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Exploring the Potential of Blockchain Technology in Logistics Industry

Blockchain technology in Logistics Industry

Logistics is one of the most important elements of every industry. Logistics deal with the implementation and organization of the transportation of goods from the place of origin to consumption. The Logistics industry is huge and one of the most complex ones. Goods costing almost 218 bn USD have been imported in a month in the USA alone!

Blockchain technology is a decentralized network where peers can communicate and transact without a need for the central authority. Due to its immutable and transparent nature, Blockchain provides an array of benefits to various industries.

Blockchain in logistics

Blockchain in logistics helps the industry to solve the challenges and inefficiencies. Every element of logistics has tons of options to deal with. Brokers, shippers, and other stakeholders focus majorly on efficiency rather than choosing the right and best option. In addition to that, the documentation process involved is very cumbersome. This adds more inefficiency and slows the end-to-end transportation process.

Blockchain can help to fragment all the complex processes so that supply chain and logistics become more efficient. In order to simplify the process, Blockchain technology is needed to be integrated into the backbone of the logistics. From recording transactions to tracking assets, Blockchain can help to create a transparent and efficient system.

Recognizing the potential of Blockchain in logistics: Use cases

1. Improved shipping process

When Blockchain is integrated into the logistics industry, the first and foremost thing to be targeted would be shipping and freight. In addition, the technology can help target the delivery process internationally and locally. This would also improve the capacity of the goods that can improve efficiency.

Many logistic industries have already incorporated Blockchain into their processes and operations. The end goal of integrating Blockchain technology is to track the shipment in the best possible way possible by working with the authorities.

2. Better Transparency

One of the key features of the Blockchain is transparency. If implemented in the correct ways, this feature helps bring transparency to the logistics industry. This helps to build credibility and reduce malfunctions. Apart from the final consumers, B2B businesses also implode due to the reduction in costs and conflicts.

The Blockchain-enabled platforms would allow easy coordination between stakeholders for the shared documents. This ensures that trustworthy data is shared across the ledger and hence a secure and transparent network is built.

3. Inventory tracking

Tracking inventory is a complex process. Organizations spend a huge amount of fortune in order to make it efficient. According to a recent study, a simple refrigerated shipment passed through 30 different organizations. A single hiccup in this supply chain can cause the container to be upheld or lost.

Blockchain technology helps to overcome this challenge by offering the organizations to handle the products at the macro and micro levels. In addition to keeping track of shipments, and creating an immutable and traceable supply chain, Blockchain also ensures that the quality of shipment is also maintained. If any mishandling is recorded, the source of the same can also be easily traced.

4. Settling disputes

The cargo industry suffers from a lot of disputes. Each year, approximately $140 billion are tied up with disputes for payments in the logistics and transportation industry. This means more resource expenditure from the organization.

Blockchain technology can help to resolve these disputes faster with the help of immutable and real-time tracking information of the shipment. With the help of automation, many disputes can be handled within minutes and can be backed by trustable data.

5. Invoicing and payments

Blockchain technology can help to improve the invoicing and payment system by building an efficient and secure system. For an average invoice, a company has to wait for more than 42 days before receiving the payment. Due to the high processing times, many businesses have millions of dollars tied up in their accounts.

By using smart contracts, customs clearance and approvals can be made quicker, and hence reducing the processing time for goods as well as payments. Organizations can use smart contracts to automate the entire process and reduce the gaps for errors.

Conclusion

As the logistics industry morphs and adapts to accommodate the dynamic consumer needs and expectations, it becomes important to integrate new technologies that can change the face of the industry, in this case, the commercial transportation industry.

At the time, the main challenges in the logistics industry range from lack of transparency to problems in communication and settling disputes. In order to overcome these challenges, Blockchain technology provides us solutions such as real-time tracking of shipment, smart contracts, better supply chains, and much more.

Are you also looking for sustainable Blockchain solutions for supply chain logistics? We are here to help. Debut Infotech is one of the most reputed Blockchain app development organizations. Hire our Blockchain developers to build efficient and robust Blockchain solutions.

Connect with us now to know more.

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A full-service digital product development company that leverages Blockchain, AI, and other cutting-edge technologies to develop world-class solutions.

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Harpreet Singh

Harpreet Singh

A pioneer in Mobile, Blockchain, Managed Services, Oracle, and AI/ML Development

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