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We are living in the digital age. As a result, you can get access to many new and exciting technologies. Blockchain technology is another new technology that is becoming quite popular, particularly in supply chain businesses.
Because blockchain is a decentralized, immutable ledger, it guarantees safe, open transactions without the need for middlemen.
Several benefits it can offer to supply chains such as:
- Enhances transparency
- Reduces fraud and counterfeiting
- Improves product traceability from origin to destination
- Offering a robust solution to common logistical challenges
DAC.Digital is one of the well-known companies in the Europe, engaged in AI and software development, and has developed a blockchain solution which can tackle the significant costs related to the loss and theft of RTI (Returnable Transport Items) in logistics.
Benefits of Blockchain in the logistics industry
The following are a few benefits of blockchain in the logistic industries:
1) Transparency of the supply chain
Businesses can adopt this new technology to obtain more transparency in their operation, as you can track the data on real-time basis, particularly if you are involved in supply chain business.
Whether you are a manufacturer, carrier, supplier or even customer, you can easily track your cargo. This can tell you exact information about:
- Cargo location
- Delivery times
- Product condition.
By making data publicly accessible and immutable, blockchain prevents tampering and protects against dishonest practices.
2) Building a higher level of customer trust
Building on the previous advantage, enhanced transparency fosters greater customer trust. Customers can verify the manufacturing details and authenticity of products, ensuring sellers are honest.
This boosts your market reputation and attracts new customers, strengthening your business’s credibility and appeal.
3) Speed up shipping and reduce costs
Blockchain technology can streamline and expedite the handling of delivery-related documents, such as waybills, shipping documents, and customs declarations.
This reduces delays and shortens delivery times. Additionally, it lowers administrative costs by simplifying document verification and confirmation processes.
Indeed, entrepreneurs often allocate 10-15% of their budgets to maintaining corporate documentation. Implementing blockchain can lead to significant cost savings and economic benefits by reducing these expenses.
Its greatest advantage lies in its immutable data, which enhances transparency for consumers and protects businesses from fraud and dishonest partners.
A few disadvantages
Regarding the drawbacks of implementing blockchain, there are very few exceptions:
- Scalability problems with the system can arise, particularly when there are a lot of transactions.
- If the traffic is too heavy and you have a lot of data to process, then maintaining a blockchain infrastructure can be quite expensive.
- You will need very complex processing, which may consume more electricity if you want to maintain the security and reliability of your network.
Final Thoughts
Blockchain technology in logistics has the potential to save billions of dollars by eliminating the need for standardized documentation, in addition to streamlining operations.
Technology makes transparency possible, and this is essential for partner cooperation and customer happiness. Furthermore, it ensures dependable data security.
Businesses are already utilizing blockchain effectively in their operations, spearheaded by Microsoft, showcasing the technology’s enormous potential.
This can serve as motivation for different companies to follow the global trend and advance their development with this technology.
