Why Blockchain Solutions Should be in Your Plans for 2020
Last Updated Aug 2, 2023
The end of 2019 is here and companies are wrapping up their budgets, performing year in review reports and setting financial goals for 2020.
One section that always makes the planning list of just about any modern company is technology. After all, innovative software is what drives most, if not all, modern businesses. And while the role of tech in the industry for those that operate a supply chain, software becomes quite significantly more critical.
Potential upgrades to existing software or the integration of more recent innovations are usually included and highlighted in future planning.
At the forefront of these software solutions is blockchain technology. Yes, the same type of platform that is used to manage cryptocurrency and lend better transparency to individual transactions.
But what is the outlook on the logistics blockchain going into 2020? How can this technology help to improve transparency among shippers, manufacturers, carriers and ultimately, the customer?
In this blog post, we’ll go over a few of the important trends and most helpful solutions that the blockchain offers to get a better idea of how the logistics blockchain will look going into 2020.
Improving Transparency with New Blockchain Technology
Customers demand openness and transparency when it comes to the movement of products they purchase.
While most logistics companies use big data to gather information, provide metrics, and arm them with valuable information. Integrating IT solutions backed with blockchain technology is a quick and reliable solution to increase supply chain visibility.
Blockchain transactions provide what is essentially a traceable footprint.
This footprint clearly outlines the roles and responsibilities of each member of a supply chain and how they carry out said roles. Carriers realize the importance of updating their tracking records, distributors and manufacturers better understand the scope of their role with packaging and storage, and customers can review each through a fully secure platform.
In other words, through a blockchain system, it is easier to see how all the different parts are moving around.
Expanding Payment Processing
Blockchain technology was created to provide enhanced scrutiny and security for online financial transactions in a market with little to no regulations. The same security and transparency can be utilized to enhance the payment gateway processing of the supply chain movement. It helps to provide factual data on payment details, verifies that payment details and assets are accurately represented, and notifies all parties of pending payments, deposits, and other transaction details.
As more consumers actively choose retailers or e-commerce partners with improved and safer payment processes, the need for this type of solution in order to capture or earn business is a vital trend for 2020 supply chain partners to consider.
Expanding Access to Appropriate Stakeholders
A typical supply chain movement from China to the United States involves up to 100 or more individual touchpoints. This includes any time the items are handled, whether during picking, packing or transport.
During transport, each phase or checkpoint can likewise be monitored with blockchain solutions.
However, in order to view all of this movement, all supply chain partners must have access to the same blockchain platforms. This is usually just not practical for all parties.
The solution to this common problem is an agnostic blockchain platform. It’s a solution that permits connectivity to relevant information. This permits openness and transparency but also protects private information or proprietary data from being disclosed to unauthorized participants of the supply chain movement.
Union with the Internet of Things
Lastly, one of the benefits of blockchain solutions is the flexibility of integration with the Internet of Things or IoT technology.
Partnering the two helps to reduce multiple data entry points, duplication of records, and virtually eliminates human errors. It helps to improve all-around automation, removing the need for a constant manual update on each individual task.
Let Redwood Logistics Help Integrate Your Blockchain Solutions for 2020
Blockchain solutions have been in existence for several years now. However, each year, technology improves, as do the solutions offered specifically for the logistics industry.
As we roll into 2020, those who are actively involved in the supply chain movement should consider how blockchain technology can fill gaps missing in their logistics program.
An exceptional resource for supply chain partners to learn more about the blockchain and how it can improve their operations is a professional 3PL such as Redwood Logistics.
Here at Redwood, we have worked with blockchain software developers for several years, helping them fine-tune their technology to specifically improve supply chain visibility and transparency. Through our 30+ years of experience in the logistics world, we are able to provide logistics blockchain solutions that are aimed at addressing all of the problems found in typical industry tasks.