Five Efficient Blockchain Solutions in Logistics
Nowadays, blockchain is gaining global popularity as numerous businesses start to implement this technology. Fintech, healthcare, automotive, and telecommunications are just a few industries that profit from using blockchain-based apps. Logistics is also among them. In this article, we’ll review five efficient blockchain-based solutions that help logistics companies and other supply chain participants arrange seamless processes.
The benefits of blockchain for logistics
As more and more traders, shippers, carriers, and other stakeholders join global supply chains, logistics is becoming more complex. Due to this, transparency and visibility of the supply chain are now crucial as never before. Blockchain can successfully address these issues as it allows quick and secure sharing of information, excludes the risk of forgery, and builds trust between stakeholders.
Logistics is an area where a successful collaboration of multiple parties is essential. You cannot perform all the tasks on your own and thus must trust your business partners. However, with manual processes, the risk of making mistakes is relatively high. That is why companies are trying to digitalize processes, reduce or completely get rid of paperwork, and thus build a new efficient model of work.
One of the most important issues in the supply chain is sharing information. A customer might want to know where their order is located at a specific moment, a logistics company needs to know whether the goods shipped are stored securely, etc. Blockchain makes it possible to create a secure shared database where each participant has access to important information stored in separate blocks, in a decentralized manner. However, it cannot be faked or stolen: to carry out a transaction, a user needs to get the consent of 51% of network participants. A consensus and smart contracts regulate everything.
Such an enhanced level of security makes blockchain a perfect solution to numerous logistics problems. It ensures end-to-end transparency, increases visibility, and prevents companies from fraud and theft. With its help, it is easy to monitor the performance of this or that participant, increase the level of automation, and reduce the cost of transactions. Another important advantage is the automation of processes which reduces human error and cuts burdensome manual work.
Let’s take a look at 5 efficient solutions that take blockchain technology in logistics to the next level.
BC Platform for freight booking
This blockchain-based platform for freight booking was developed by Andersen, a European logistics software development company. Among its key features are automation of monotonous workflows, bottleneck detection, and optimization of business processes. The platform uses the potential of AI and transforms the way logistics professionals manage processes and deal with multi-enterprise data.
The information about each shipped container is recorded, encrypted, and shared in a public ledger system. Each operation is thoroughly analyzed, all transactions are verified and transparent, and the supply chain is visible and traceable due to smart contracts. BC platform also includes a secure communication channel. Each party including end-users has access to the information on containers’ whereabouts; thus, it is easy to monitor goods in the supply chain in real time and estimate when they will arrive at their destination.
The implementation of the platform had a positive impact on the customer’s business. The speed of booking and shipping increased by 45%. As a result, the client spends 15 minutes less on each freight booking than they used to do before.
Source: andersenlab.com
dexFreight network
This decentralized logistics platform runs on blockchain and facilitates the collaboration of supply chain participants. Shippers, carriers, and end-users carry out transactions transparently and securely.
In addition to being powered by blockchain, dexFreight integrates such cutting-edge technologies as AI and IoT, and legacy systems. This growing network is open and convenient to use. Currently, it unites 1,400 carriers, 932 brokers, 507 shippers, and approximately 28 thousand trucks. All operations from booking to payment are carried out in one place. Businesses can automate logistics workflow by negotiating online, booking loads with thousands of carriers, shippers, and brokers, and real-time tracking of goods. The system allows users to find the best matching loads and the right vehicles depending on their availability and location at this or that moment. Transactions are secured by smart contracts.
dexFreight innovative platform and its performance have won the acclaim of numerous businesses that managed to reduce operation time, lower costs, and gain profit. In 2022, the company received a prestigious FreghtTech Award.
Cello Trust supply chain traceability platform
The Cello Trust platform uses the advantages of Samsung’s DSD blockchain technology to make the supply chain traceable and transparent for its participants. Cello Trust can be integrated with other digital systems and blockchain apps whenever a business needs it, and the information is securely protected at all stages. All this ensures fast and accurate delivery.
The platform deals with a large amount of data, and the participants can securely share it. It is stored in an encrypted form and provided according to the demands of a specific industry (high-tech, healthcare, wine, luxury goods, agriculture, fishery, and others). Consensus nodes of a blockchain involve certificate authorities, NGOs, and public institutions. Cello Trust allows users to prove the origin of products and their shipping status with the help of IoT devices tracking goods and get details concerning their shipping status and conditions (humidity, temperature, etc.).
The system runs not only on PCs but on mobile devices as well. You only need to scan a QR code to see the product information and the details of the entire supply chain process.
Cargo Release by OOCL Logistics
Another logistics solution was created by OOCL Logistics. Cargo Release is a blockchain-powered system developed in collaboration with Global Shipping Business Network (GSBN). The application is extremely helpful for businesses that need to automate their processes and get rid of burdensome paperwork. The PODIUM® system makes it possible to share all documents and information about the cargo’s whereabouts between all the participants of the supply chain. As a result, documentation exchange takes hours instead of days, the processes are considerably simplified, and it is possible to avoid extra costs.
SUMEC took part in the piloting of this system and was the first to benefit from it.
Cargo Release is aimed to help freight forwarders digitalize processes and thus enhance global supply chains. This fully corresponds to the present-day demand as logistics companies seek to embrace blockchain innovation.
TradeLens ecosystem
Recently, IBM and GTD Solution Inc. have developed TradeLens, an open and neutral blockchain-based solution. With its help, logistics companies across the world can improve global trade and share information securely. The platform keeps on growing and increasing its capacities, which proves its efficiency. It has its customer advisory board whose members are responsible for promoting the platform in the digital market and its expansion.
TradeLens unites freight forwarders, traders, terminals, customs, and other parties in an ecosystem where they collaborate and seamlessly share trade documents, IoT sensor data, cargo details, whereabouts, etc. in real time. Due to automation, business processes are successful, and all the documentation is securely protected. There is no need for excessive paperwork as bills of lading are issued and shared electronically. Thus, the documents can neither be forged nor lost.
This blockchain solution promotes interoperability and encourages fruitful cooperation. Third parties can develop and deploy apps on TradeLens.
Source: tradelens.com
Conclusion
Blockchain-based logistics solutions considerably improve the supply chain, increase its transparency, and allow all its participants to carry out their tasks securely. Nowadays, businesses pay more and more attention to such software and cooperate with leading logistics software development companies that can build cutting-edge solutions.
