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From our pen’s nib to giant earth scavenging vehicles, we all are nothing without our logistics industry. Talk about bringing our fresh veggies from farm to our plates or sending precious artwork to an art collector sitting on the other side of the world, the entire world runs on the logistics industry. But, have you ever imagined how the logistics industry has evolved over the years with technology? And how technologies like Blockchain bring some positive shifts in the logistics industry?

 

Let’s understand the logistics industry first. Logistics means to run the operation of moving the material from one point to another while meeting all the requirements of parties at both ends. This includes material handling, packaging, transportation, warehousing, insurance and security of the goods.

 

Evolution of the logistics industry with Technologies

Logistic industry isn’t a thing of yesterday. Since the inception of goods and services, production and distribution requirements of people around the world have picked up. The logistics industry is implementing technologies for ages. Not only modern vehicles and planning software, logistics industry infarct is one of the biggest consumers of high-end technologies.

 

Talk about using warehouse management systems, advanced vehicles & vehicle tracking systems, IoT with accurate RFID tracking, etc. are already in place to make it robust and secure. But, when we talk about relatively new technologies like Blockchain, Machine Learning and Artificial Intelligence; a lot of digital transformation is yet to happen here.

 

There are many applications there in the market, which includes multi-device warehouse apps, delivery & tracking applications, fare charge calculations, freight forwarding documentation apps and more. But, they all mostly work in different environments and a lot of human effort is needed to take advantage of the process.

How does the Logistic industry work?

In theory, the logistics industry between the two countries typically works in the following order:

Logistics industry flow
The Flow of Goods

 

Now, in this entire process, at every stage, a lot of documentation is needed. While each and every process is handled by different parties involved in it, discrepancies and change in the document or goods are quite possible. This leads to a lot of confusion in the system and therefore wastage of time and reduced transparency.

 

Then, how can a digital ledger, or Blockchain, save this?

 

Blockchain + Logistics Industry

Blockchain is a distributed ledger system that records transactions between nodes in a secure and permanent block. In layman’s terms, Blockchain is a digital ledger that shares databases between end-users and removes the dependencies of agencies working in between those gaps, where a breach is possible. As both the end-users have the power to validate the data, a complete end to end process is both trustworthy and reliable.

 

While Blockchain is leading us to a BFSI revolution by cutting the traditional cost of money transfers and ability to do micro transfers, in Logistics, Blockchain gives power to the consumers to make their buying decisions about the products they want to buy. Here are the benefits of Using Blockchain into the logistics system:

 

With blockchain, logistics contracts can implement smart contracts for each batch of their shipping goods. For example, if someone using logistical software and integrate a smart contract, they would be able to add access points where the data would get calibrated and checked by automated system checkers. If all the items are going good and system passes the test, smart contracts would validate it and let the further process go ahead including payments and handing over the goods to the user at the other end.

 

What Blockchain would bring to the table for logistics?

Efficiency

Not only the final supply chain, but Blockchain-based ledger would also be able to give all the data about insurance, brokerage, legal documentation and shipping services. Blockchain can be used to track the entire product life-cycle and goods’ ownership change from the supplying to receiving authorities. This not only increases the relationship between the supplier and the end participant.

 

Blockchain helps to trace all the legal and payment transactions within the process, which ultimately increase the efficiency of the system.

 

Transparency

Logistics is an integral part of the supply chain management systems, when we talk about the transparency, entire picture becomes bigger for every industry and end-user associated with it. Organizations across the globe are adopting blockchain technology in their supply chain system.

 

As blockchain is a digital ledger, it keeps track of every transaction taking place from the beginning of sourcing the items, manufacturing and shipping. The end-user would be able to track the flow and can analyse the data about the product they are purchasing.

 

Empowers modern businesses

Minor updates in manufacturing patterns, transport operators, warehousing agents, retailers and last-mile delivery, everything can be traced into the virtual ledger. This means, using Blockchain-based virtual currencies can be used for payment transactions across the countries.

 

With Blockchain, digital identities and tamper-proof documentation can be maintained. Which gives power to the digitally transformed businesses to take advantage of this technology.

 

Smart contracts

As we saw that there is a lot of manual documentation and process involved in handling logistics of the goods, a smart contract developed by Blockchain can come to the rescue. You can simply build smart contracts that would guide the entire process of handling payments, legal contracts & documentation with self-executing and authorizing processes.

 

They would be created by involving each stakeholder’s agreed rules and process stages to improve the entire process.

 

Security

Unlike traditional ledgers, Blockchain-based virtual ledgers would provide more security against any data breaches or involved parties would not be able to make any changes in the system.

 

Also, Blockchain allows single-point access to check the ledger, all the stakeholders would be able to see the transaction and processes. That increases security and transparency!

 

So, overall, already a technically focused industry getting even better by implementing blockchain is a win-win situation for everyone. Also, if the logistic industry works well, all the end users would benefit out of it. For a broader impact, Blockchain adoption is the way to go.

14 thoughts on “Blockchain for Logistic Industry

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    Understanding COSC Accreditation and Its Importance in Watchmaking
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    En Son Dönemsel En Büyük Popüler Kumarhane Platformu: Casibom

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  4. 로드스탁과 레버리지 방식의 스탁: 투자 전략의 새로운 영역

    로드스탁을 통해 공급하는 레버리지 방식의 스탁은 주식 시장의 투자법의 한 방식으로, 상당한 이익율을 목표로 하는 투자자들을 위해 매력적인 옵션입니다. 레버리지를 이용하는 이 방법은 투자자가 자신의 자금을 넘어서는 투자금을 투자할 수 있도록 함으로써, 주식 장에서 더 큰 작용을 가질 수 있는 기회를 공급합니다.

    레버리지 스탁의 원리
    레버리지 스탁은 원칙적으로 자본을 차입하여 운용하는 방법입니다. 사례를 들어, 100만 원의 자금으로 1,000만 원 상당의 증권을 구매할 수 있는데, 이는 투자자들이 기본적인 자본보다 훨씬 더욱 많은 주식을 사들여, 증권 가격이 증가할 경우 해당하는 더욱 큰 수익을 획득할 수 있게 됩니다. 그렇지만, 주식 가격이 하락할 경우에는 그 손해 또한 커질 수 있으므로, 레버리지 사용을 사용할 때는 신중해야 합니다.

    투자 계획과 레버리지 사용
    레버리지 사용은 특히 성장 가능성이 높은 사업체에 적용할 때 유용합니다. 이러한 기업에 높은 비율로 적용하면, 잘 될 경우 상당한 수입을 얻을 수 있지만, 반대 경우의 경우 큰 위험성도 짊어져야 합니다. 그러므로, 투자하는 사람은 자신의 위험성 관리 능력과 시장 분석을 통해 통해, 어떤 사업체에 얼마만큼의 투자금을 투자할지 결정하게 됩니다 합니다.

    레버리지 사용의 이점과 위험 요소
    레버리지 스탁은 높은 이익을 제공하지만, 그만큼 큰 위험성 수반합니다. 증권 시장의 변화는 예측이 힘들기 때문에, 레버리지를 이용할 때는 늘 시장 동향을 세심하게 살펴보고, 손해를 최소로 줄일 수 있는 계획을 세워야 합니다.

    최종적으로: 신중한 결정이 필요
    로드스탁에서 제공된 레버리지 스탁은 막강한 투자 도구이며, 적당히 활용하면 많은 수입을 가져다줄 수 있습니다. 하지만 높은 위험성도 신경 써야 하며, 투자 결정이 필요한 정보와 조심스러운 판단 후에 이루어져야 합니다. 투자자 본인의 금융 상황, 리스크 감수 능력, 그리고 시장의 상황을 반영한 조화로운 투자 전략이 중요하며.

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