Blockchain in Logistics: 5 Real Use Cases
Blockchain is becoming more and more popular. Many different market fields are applying these solutions and customize them to their needs. Companies that decided to use that method are able to improve their processes on a bigger scale. Blockchains are nowadays known as one of the big trends in logistic technologies. Mostly because proper coordination is necessary for the logistics operation and thanks to blockchains ledgers and smart contracts it is much easier to achieve. Let’s focus on five applications of blockchains in logistics.
1. The efficiency of the shipping process
Shipping costs can be reduced even by 20% when you decide to apply the blockchain solution to the process. It will give them the possibility to track goods in a more efficient way and increase capacity. One of the companies which already decided to try that solution is one of the biggest operators of shipping containers in the world – Maersk. They applied that method to use blockchain to track their cargo remotely. That solution has obvious benefits like improving logistics and transport processes and reduces costs. Moreover, that method can also decrease errors during the processes and make a delivery time better – this is always a great result.
2. Inventory tracking
Blockchain solutions can help companies track their inventory in a more efficient way. It can be done as well on makro as well as micro-scale. Even now some of the biggest food retailers cooperate with IBM to build a solution that supports food tracking. Nestle and Walmart are already there. Advanced level of food tracking can be helpful for both companies and customers. For example, it can be the easiest way to track infected baches and quickly get rid of that stock to protect consumers.
3. Payments and invoices
It is really hard to find the most efficient and secure system for payments in logistics. However, there is one ideal blockchain solution for that matter – smart contract. This is very efficient and free from errors solution that gives both sides transparency of agreement. One of the worldwide credit card giants – Visa – has already implemented that solution. It helps them in B2B payments.
4. Time for quick settling disputes
Logistics companies very often have to face with dispute resolution. This is one of the biggest challenges in their work. Another big company on the market decided to use blockchain technology to improve the shipping process and decrease problematic disputes. It was FedEx. They made sure that the sender and receiver are aware of the delivery process during all the shipping time.
5. The need of 2020
Blockchain solutions have one big advantage over others – processes are transparent and safe. This is one of the needs and trends of technology strategics in 2020. Thanks to that method, companies can ensure that business information will be safe and trustworthy. It can also help them build trust between companies. One of the biggest coconuts importer – Provenance – decided to apply blockchain solution and now they can make sure that farmers and consumers know everything about their processes.