Adoption Of Bitcoin Technology In The Logistics Industry

The logistics industry is constantly changing which increases the demand for specialist in logistics to ensure success in the competitive market. Essential resources that include trained, skilled and competent staff including modern equipment and transportation are particularly important in the logistical distribution network.

One of the latest technologies being adopted by logistics and supply chain industry is Blockchain. In 2018, it was reported that several companies are considering Blockchain technology to simplify the delivery process and make the supply chain more traceable. It is expected that Blockchain technology will be adopted by other players in the industry particularly since South Korean electronics giant Samsung and Wal-Mart, one of the world’s largest retailer have announced adoption of the technology.

The movement of a product between a company and its suppliers up to the delivery of the product to the customer is quite complex. In today’s globalized world, the supply chain has become more complicated because of the number of players. Payments between vendors, suppliers and customers including other involved parties usually take days to be processed because contracts have to be reviewed by lawyers and banks and easily cause delays and additional costs.

It is also difficult to trace a certain cargo that passes from one geographical destination to another before it finally reaches its destination. If documents are lost or forged, it would be difficult to trace the actual origin of the product. If Blockchain technology will be used by the logistics industry, full transparency can be realized when dealing with supply chain that involves hundreds of geographical locations and checkpoints.

More importantly, Blockchain technology can dramatically decrease the need for paperwork. It will make it easier to track accountability for deliveries at every handover. Maersk, the world’s largest shipping company has completed initial tests of a Blockchain-based system to manage its cargo.

In order to be a specialist in logistics, it is important to understand long-term relationships and partnerships with customers. It is also important to consider continuous innovations, efficient business practices and creative solutions to strengthen the partnerships and exceed all their expectations. Companies are in constant competitive battle but being innovative,it is very easy to win the battle.