“Blockchain use cases for the logistics industry” – Content:
- Blockchain Logistic Use Cases
- Paperwork in the Transportation Sector
- Identifying Fake Products
- Simple Tracking
- Support of IoT devices
Blockchain Logistics Use Cases
In this article we will show the potential of blockchain technology. We will also show you which different use cases exist for the logistics and supply chain industry. Based on our analysis, four blockchain logistics use cases have been identified. These use cases are promising in the near future.
Paperwork in the Transportation Sector
International container transport brings with it a long list of documents. Someone has to processes them. For example, the shipment of goods from africa to europe requires the approval of around 30 persons. This results in over 250 tasks and dozens of documents. These do not only lead to enormous costs, but also carry the risk of fraud. The costs for processing trade-related documents are estimated at 15 percent and the costs for physical transport at 50 percent.
So to avoid this process inefficiency, blockchain solutions can be used to connect the vast global network of carriers, ports and customs authorities.
Identifying Fake Products
The origin of high-quality goods is often based on paper certificates, which can be forged or lost. When someone buys a diamond, they don’t know if it is real or if it has been stolen. Now, how can we ensure that everything is right?
With blockchain we can display each diamond as data points and identify them. We can then use these public records to determine that the seller is the actual owner.
Fake drugs are also a known problem in the medical field. With cancer drugs, for example, it is fatal if patients do not receive the right medicine. Blockchain could improve patient safety. We can create transparency in the supply chain from manufacturer to wholesaler, from pharmacies to individual patients. Barcodes or Auto-ID technology would allow patients to check if they have received the goods.
Blockchain can make it much more difficult in logistics and supply chain management to manipulate products or even sell illegal products.
It can often happen that bad food causes harm. So, it is usually difficult for companies to find out where the bad ingredients came from. It is also hard to figure out where the company stored them. Today, it can take weeks to find the cause of the bad food. As a result, consumer confidence in food safety, and in the company, can be severely damaged.
Blockchain can be used to complement the existing IT of supply chain partners. As a result, the systems can track food and other goods through a transparent, superior and independent ledger.
Support of IoT devices
The Internet of Things (IoT) are devices or sensors with which data can be sent over the Internet. However, today’s internet architecture is not equipped for this amount of devices and data. In addition, individual servers represent a single point of failure and thus increase data security.
Blockchain is a solution to securely connect and manage IoT devices. Since there are many IoT devices in logistics and supply chain management, this industry represents a promising use case. It could be possible to interact autonomously with other parties. We can use smart contracts to pay fees. As a result, processes could be improved and costs could be reduced.