business and customer is unable to track and deliver their shipment in a timely manner which has are directly effecting business.
- Physical cash money laundering and illegal goods trafficking
- Government and Environmental Regulations
Challenges for Supply Chain market:
- Data duplication and poor data validation systems causing financial friction for funds dispersal.
- High operational cost and inefficient business process
- Long onboarding time for sellers, logistics, suppliers and retailers.
- Store information on a centralised database which is a primary target of hackers for identity theft and financial terrorism.
- Lack of decision-making data to create smoother supply chain workflow.
- Availability of high quality good and services in time as per market demand.
- High cybersecurity risk can prove lethal to online eCommerce business. Unknown merchants can use these platforms to transfer money
- With increasing stringent regulations and fines, companies and vendors have been fined for violating KYC, AML and various compliance regulations.
Cross-border Money Laundering threat
Between 46% and 82% of all transaction and $4 trillion banknotes of various currencies in circulation, its is a hint towards physical transportation of cash remains the leading cause of cross border money laundering activity. [5] The global digital payment economy has experienced exponential growth with $3.09 billion in 2017. [6] While the world is going digital and cashless financial market has been increasing dramatically, there has been increased in physical transportation of cash making it very difficult to monitor unregulated cash economy. Due to the physical nature and ease of transactions, cash has been used to fund terrorist activities cross-border and have been sent through cargo, mail and trafficked through humans. The online payment system is not safe from financial terrorism, identity fraud has enabled suspicious merchants to purchase fake products through stolen credits cards of the customers. Human trafficking and illegal transportation of human and goods are still prevalent issues in the Supply Chain and Logistics industry.
Evolution with Advanced Technologies
“Identity fraud and financial terrorism have destroyed the lives of many individuals and business. It’s high time supply chain and logistics industry adopt instant identity verifications and advanced technologies systems.”
With increased financial terrorism activities of cash usage to sponsor various crimes globally, it has become necessary for a business to be completely compliant with every KYC, AML and CFT regulations. Instant Identity verification, facial recognition and digital identity manager have become vital for the survival of many businesses. With the synergy of Blockchain, Artificial Intelligence, Machine Learning and Big Data, CognisSys designed solutions with advanced technologies for today’s business to tackle these threats and improve the business experience.
Blockchain
CogniKYC is a Blockchain-based digital document manager that ensures the customers, businesses and regulators have granular access to every information about the product like its origins, quality, condition, nature, payload and can easily track it in real-time.
Once both business parties upload their document on the decentralised ledger, public key and private key will be automatically sent to each of them. Blockchain ensures data privacy and network security by storing every data inside a highly encrypted decentralised database. Every change made in the document and transaction will be updated in the ledgers in real-time. The individuals can easily manage their access to their documents once their contract ends with the business providing enhanced due diligence for smooth KYC regulation compliance.
Business can reduce their operational cost and allocate funds to other important function of their business by ensuring data privacy and self-sovereignty of the customers. Automatic smart regulation adherence will reduce operational cost and the risk for business, vendors, cargo & mail carrier, regulators and customers, thereby driving the cost of the products and ensuring year-on-year sustained revenue growth for the business.
Artificial Intelligence & Instant Identity Verification
With CogniDNA, an Artificial Intelligence-powered deep web search engines, the business can perform a risk-free transaction with every vendor, supplier, retailer, merchants and customers. Every document is analysed, searched, verified and validated by crawling private and public databases containing AML/CFT, PEP, sanctions, watch-lists and all the databases for enhanced due diligence and audit compliance for a confirmed real world identity match. With auto-generated IAAL3 and AAL3 level reports, the business receives confirmed risk assurance into any individual and companies identity. Business is completely assured about the identity of both business parties, it reduces their customer onboarding time and compliance risk for every future transaction.
Know more about risk assurance, IAL 3 and AAL 3 report.
Facial Recognition
With CogniID, our facial recognition solution, businesses can instantly onboard their customer, vendor, supplier, merchants, human resources, manufacturers, delivery team, manpower, warehousing team, human resources and improve their overall logistics process. Through mobile id verification coupled with facial recognition, businesses can save themselves and verify the identity of any third-party business in real-time with PEP and Sanction screening. Customers and suppliers can be easily authenticated with Multi-factor authentication like biometrics, OTP, password and cryptographic tokens. Fraud monitoring and periodic review of every individual necessary for the business to reduce the risk of being non-compliance to KYC, AML and CFT regulations. Instant video identification is the key to customer due diligence and complete identity assurance for the safety and security of the supply chain and logistics industry.
“We have the vision to transform the supply chain and logistics industry and vehemently advocate for continuous changes.”
Read more about the types of identity verification and their importance.
Automating Supply chain and Logistics with Blockchain ecosystem
“Supply chain and logistics are experiencing plenty of issues that Blockchain & instant IDV can eliminate them efficiently.”
Blockchain, Artificial Intelligence, Facial Recognition and Instant ID verification are going to be pillars of every successful business within the next five years. With the rate of adoption of these technologies, a positive trend has been witnessed across the supply chain and logistics industry to efficiently migrate their business operation on advanced technologies platform. Each of these technologies has created a chain reaction of the positive trend in the industry and its verticals sector. With an increase in positive consumer spending trend and on-going efforts to attract and engage customers with their brand, the competition will increase within every business.
The most simple version of the supply chain and management ecosystem can be described as the flow of goods and money between two business parties (let’s say, importer and exporter). This exchange of goods and money can be witnessed across every industry from SMEs business to large scale organisation. Supply chain and logistics spans can over long processes and many different complex stages with extremely complex data making it vulnerable to human error, track, store and manage this information.
“Creating a Blockchain ecosystem for financial transparency, market trust and information accountability without disturbing the present flow of business operation is the forte of CognisSys.”
Connecting with Blockchain Ecosystem
Business can achieve their full potential by connecting everyone from top to bottom with CogniKYC’s blockchain ecosystem. Once they upload their documents, it will be stored on an unalterable or immutable decentralised ledger. The documents and reports are visible only to those individuals with access to time-sensitive public and private keys ensuring the highest level of individual identity privacy and security. Every transaction is stored on a ‘block’ creating a chain connecting every individual connected to the transaction which provides a seamless flow to every information across the public database. With the digitisation of every document through mobile apps, a business can digitise their business, move towards a true paperless future with automatic OCR transcription and duplicate data elimination.
Instant ID verification and MFA
Business can easily onboard new clients and customers while being completely assured that every individual is not a liability risk of their business. Business can redirect their resources and funds to other areas of the business as we have reduced onboarding time for hiring employees and new vendor or supplier. The individual can only be verified and validated from various valuable data repositories and only after passing stringent KYC and AML security checks. With the periodic review of customer data and continuous fraud monitoring, every attempt of data theft and financial fraud will not reach and affect your business. To improve business and customer relationship and eliminate any third-party In-Person Verification (IPV) cost, every customer has to authenticate their identity to access the ledger with easy to use Single Sign-On option.

Origination and Trackability
Since every data is available about the transaction, the business can easily check the origin of every transaction. Information trackability & transparency with the verified and validated details from business owner, CEO, founder, employees, supplier, vendor, manufacturer to the entire logistics manpower teams. Every minute details about the transaction and individuals associated are updated on the public ledger in real-time. It ensures consensus about data among everyone, checks the origination of every entity in the chains, the immutability of data and complete finality with real-time updates connected to this transaction chain.

Smart Compliance
Smart Contracts provides a fast, precise and security with accelerated deal closure and regulation compliance experience creating an environment of trust across the market driving year-on-year revenue growth for the business. With every data available about the identity of the person and their financial success rate, businesses can easily strategise and formulate contract agreement terms with exact transaction data with their clients. The smart contracts are stored on the ledger along with documents and reports making them the involved parties financially accountable as per the decided terms. It reduces complications in managing contract terms and human error due to negligence and foreign attacks. Anyone in this chain violates the smart contracts terms, they will be penalised and every action will be visible to everyone the blockchain ecosystem negatively affecting their chances of future financial success.
Digital Payments
Real-time goods tracking and with timely delivery of goods and disbursal payments create trust and increases direct positive engagement with the business. Digital payments create trust and transparency among the individuals and bring them under financial inclusion, thereby incentivising people to fulfil the terms of their contract. Digital payment services reduce dependencies on cash economy which has been unmanageable, unregulated and untraceable for a long time. Digital payment systems like mobile wallet and online banking services increase financial stability and create their credit risk score based on their financial success rate thereby making them eligible for loans and other economic opportunities. Business can conduct smooth business with anyone within our blockchain ecosystem and experience sustainable business growth while creating exceptional client-business relationship.

Transaction Monitoring
With the availability of immutable transactional data, entity information and risk assurance reports, companies can assess risk into every business for risk-free transactions. With data-driven business insights, the decision-making and monitoring period of the business has been improved, thereby everyone can receive estimates about the delivery of the products in real-time. Business can directly connect with clients eliminating the need of any third-party intermediaries or middle-men cost thereby reducing the cost of overall transactions.
Blockchain creates an environment of trust, transparency and accountability with its single version of the truth. With these state-of-the-art 360 business solutions, we have ensured our clients can achieve their full potential by being reducing their operational cost, improve their customer onboarding experience and promote enhanced due diligence with instant KYC verifications and AML regulations compliant. Supply chain management and logistics have a long way ahead with all their own sets of problems, however, we are optimistic that these advanced solutions can save them from the threat of money laundering, identity theft, and cross border financial terrorism. The complexity with huge data management with Big Data Analytics and IoT devices with automatically increase the necessity of Blockchain ecosystem, and competition across the industry verticals for sustainable revenue growth.
“Ecosystem of Blockchain connected advanced systems will be the defining factor of every successful modern supply chain and logistics business.”



