A successful transaction has as one of its characteristics that purchases made by customers got to them safely and in good time too.
This is what logistics takes care of, more aptly put, it involves the planning, transportation, coordination, and management of goods and services across locations.
Globally, the logistics industry is thriving as it facilitates trade and commerce. In recent times, the logistics industry has been impacted by various innovations which seek to make the industry more efficient.
Of these innovations, blockchain technology has the potential to revolutionize logistics as we know it.
Blockchain is decentralized and information stored in it cannot be easily tampered with.
These are two features of the technology that makes it stand out. Trust is a big issue in the logistics industry, with blockchain there is enhanced trust and security.
From secure payments to storing customers’ data, they will prevent theft, fraud, and impersonation, which has plagued the logistics industry.
With the above, there is improved transparency in their activities and enhanced compliance with the stipulated mode of operations, as no corners are cut.
In addition to this, the use of blockchain reduces cost as verification is done by technology, thereby eliminating verification, and intermediaries and as well streamlining the entire process.
There are several other ways blockchain is revolutionizing logistics, there is increased efficiency through automation.
The technology can be used to set up automation of processes like inventory management, this will save time and reduce errors.
Also, blockchain would improve supply chain management and increase supply chain visibility, this enables the real-time monitoring of goods and services as they are transported to their location.
With this, logistics companies can identify any challenges in their supply chain and effect combative measures to salvage such situations immediately.
Not only that, the environmental impact of the goods and services in the supply chain, as well as
the impact of the transportation medium can be tracked too.
This helps the logistics industry monitor their carbon footprint and develop or adopt measures that support environmental sustainability.
Certain roadblocks might be encountered while implementing blockchain technology, however, overcoming these challenges and adopting the technology would greatly increase the success rate of the industry.
An example of these roadblocks is the regulatory challenges, which in fact are the biggest challenges as the technology is still evolving and the regulations do not cater to these innovations, also the regulations vary from location to location.
This can be quite tasking to try to comply with all these regulations. Another important challenge is the adoption of smaller logistics organizations, which are a very important arm of the logistics industry.
This would affect collaboration and in cases where they adopt blockchain solutions, they are so different due to the organization’s budget, and the aim of interoperability is defeated.
These roadblocks are surmountable with the efforts of the government, technology providers, industry players, and logistics organizations.
Intentional working toward eliminating these roadblocks would help the adoption of blockchain in the logistics industry.
Increasing awareness around the technology and the potential benefits to the industry is a good start.
Proper sensitization and education will drive the adoption, thereby enabling the industry to leverage blockchain to innovate and improve.
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