Bringing transparency to the supply chain
Bringing transparency to the supply chain08 november 2017
Blockchain is a 'fundamental technology’ that is set to disrupt the logistics and maritime industries in the next 5 to 10 years - that was the message of a thought-provoking masterclass taking place on the first day of Europort 2017.
"Blockchain is a digital ledger managed by a distributed network that uses cryptography so that users can securely update it without the need of any central third party,” explained Alex Bausch, co-chairman of the Blockchain Ecosystem Network (BECON). Therefore, blockchain can enhance security, reduce costs, improve business interactions and ultimately create efficient business networks.
The application of blockchains in the logistics industry is only natural. However, "While companies are already using blockchain to track items through complex supply chains, the rate of adoption is still quite low and can only be improved by stakeholder ecosystems,” Mr Bausch suggested.
Smartlog, a proof of concept project for IoT blockchain solution in the logistics industry, was presented by Mikka Lammi, Head of IoT business development of Kouvola Innovation Ltd., who reflected on how IoT and blockchain technology will revolutionise the industry. Funded by the European Union’s Interreg Central Baltic program, and in partnership with logistics companies in the Baltic region, Smartlog aims to reduce cargo transit times within the TEN-T network corridors in the Baltic through the application of blockchain technology.
The need to create and communicate the right information to improve flow in the logistics sector was the focus of a case study presented by Frank Herman, Head of Sales Engagement for IoT and Emerging Business at Ericsson. "The use of open data, IoT and blockchains can help enhance transparency in the logistics sector as well as create secure information for the whole logistics sector, while reducing human errors,” he said.
"The application of blockchains in the logistics sector will prepare the ground for new sources of revenue and new business modules’, added Jody Cleworth, CEO of Marine Transport International, concluding a thought-provoking case study on the use of blockchain in the container freight sector.