Benefits of Blockchain for Logistics Industry

Blockchain Logistics Industry or Courier services around the world are an integration of several subsystems underneath.

Often big players (like FedEx, DTDC, Bluedart) have to partner with local couriers to complete delivery of packages successfully. Paperwork, misplaced packages and increased delivery time are some of the consequences that take place due to these fragmented systems. All this results in a higher price being paid by the consumer and reduced bottom lines for these mass courier services.

So, how can Blockchain help?

Blockchain, as a technology, involves the following:

  1. A distributed ledger with each party having their own copy
  2. A consensus mechanism between all involved stakeholders
  3. Immutability of transactions thereby, making it tamper-proof
  4. Ease of identity verification via the use of digital signatures

By utilizing Blockchain for logistics, all of these can come quite handy for the courier industry:

Imagine a system where FedEx runs several nodes (one for each of its vendors). Every time a package moves, it is recorded as a transaction in an immutable ledger that is signed by FedEx and the vendor, thus, building consensus and establishing trust. Each package can also be tracked through an IoT device. Moreover, all of this can be automated with minimal manual intervention via Blockchain for logistics services.

Final result? Real-time tracking of packages, faster delivery, happy customers,  increased profit, and no more paperwork. All this can come true by utilizing the technology of Blockchain for logistics.

In fact, the promise that Blockchain provides is now being recognized by most of these major players. USPS last year announced their intentions.

The Singapore government has also partnered with a startup Blockchain firm (FreshTurf) to build a Blockchain based solution on top of IBM bluemix to be used as delivery lockers throughout the country:

Similarly, the Australian and Canadian postal services also have expressed their interest in utilizing the services of Blockchain Logistics Industry.

With the implementation of Blockchain Logistics Industry, several possibilities can start emerging soon