Blockchain Tech is Evolving Supply Chain Efficiency
Last Updated Aug 2, 2023
It’s not easy to manage today’s busy supply chains. As a matter of fact, it can be downright hard. We all know that the daily operations involved in logistics and the movement of freight is complex, detail-oriented, and includes many moving parts. And that's putting it nicely.
However, one piece of technology that has found a home in the supply chain is the same that powers the safety and security of a rapidly expanding cryptocurrency market. Yes, we are talking about blockchain tech.
The blockchain is a technology initially developed by IBM. Part AI, part cloud-based, and part Superman... all workhorse. But essentially, it’s a technology that helps to expedite the process of communication, improves transparency, and keeps all parties honest.
While it’s mainly used in the financial sector, proactive software developers are beginning to implement creative strategies that improve paperwork control, provide better-integrated automation, and expedite the communication process between customers & suppliers. Hence, blockchain tech is fully compatible with many different types of logistics software platforms and powers many of them now.
There are several ways that blockchain technology is pushing the envelope of modern logistics. In this blog post, we will be talking about a few of the more prevalent ways it does this. We will explain what blockchain tech is, how it’s being used in logistics, and how logistics professionals can benefit from its integration.
What's the Skinny on Blockchain Tech?
Blockchain tech as a whole is ever-evolving and finding use in more roles throughout various industries with each passing year. In regards to the logistics industry specifically, blockchain technology shows dominance primarily in financial tasks.
For example, nearly 10 percent of all freight invoices contain significant errors, mainly based on erroneous information, or data that is not relative to the customer or shipment process. Invoicing errors are not only common, but they have also almost become the standard in recent years. While many shippers trust the expertise and efficiency of a 3PL to complete freight bill auditing on their behalf, some are finding the inclusion of blockchain tech as an exceptional additional proactive measure to reduce these all too frequent billing errors.
Another way that blockchain tech helps the logistics industry is through real-time tracking. With the help of the blockchain, tracking freight has never been easier or more transparent.
For example, thanks to the inclusion of blockchain technology, a customer or vendor can track a shipment from its initial sourcing, through every phase of movement, until it arrives at its destination. It’s able to send automatic updates to all supply chain partners, including manufacturers, distributors, shippers, customers, carriers, and federal or international safety agencies.
This type of transparency helps to reduce the number of errors and damaged freight. However, it also improves delivery speeds, improves communication and expedites many other supply chain tasks.
How is Blockchain Tech Helping the Supply Chain?
Blockchain technology is essentially a communications platform that improves the connectivity between supply chain partners and their clients and customers. It is secure, transparent, and is capable of being utilized in a large variety of ways.
ome of the more prominent ways blockchain tech helps the supply chain include:
Determining the source of damaged freight
With blockchain technology, shippers and carriers can track all touchpoints of freight movement. This is crucial when determining if there were unnecessary delays which may have resulted in the damage.
Tracking accurate financial records
Blockchain tech provides a level of transparency with all financial transactions. By integrating this technology with your freight bill processing solutions, all payments can be tracked in an open platform.
Reducing mistakes in freight bill processing
Additionally, blockchain technology can automatically review the information submitted to shippers from the carrier or other partners. This level of accuracy and transparency reduces commonly made invoice-related mistakes.
Redwood Logistics is a leading provider of advanced technological solutions. In fact, we are able to configure customized solutions for each of our clients. We are capable of doing so based on their budget, size, scope, and current needs. We’re working hard to stay ahead of emerging technologies in the logistics industry and are gearing up to work with blockchain technology as its place in logistics continues to develop.