The promise of an incorruptible ledger for use in transportation management will reduce inefficiencies and create opportunities in supply chains.
With the potential of blockchain growing with the interest of software giants, like IBM, more supply chains are turning to blockchain & transportation management with open arms.
The Internet of Things (IoT), well known for its benefits in automating decision making, merges with blockchain seamlessly, but it requires systems capable of communicating.
Although the IoT enables machine-to-machine communication, systems still require a means of interpreting and applying data resulting in higher costs of implementation and delays in effective transportation management using new technologies.
Moreover, system authenticity problems, as explained by TMW, exist within today’s IoT-based platforms. Without a means to verify authenticity, machine-to-machine communication ceases, leading to lost opportunities.
Part of this problem is the result of disparate supply chain parties, which may be competitors, developing technologies independently. This is where blockchain may prove its value.
The prospects of blockchain & transportation management affect every aspect of the logistics industry, reports the Internet of Things Institute.
Blockchain technology works in conjunction with IoT-based systems to provide shipment data, catalog information, and guarantee information accuracy. Blockchain-powered smart contracts allow for enforcing of rules and enhance clarity in communications between parties, as well as machines.
This might seem like myriad benefits, but they combine to form a single, best-case outcome - better customer experiences.
Consider the Blockchain in Trucking Alliance (BiTA). BiTA is comprised of industry leaders and experts working together to make the convergence of IoT-based technologies, blockchain & transportation management platforms achieve verifiable, accelerated results.
Going back to the independence of technological development, blockchain acts as a resource for companies working on improving technologies and sharing information appropriately. This is one of the primary goals of the BiTA, and since blockchain rests on a foundation of trust, the data in blockchain is flawless.
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Blockchain technology has wide implications for improving transportation management, but as a new technology, it is difficult to understand how a ledger leads to benefits for the supply chain.
For reference, some of the top benefits of blockchain for transportation management include the following:
The pairing of blockchain & transportation management technologies will lead to greater adoption of the technology, alignment of business goals with actions, improved shipper-carrier relationships, as well as business-to-business sales, and reduce worry over competitive advantage between partners.
Blockchain is incorruptible, keeping supply chain leaders informed with accurate information. It’s a win-win for all parties involved, and the ability to bring systems together will help companies realize greater savings through increased equipment uptime, decreased maintenance, and ongoing process improvement.
Related Article: Recapturing Reverse Logistics Expenses Through Blockchain
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