If you believe the speakers at this year’s BVL Logistics Congress, then the logistics industry has long been in the digital paradise. You can see that this is not the case when you look into practice. 60 percent of invoices are sent around the world in paper form. This is not only expensive and time-consuming, but also susceptible to counterfeiting. Even the business models of many forwarders are still based on analogous lack of transparency, instead of relying on digital progress. Even the business models of many forwarders are still based on analogous lack of transparency, They apply and experiment themselves.
That’s why we thought we’d ask the question: “Can Blockchain lead the logistics industry out of the digital Stone Age? Or not?” The consumer uprising will also promote the blockchain in the logistics industry in the long term. We are seeing more and more that people attach importance to the fact that in their supply chain, is managed sustainably, but people are not exploited either. On the other hand, the issue of health and food safety is an important factor. The Fipronil scandal was problematic for many consumers and the pressure on companies is increasing. The problem with the status quo: Companies often do not know which sources their suppliers have, and where they get their goods from.
Also the suppliers often attach importance to it, that it remains intransparent so that prices can be kept as high as possible. One solution could be Smart Contracts based on blockchains. By documenting WHERE, WHEN, WHAT exactly in “blocks”. This means that I can always prove to my end customers that everything is built on a clean supply chain. Of course, the current working practices in the logistics industry speak against this. Many suppliers have business models that are based on the fact that they are not transparent. That you don’t know exactly where they get their goods from. Good for the suppliers: they can increase the price because they can always say so: “Cost a little more, took a little longer.” Blockchain would make this radically transparent. The biggest problem in the status quo is that many processes in the logistics industry still take place analogously. Blockchain is a technology that is based on digitization one can only use Blockchains if the processes are digitally mapped. This is a problem that has to be solved first. On the other hand, it is of course a big cost for companies. You can save a lot of money by using Blockchain. On the one hand, intermediaries can simply be omitted, which of course is not good for intermediaries, but for everyone else, because the price then drops. On the other hand, however, costs can also be saved by no longer having data centres centrally located which of course saves a lot of money in personnel and material. In the future, data will be stored decentrally in the block chain. Which we must not forget, You can reduce delays by connecting Blockchain to IOT, by analyzing where the goods are at the moment, who has them at the moment.
All this can also be done using Smart Contracts and Blockchain technology. Which we must not forget,
and this is my last argument against: Especially for many producers there are barriers to entry. If we look at the logistics industry, we see that many products are sourced from third world countries and emerging markets. It is easy to upload photos of products and production halls into the blockchain, that is, into a block that is then further transferred. Nevertheless, these countries often lack the basic understanding of how digital processes work. And often infrastructures such as Internet connections or simply knowledge are missing how to use the technology properly.
Unfortunately, knowledge is often not available. In my estimation, Blockchain will therefore primarily occupy the industrial nations over the next few years, which are digitalized so far that they can also use the technology. If you want to join in the discussion and are still interested, then come simply to our webinar on 20.11.17 once at 11.00 o’clock and 14.00 o’clock We listen to the experts Mr. Soysal on Blockchain.
He knows his way around and you can ask him your questions. Thank you very much for your attention.
See you next time!