The Potential Of Blockchain In The Logistics Industry
The hype surrounding the blockchain technology might start to die down next year but it is also the time when industries realize the great potential that the technology has brought forward. This will impact the logistics industry as believed by a transportation equipment specialist who thinks that the technology was not executed properly when it comes to logistics operation.
Henk Mulder, the department head of the digital cargo in IATA, said that the current uses of blockchain technology are proof of how it is utilized incorrectly. For instance, the companies IBM and Maersk are using the tech just for simple tool system to track their documents.
While these companies claim that the technology is working, it is not possible to be true when they haven’t even solved their problems with using paper for their documents.
Mr. Mulder has an experience in banking and he used to work with the European Organisation for Nuclear Research. He admitted that when he applied in aviation and was assigned in the cargo department, it was lagging in technology by three decades.
According to him, the rise of the blockchain technology is similar to that of 3D printing. The hype circulating the ledger tech is sudden but will eventually settle down after a year. He explained that this is ideal in order for the real characteristics of the tech to shine out rather than be overshadowed with too much excitement.
Mr Mulder said that the blockchain technology will help the logistics industry determine the chain of ownership, value as well as custody. It will be an advantage for smart contracts and process of payment but it will not be utilized for quality tracking or physical tracking.
When blockchain technology is used for chain custody, it will be easier in tracking VAT payments which are often a big part of the losses. The money earned will be helpful in covering the health service in the United Kingdom. Logistics is big in physical processes therefore a transportation equipment specialist said that blockchain cannot be used in physical tracking and quality tracking too.