We’re at the second month of 2018 and every industry is already talking big about this year. High aspirations, coupled with upward trending growth of the Indian economy is driving lots of businesses, especially in logistics, to major decisions.
One of the first viral trends to clip on to this content heavy world is of course, the meteoric rise of cryptocurrency and its poster child, Bitcoin. However one of the technologies actually driving this phenomenon has stayed out of the spotlight. Blockchain is a term you may have heard from very few experts around the world, but if you have, you’ll know it has a far more global impact on business and it’s future around the world. It’s a technology that’s literally changing the world and logistics is one of the first industries to truly recognise this potential. Before we get into the actual relationship of these two, let’s first clarify what is blockchain. In simple words, it’s a shared ledger/database, in the form of blocks, that records every transaction ever made, covering essentially anything of value. It started as a tool to record cryptocurrencies, but it’s efficient management has led to it’s potential of application possible in virtually any industry. On the offset, it probably sounds like a glorified database management system, but here’s why it makes a lot of sense in today’s business scenario:
– It’s decentralised: Working on a peer-to-peer network creates virtually no margin for error as there is no single point of access, thus no single point of failure that can crash the whole system.
– It’s secured through cryptography: This means that every block is linked and secured with cryptography, thus making data modifications impossible. As every transaction is recorded as is, fraudulent activities become impossible in this system.
These are just two of the many advantages of using blockchain. Seeing this, we can obviously note how such a system can be applied to practically any industry, and logistics particularly stands to gain a lot from this technology. Factoring the current capabilities of blockchain, real world applications are more of an immediate execution than a distant reality.
– Asset management
Any asset in logistics goes through multiple transports, affecting performance parameters across a limited time period. This creates an endless log of data, which often goes unrecorded thus creating possibilities of unsubstantiated reports and invoices of repair that have no real evidence to justify that cost. Blockchain enables precise recording of this data through synergised hardware solutions, thus creating genuine transparency and allowing owners to optimise their asset management services.
– Service Enhancement
The power of blockchain, coupled with electronic logging devices exponentially increases the data and insight capabilities of transport. Relaying continuous, unhindered information to the teams on every transport allows them to dynamically optimise their routes, timings and coordination, thus creating a seamless transport experience and delivering containers on time.
The ultimate challenge of logistics lies in it’s handling of the payment between parties involved. From quote determination to invoice management, payments has been riddled with mismanagement and ambiguity, creating many small, arbitrary expenses that pile up and cause substantial losses to firms with every consignment. A well recorded transaction trail enabled by blockchain creates a transparent invoicing system and even allows logistics firms to utilise the data to determine appropriate rates for shipments.
Needless to say, a technology that was born out of serving an unstable currency, has quickly evolved into it’s own legacy innovation. One that drives true innovation through a system that’s something as basic and essential as recording accurate data. We at Pridel are continuously investing efforts to understand, map and eventually execute these technologies to our suite of solutions and ensure our clients and partners stay ahead of the curve and move forward, always!