Recently, I had the opportunity to participate in a roundtable discussion, hosted by the German American Chambers of Commerce, relating to Blockchain technology and its potential use in the logistics industry and supply chain.
Did you know there are over 30 touch points on a container that is shipped overseas? That is 30+ opportunities for a mistake to be made or 30+ opportunities for a security breach. This is why blockchains are such a hot commodity in our industry at this time.
Below, I outline some potential advantages to blockchains. Although these are still yet to be proven, other industry experts also have identified these potential capabilities of blockchains in the supply chain.
Blockchains Can Provide: Immutability
Because of the nature of the technology, blockchains are exceptionally difficult to alter and are redundant. The information in the chain can be maintained in many different servers at different locations around the world, rather than in one, single, server. This alternative way of maintaining information, provides enhanced security of information and reduces the chance for mistakes.
Blockchains Can Provide: Visibility
Having a blockchain in place could assist with business forecasting and business planning. Currently, supply chains are very difficult to predict, but, with a block chain in place, it would be less complicated to see the history of a supply chain and provide a more efficient way of planning for future business needs.
Blockchains Can Provide: Cost Reduction
Blockchains can also be used to validate contracts, thus eliminating the need for invoices and providing a more efficient means of collecting payments. In addition, managing unpaid invoices would be easier leading to a reduction in lost revenue.
Blockchains Can Provide: Safety
Blockchains can be used to better manage equipment because through a blockchain, a company can determine if a piece of equipment should be serviced before its scheduled maintenance, based on the use of the equipment by tracking it through the blockchain. Thus, reducing the potential for equipment failure and loss of work time.
Blockchains Can Provide: Efficiency in Hiring
Using blockchain technology, a company can validate potential employee or contractor information more efficiently and promptly, while also vastly speeds up the onboarding process.
Blockchains Can Provide: More Efficient Movements
Although at Gulf Winds, we provide our customers with a complete container management systemÂ called gwiTrackÂ® that tracks shipments from origin to destination,Â and provides detailed monitoring, tracking and management tools. We see blockchain technology as the next evolution to offering our customers the best, proactive, and efficient services possible and look forward to partnering with them on future initiatives.
Although there seems to be endless opportunities for blockchains, just like any other ânewâ technology, we suggest a disciplined and strategic approach in picking the most valuable and efficient opportunities for you and your company.
For more information contact: Dustin Hebrank, Chief Financial Officer, DHebrank@gwii.com