Blockchain technology has become a game changer in the logistics and transportation business these days. It garnered the prominence due to the cryptocurrencies like Bitcoin. Apart from the finance, it has so many uses in other industries too about which people aren’t much aware of.
So many people out there are comparing it to the World Wide Web because of its great importance and Blockchain technology really has the potential to change the world.
One of the most prominent industries in which Blockchain technology can show huge impact is logistics. Logistics and supply chain has become very important and there are many processes that are involved in this industry, so using the blockchain technology may make the supply chain management and automation easy and accurate. Most of the people do not know how impactful the blockchain is when it comes to logistics field.
Logistics is a field that requires huge paperwork and a lot of staff to keep up but this paperwork may lead to some of the great errors too. But by implementing the blockchain technology, one can change everything in the supply chain. Keep reading the article to know about the
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Blockchain in logistics automation.
What is Blockchain Technology?
Blockchain technology is nothing but a system which helps in recording the transactions. It is similar to a paper in which the entire details are written. The best part of this blockchain is once a transaction is entered, there is no way that it is deleted as the transaction in one block is related to the transaction in another one and altering one block of the chain may affect the entire blockchain. So the change or deletion of a transaction from the block is completely impossible.
This way the data is stored in this blockchain permanently and cannot be tampered under any circumstances. Blockchain maintains certain transparency and cannot be controlled by anyone. It is a decentralized technology where there is no need of validation for a particular transaction, hence eliminating any type of fraud that happens within the system. If a transaction holds a particular value, then it can be recorded in the blockchain and it is not restricted to the money.
Winnesota explains in this infographic on how blockchain technology will improve the world of transportation and logistics which makes companies more efficient and profitable!
Blockchain in Logistics Automation
Logistics is usually considered as the lifeblood of the whole world. 90% of the trade in the world is possible because of logistics. The undeniable fact is that logistics is very complex. There are so many things that one has to take care of while they are in the supply chain management. One single mistake in the document can cause a huge damage. So most of the advanced thinking supply chains have already understood the importance of blockchain technology and has implemented blockchain in logistics automation.
There are many
benefits of implementing the blockchain technology in the supply chain management.
Here are a few of them
1. Reducing the Human Error
Documentation, maintaining the records is very important in logistics. There are so many problems that a supply chain face when they are transporting goods from one place to another and a minor human error can cost them a fortune. By implementing the blockchain technology, every transaction and record is stored with utmost perfection and the chance for error is approximately zero thus reducing the costs on the supply chain.
2. Sharing the Information
It becomes very tough to share the required information among all the parties that are involved in the shipping. But with the help of blockchain, the required information regarding the shipping can be seen by all the parties in real time.
Supply chains are very complex systems and there are so many aspets other than the movement of goods. The present supply chain and logistics system is suffering with improper flow of information, purchase orders, documents and the invoices. The logistics industry is spread across the world and a small miscommunication can led to some disastrous situations. There are so many scenarios when the goods are missed due to this improper communication. All the transactions and documents that are uploaded in blockchains can neither be deleted nor modified. The owner can provide access for some specific members to access the document and all the transactions are recorded perfectly. In the blockchain technology, all the important assets are given separate numbers which will help in tracking them easily.
In blockchain technology, if any transaction is modified the technology first looks at the history of the transaction and its balance too. If the balance didn’t match the history of transaction, then the blockchain will not accept that particular transaction. The blockchain technology is highly accountable and it makes sure that the data that is present in it is perfect and up to date. This is a highly required feature for the logistics and supply chain management.
The transparency in the blockchain is the main reason for its security. The blockchain system is open and has been managed by the peers. The blockchain is designed in a way that it resists any modifications of the documents present in it and the access to even read the document is provided for some people only or even for no one except the writer of the document. As security of data is the highest priority in the supply chain and logistics management, the entire logistics industry is happy with the security provided by blockchain technology.
These are some of the improvements that are made in the logistics automation because of blockchain technology. It is smarter move to opt the blockchain technology in the supply chain management as a lot of errors and stress will be reduced.
So many renowned and giant logistics and supply chain management organizations are adapting this blockchain technology in order to make their operations better and easier. The companies are focusing on the benefits that are offered by the blockchain for their business and hence they are making moves towards incorporating it. The blockchain technology in logistics automation has the capability of changing the face of entire industry.