Blockchain has opened the doors for transportation and logistics organizations to integrate this advanced technology to enjoy the advantages it holds ensuring secure, authentic data stored inside the blocks. Blockchain gets along with the evolution in consumer expectations and preference concerning the delivery time and costs providing transportation and logistics industries the ability to yield highly effective services.
The organization needs to realize how much importance blockchain holds in the transportation and logistics industries. Take a look below to unveil how blockchain is transforming the transportation and logistics businesses.
- Making Load Boards More Reliable
Transportation companies are attentive to the load board as it contains data that can either be muddled or duplicated providing unreliable information. By using blockchain, shippers are allowed to use time stamp posting functionality that is further verified by the blockchain’s decentralization. Using this powerful functionality, data will maintain the integrity and hence wouldn’t duplicate per particular load. No middlemen involvement would be needed as blockchain itself loads the data, authenticates it, prevents duplications and makes stored data visible to the load boards. Thus, blockchain has made the load board more reliable with the information loading along with the time stamping and storage in a decentralized network.
- Smart Contracts Removes Middlemen Involvement
One of the most impact features introduced by Blockchain to the transportation industry is the use of Smart Contracts. Smart contracts are executed automatically, coded through blockchain techniques, and only enforces when a certain condition is met. Just like a company wants its payment released when the item reaches the specified destination, then the smart contract will automatically pay for the shipment once the item arrives at the location. Supply chains should get over the paper-based systems and use this latest technology to overcome the fraudulent activities faced by the companies. Blockchain smart contract eliminates third party involvement and removes the steps required by other administrations that ultimately reduces the costs and possibility of error occurrence.
- Enhance Liquidity In Supply Chain
Blockchain introduced an advanced Sweetbridge technology that handles supply chain based issues if the process lacks anything. The objectives of this technology focus on solving existing problems related to the trucking and freight industry such as supply chain operations, supply chain liquidity, and supply chain flexibility. It makes the agreement made between the parties stronger and reliable throughout the supply chain. The major issue the transportation industry faces today is the payment agreement between parties that result in huge disputes on a daily basis. By using Sweetbridge for the settlement purpose, transportation companies can reduce borrowing costs. Increase liquidity and can even make more profit.
- Data Transparency, Visibility & Accountability
Blockchain has a strong storage mechanism that records accurate and tampers proof data. This technology ensures a single version transaction even if multiple stakeholders are involved. The complex logistics networks available today consists of conflicting interest that dramatically reduces lead times. It costs due to the human error as well with the delays arising and damages it has to face. Industry-wide adoption of blockchain-enabled systems would ultimately reduce costs, faster transfer of documents, and enabling error-free documentation. Huge companies like Walmart have started using blockchain systems to trace the origin of food products and transit conditions within the journey of a product from farm to store. It adds value to the company’s operations reducing the potential losses due to the product’s contamination.
- Improving Audit & Tracking
The transaction history is stored within a block, thus auditors find it easy to understand the resources and items. The verification of each transaction and checking process has also made simpler with the implementation of blockchain. This powerful technology offers an instant solution to verify and track orders making it highly accessible. In the food industry, there was a serious need to record and track each product or item from its source to destination. Blockchain records each product’s source containing the information of its processing, storing, and sell-by-date. A renowned diamond giant company uses this technology to even track stones from mine authenticating diamond’s natural creation and ethical sourcing. Basic logo design help providers can utilize blockchain-based systems to provide proof for the legitimacy of their products.
It holds data related to each vehicle and the driver’s information so that a second-hand vehicle purchase can provide the previous maintenance information about it. It improves the efficiency of settlement made between the parties throughout the supply chain. Blockchain offers transparency, visibility, and accountability of data by improving the audibility and traceability of the transportation and logistics operations.