Revolutionizing Supply Chains: With Blockchain Technology and Logistics

For anyone who has read anything about technology in the last couple of years, the words reliability and resilience sound synonymous with the concept of blockchain.

To demonstrate how this combination makes sense, here are some arguments explaining why blockchain and modern logistics technology could revolutionize supply chains as we know them.

1. Trust as a bottleneck

One of the biggest challenges in modern logistics is checks and balances. You see, the old supply chain was based primarily on trust, and Trust has been the biggest obstacle in this industry.

You had to trust your drivers to behave properly on the road, and one of the biggest scourges of the industry was that drivers often profited from fuel. All they had to do was misreport how much fuel they needed and then siphon off and sell the rest. It was quite profitable for the drivers, but it also put you in a position where, as a business, you were taking on a lot of avoidable losses.

This is no longer the case. First of all, modern fleet management systems provide more than just supervision: they literally analyze the driving behavior and fuel consumption of the vehicle in real time. In other words, there are no false reports, since reporting is no longer the responsibility of these drivers.

Reporting is, in general, fully automated with these new systems and with the right fleet work order templateeverything is more systemic and reliable. Also, the system now runs on a blockchain, which means that the files cannot be tampered with.

In a way, blockchain technology helps create a environment without trust in logistics industryThis does not mean that there will be no trust; it means creating a environment where trust is not necessary (you can do without it).

Now, the whole process is automatic; everything is transparent and most importantly, every report is completely reliable. Everything is as reported.

Not only is it a great safeguard, but it also plays on the psychology of all participants. People are much more honest when they know they will get caught if they try something.

2. Go electric fleets

Another major change is the introduction of electric fleets. This change brings much greater innovation in logistics technology than one might assume at first glance.

First of all, electric vehicles have reached their peak, and one of the aspects that is advancing the fastest is their software. The best example of this is the Fortescue Elysia Battery Intelligencewhich represents a qualitative leap in battery software.

These apps are much more accurate in estimating the performance and energy consumption of electric vehicles and help significantly increase fleet maintenance and efficiency.

With greater accuracy and greater understanding, you will finally be able to solve what is considered the biggest problem of electric vehicles:autonomy anxietyKnowing exactly how far you can travel on a charged battery will make it easier to trust your fleet.

A challenge and technological innovation that is worth addressing even when it comes to electric fleets is the use of planning software. That is, charging is always a problem because while refueling takes minutes, charging will take hours. That is why creating a proper charging schedule may be one of the most important tasks of a modern fleet manager.

Ultimately, from understand the health and condition of your battery better, you will have an easier time programming the optimal charge. In this way, you will prolong the useful life and performance of the battery, which translates into a much better net result.

Remember, planning and maintenance all translate into the efficiency of your supply chain and logistics. With the right software and software integrationsyou can make everything much simpler.

3. Supply Chain Finance

Your supply chain exists only in the broader context of your business, meaning every delivery is closely interconnected with a specific financial process. Blockchain technology can drastically reduce the risk of fraud. This is especially important for stakeholders who want the greatest possible transparency. In this way, the blockchain ecosystem has the potential to revolutionize finance as we know it.

Secondly, it is important that you address the risk of sharing transactions in real time between all parties involved. With blockchain, all information is available in real time, so there is no need to engage in a lengthy data verification process.

From reducing the need for additional bureaucracy and paperworkThese blockchain-based supply chains will have a simpler structure with dramatically reduced operating costs. Many of these processes will be self-executing (something we’ll address in the next section), which will also make the processes faster. Even outside of cost savings, speed is the name of the game in the supply chain industry.

While all these benefits sound pretty impressive, the difference they are making can best be seen in scenarios with cross-border transactions. International trade is the backbone of the modern global economy, but it is also slow and interrupted by bureaucracy. With the help of blockchain-based supply chains, this process can be dramatically accelerated.

THE decentralization of the supply chain system It seemed like something that would interrupt it, even slow it down, but with the help of blockchain technology, it doesn’t have to be that way anymore. If the model is well structured and the algorithm is right, automating the process should be quite simple.

4. Smart contracts

While smart contracts They predate blockchain technology, the truth is that this technological trend has brought them to a whole new level.

The very concept of smart contracts means that you have to pre-set conditions, and when the conditions are met, the contract is executed. The problem is that many supply chain managers feared the potential exploitation of these conditions. Since the contracts were self-executing, the process would be irreversible and you wouldn’t even notice that something was wrong until it was too late.

Fortunately, with the help of blockchain technology, these fears have finally been put to rest. Now, you will find yourself with an incredible standalone tool you can trust.

You see, the big problem with blockchain is not only in its armored technical properties. It’s also about the fact that it has won the battle of perception. People trust blockchain. There are other tools out there that are almost as trustworthy, but they are not perceived as impenetrable, and it is this caution that is slowing the rate of adoption.

Another factor worth noting when discussing supply chain is the ability to track the location of the shipment in real time. With blockchain, this will be possible and completely reliable. This type of transparency is unprecedented, but it is no longer seen as a bonus feature; it is an industry requirement.

Finally, blockchain is a tool and an algorithm, which means that it fits incredibly well. It doesn’t matter how many processes it runs. As long as the configuration is correct, there should be no problems.

5. Data sharing and collaboration

In an early segment, we talked about the risk of drivers stealing fuel and taking detours, but they aren’t the only ones who can cause trouble and commit corporate theft. Unscrupulous fleet managers and even business owners looking to cheat their shareholders could engage in similarly malicious behavior.

With the help of blockchain technology, there is a decentralized and distributed ledgerwhich means that all parties involved have full awareness of what is happening at that moment. It offers full transparency and, since there is no central authority, there is no one with their hands on the levers of power. In other words, everything is transparent and, even if it were not, no one would be responsible for the mechanism that would allow them to manipulate the system.

It’s not just about transparency; it’s also traceability which makes all the difference. The data cannot be tampered with later and everything done to the registry leaves a permanent digital footprint. In other words, the diagnoses are quite conclusive and reliable.

What most improves collaboration capabilities is the fact that Blockchain operates on standardized data formats and protocols. This means it can be used easily across all organizations and teams. Integrating with other tools is also quite easy, even integrating with existing systems.

As mentioned above, the concept of scalability is part of the very nature of blockchain. However, one of its greatest advantages is the fact that the system works consistently regardless of the number of requests.

6. Blockchain increases supply chain transparency and consistency

Ultimately, blockchain can make supply chains more transparent and completely eliminate the incredible need for trust to operate in this space. The best part of all of this is that blockchain technology improves every single part of the chain. Through a series of subtle (and not so subtle) improvements, the supply chain sector will grow as a whole.

About the author: Srdjan Gombar

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