Top 5 Global Logistics Challenges in 2018
Global logistics are hard to manage due to the lack of transparency in the supply chain. While technology has progressed in recent years, many companies still only receive data about the transport of their goods days or even weeks after their goods were delivered at the final destination.
Just consolidating all this data after the fact is a cumbersome task and resolving any issues within the supply chain is nearly impossible as it’s hard to pinpoint exactly where and when something went wrong.
Below are the top 5 global logistics challenges companies face. After describing these pain points we will explain how UCOT a new supply chain IoT blockchain based ecosystem can solve these problems.
1. Counterfeiting
Counterfeiting can take on different forms. Counterfeiters misappropriate someone else’s brand, falsely label products, or use fake or inferior components to make a product. Lack of consumer confidence in the provenance of goods can really hurt a manufacturer’s ability to sell their products. This is particularly a concern for companies selling their products in Asia, where counterfeiting is widespread and consumer confidence is low.
Counterfeiting is also an issue that is becoming worse each year as ordering goods on the internet is increasingly becoming the new norm. This encourages a lot of counterfeiters to enter the arena and sell fake products, which in turn leads to further decreased consumer confidence.
2. Theft of goods
There are many people handling goods in transit and only one of them needs to have ulterior motives for theft to become a big issue. In the current supply chain it’s very easy for someone to sign a form saying they’ve handed over 100 boxes, whereas the real amount was only 99 as they kept one themselves.
For manufacturers it is very difficult to figure out where theft may have occurred as information about the shipment of their goods is usually only available days or weeks after (most of) their products have already arrived at their end destination.
3. Lack of accurate data on shipping conditions
Many products need to be transported within pre-set environmental conditions, such as within certain temperature parameters. As there is no way for manufacturers to see shipping conditions in real time, some logistics companies falsify the information on how they’ve shipped certain goods.
A shipping company may turn off the fridge or freezer straight after leaving a port to save costs and turn them back on closer to the end destination. When the conditions are checked at that end point, the temperature may well be within the right parameters again but the quality of the products will have been affected already as the temperature parameters were not met throughout the entire journey.
4. Manual processes
A lot of manual processes take place at each handover. Paperwork needs to be filled out and signed or barcodes scanned manually. This information then needs to be fed back to the original manufacturer. Very often this information often doesn’t make its way back to the manufacturer for days or weeks which leads to significant delays and extra hours spent consolidating this data.
5. Lack of shipment updates for end customers
E-commerce is becoming more popular each year due to the increased use of internet. A lot of the products bought online come from overseas and it can take days if not weeks to arrive. The end customer wants to be updated or be able to track the shipment of their goods themselves, but accurate data is simply not available.
As a result, many brands simply tell their customers that the shipment will take between 7 and 14 days.
UCOT is the solution to current global logistics challenges
UCOT is set to revolutionize the supply chain over the next few years. It will enable manufacturers to optimize their logistics and supply chain, while giving their customers the confidence that they’re receiving the real product and that is has been shipped to them in the best possible conditions.
Thanks to UCOT manufacturers now have access to a system that can verify a product has not been compromised in any way on its journey from a manufacturing facility to a customer. This tamper proof process will maintain the integrity of your product giving customers the confidence to buy your brand knowing they are receiving the original product and that it has been delivered to them in optimum storage conditions and that it hasn’t been tampered with or exposed to environmental factors that could potentially alter the effectiveness of a product.
How Does UCOT Work?
Installing UCOT’s NB-IoT devices in objects such as in parcels, trucks and containers, can help monitor data such as temperature, humidity, pressure, location, and light. The collected data will be uploaded to the cloud in real time and synchronized to the blockchain. Node data queries can be performed at the terminal via the UCOT development website.
These NB-IoT devices are compatible with most carrier’s LTE[1] networks, including local carriers Telstra and Vodafone.
Each UCOT IoT device has its own long-life battery (lasting multiple years). They communicate with the Internet, recording information from the product/pallet which is then stored on a blockchain. Storing the information gathered on a blockchain ensures it cannot be altered once it is recorded.
NB-IoT technology has the advantages of low power consumption, low cost, wide coverage and supports a huge number of simultaneous connections. It is supported on the existing cellular networks of major operators. Sensing information is uploaded to the blockchain periodically through these NB-IoT connections.
A UCOT IoT device can be attached to, or inserted in, a product’s packaging or can be placed in a larger box containing a number of products tagged with NFC labels. The NFC labels on each product can communicate to the IoT device and the IoT device can track and record all information in real time and register it to a blockchain for the manufacturer to be able to see what’s happening in their supply chain.
The IoT device can be programmed to set off alarms if the agreed specifications and standards attached to the shipment of the product have not been met. This means that the entire shipment history of a product can be traced from factory to end consumer, without the need for any third parties to scan barcodes or fill out forms manually.
Manufacturers don’t have to rely on third party data anymore to see in what conditions their products were shipped. UCOT can report back on environmental conditions such as temperature, humidity and pressure in real time and send alerts if certain parameters are not met at any point in the supply chain.
Smart contracts on the UCOT platform can eliminate a lot of the manual processes that currently take place at each handover of their goods. Barcodes don’t have to be scanned manually anymore, payments can be automated when the products arrive at a destination in the right conditions, and insurance contracts can be automatically enforced should there be any issues.
UCOT is set to revolutionize the supply chain over the next few years. It will enable manufacturers to optimize their logistics and supply chains, while giving their customers the confidence that they’re receiving the real product and that is has been shipped to them in the best possible condition.
The end consumer can also check whether they’re receiving the real item and that it wasn’t tampered with by simply scanning the product at point of purchase. This will help brands create a closer relationship with their customers and generate increased confidence.
For Sales Enquiries contact UCOT’s Sales Director Mike Verhoeven on +61 403 491 144 or mike.verhoeven@ucot.world.
ℹ️ Interested in owning some UCOT? Buy $UCT now via OKEx
↗️ Link: Sydney Blockchain Center
❤️ Don’t forget to visit, like and share:
Website, Telegram, Facebook, Twitter, LinkedIn
🔍 Search by article tag:
Blockchain, Supply Chain, Crypto, Cryptocurrency, Weekly Report
