How will blockchain be used in supply chain logistics

How will blockchain be used in supply chain logistics? | Zmodal

Blockchain technology is one of the most talked-about emerging technologies, with numerous applications across various industries. Can it modernize the fragmented and inefficient logistics industry?

[Music]

Blockchain's Impact on Logistics

Blockchain technology is predicted to have a massive impact across many industries, including logistics. While it is best known for its role behind cryptocurrencies like Bitcoin, the technology is widely applicable to numerous problems in many industries.

Supply chains are becoming increasingly complex, involving numerous players that require many contracts, payments, tracking, and communication processes. Blockchain technology is expected to help better connect the many players and handoffs within the industry, bringing efficiency to the many disjointed elements in any specific supply chain.

What is Blockchain?

Broadly speaking, blockchain technology describes a distributed, highly secure platform, ledger, or database where value—everything from money, stocks, bonds, intellectual property, deeds, music, and even votes—can be stored and exchanged without powerful intermediaries.

In the logistics industry, blockchain will likely be used as a distributed ledger to provide better transparency throughout the shipment's lifetime. Blockchain data is decentralized and cannot be changed once created, creating a more secure and transparent information pathway that follows a shipment from origin to destination.

Due to this decentralization, it is unlikely that the system could be disrupted due to a localized failure or attack. The implications could mean quicker processes, lower transactional costs, and more secure and reliable data exchange within the industry.

Standardization through Blockchain in Transport Alliance

However, for this adoption to happen, a unified set of standards needs to be established across the industry. This is where the Blockchain and Transport Alliance (BiTA) comes in. BiTA is a forum for promotion, education, and encouragement to develop and adopt blockchain technologies in the trucking, transportation, and logistics industry.

BiTA's goal is for its members to participate, discuss, create, and adopt industry-standard uses of blockchain applications and to provide clarity and direction for the development of blockchain technology in the transportation industry in a manner that promotes efficiency, transparency, and trust. BiTA standards are intended to create a common framework to help organizations develop and adopt blockchain technology.

Major industry players, including DHL, JB Hunt, BNSF, Maersk, and many others, are collaborating to craft a set of standards that will enable the deployment of blockchain within the industry.

Over the next several years, we will likely see the industry's adoption of blockchain and its application to various processes within logistics.

If you want to learn how new technology can make your supply chain more efficient or would like us to help you optimize your logistics plan, let us know.

Thank you for reading. Subscribe and like if you enjoyed this article. More content is coming soon.

[Music]

Keywords

Blockchain technology
Logistics industry
Supply Chain
Transparency
Blockchain and Transport Alliance (BiTA)
Distributed Ledger
Decentralization
Industry Standards

FAQ

Q1: How does blockchain improve transparency in logistics?

A1: Blockchain provides a decentralized, unchangeable ledger that tracks the entire lifespan of a shipment, resulting in more secure and transparent information pathways.

Q2: What are the benefits of using blockchain in logistics?

A2: Benefits include quicker processes, lower transactional costs, and more secure and reliable data exchange, along with resilience against localized failures or attacks.

Q3: What is the Blockchain and Transport Alliance (BiTA)?

A3: BiTA is a forum that promotes the development and adoption of blockchain technologies in the trucking, transportation, and logistics industry, aiming to create unified industry standards.

Q4: Which major companies are involved in the Blockchain and Transport Alliance?

A4: Major companies involved include DHL, JB Hunt, BNSF, and Maersk, among others.

Q5: When can we expect to see widespread adoption of blockchain in logistics?

A5: Over the next several years, the industry is expected to adopt blockchain for various logistical processes, as standards continue to be developed and implemented.