What impact does blockchain have on the supply chain?

The international supply chain consists of many stages. It stretches in space for hundreds of thousands of kilometers across the planet. Cargo transportation is managed by a huge number of logisticians. They have to deal with mountains of documentation. Logistic processes often take weeks. Blockchain in logistics is an opportunity to simplify complex delivery. It minimizes non-transparent work patterns.

What is blockchain

Technology strongly influences economic and business processes. They completely change the established opinion about trading processes. And here is the interaction of all market participants.

The development of new entrepreneurial models has led to the need for technology that can provide transparency and security in logistics processes. Blockchain is an “internet book”. It is available to all players in the logistics industry that allows you to store important data.

The key advantage of this technology is that the base cannot be faked. For example, using blockchain technology in logistics, it is possible to track the stages of delivery from the manufacturer to the end consumer. Each contract or payment is recorded. It added to the database as a new fragment in the form of a digital number. The code stores the following information:

  •  Date.
  •  Time.
  •  The amount of the performed operation.
  •  Data about the entire network.

The data is transmitted in the form of a chain of blocks. Each of them contains up-to-date information about the previous fragment.

Application of blockchain technology in supply chains

Every year more and more participants in the logistics sector strive to improve the quality of cargo transportation. Global IT companies are promoting the blockchain platform to make logistics more transparent.

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Why is this needed? The introduction of a single, open information platform will enable transportation and many other organizations around the world to innovate in their business processes.

Transparency and reliability of the supply chain

The application of the project will help to improve the efficiency of inventory management. it ensures the safety of the transported goods. This is especially important for the end user. With the help of the program, you can get access to complete information. These are type, shelf life, location, etc. parameters. It’s about any consignments that are entered into the database, literally in one or two minutes.

Blockchain in the logistics industry improves the security of supply by ensuring process transparency. Through innovation, discrepancies in documents can be avoided. For example, the carrier of the cargo and the recipient understand the time of arrival of the consignment differently. The blockchain supply chain in air delivery of goods (or any other) avoids misunderstandings. Since everyone involved in the supply chain has access to the necessary information. They see the same accompanying documentation.

Acceleration of the logistics process

The international delivery process is complicated by the low level of interaction between officials, logistics and forwarding organizations. The situation is aggravated by customs issues and paperwork.

The use of a unified system will solve the problem of the duration of deliveries. The technology helps to speed up order processing and shorten delivery times for international cargo. Thanks to the innovative platform, the speed of interaction of absolutely all participants increases. This makes it possible to carry out cargo transportation several times faster.

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The main advantages of bockchain include:

  •  Reducing the cost of logistics.
  •  Impossibility to falsify data.
  •  Elimination of unnecessary intermediaries.
  •  Fraud prevention.
  •  Reducing the time spent on document circulation

The use of blockchain in transport logistics is a promising area. It makes it possible to increase the efficiency of international deliveries. It minimizes risks. And it reduces costs. Through the platform, you can improve the reliability and transparency of deliveries. And you can avoid discrepancies in documents.