It can be argued that blockchain technology can potentially revolutionize the transport and logistics industry. Many transportations and logistics companies alike have already begun to adopt and implement these solutions. Moreover, it seems to be the way forward for many industries. Also, it has been suggested; due to the initial implementation of blockchain technology in the transport supply chain, it can potentially save millions of dollars annually. Thus, it brings us to the aim of this blog: what is the role of blockchain technology in the refrigeration transportation supply industry?
How is blockchain technology impacting the refrigerated transportation supply chain?
Before we jump straight into the role, we want to put forward some statistics. As noted, some large transportation industries, have already started to implement blockchain technology into their business. Forbes, released an Insight Survey late last year, in which over 400 senior executives from the transportation industry participated.
The results demonstrated that 65% of the executives felt that the transportation, logistics, and supply chain industry, is experiencing “nothing short of a tectonic shift.”
Now, this quote “tectonic shift” seems to be happening in many of the larger industries, which require real-time records to ensure growth and efficiency. Although there are many contributors to this innovative revolution, blockchain seems to be ahead, along with Artificial Intelligence (AI) and Machine Learning (ML).
What is the role of blockchain technology in the refrigeration transportation supply industry?
In essence, blockchain technology is arguably an advantageous solution for the generation of real-time, accurate and secure records. If the ideal solution is met, then it can be applied to allow all those involved in the supply chain to associate/receive accurate, efficient documentation for various reasons. Therefore, one of the primary roles of blockchain technology is to provide transparency.
Transparency – due to the advent of blockchain technology to have a clear picture of the entire supply chain. Moreover, this transparency can help to reduce costs, by limiting the number of errors for all transactions and processes. It can be said, that the advocates for blockchain technologies believe that it has the potential to revolutionize the entire transportation and supply chain industry.
Two main problems blockchain technology can potentially address in the refrigerated transportation supply industry.
Problems occur in all areas of the transportation and supply chain, not just the refrigeration sector. It can be argued that most shipping and freight supplier is continuously looking for innovative solutions to reduce these problems. However, those in the driving seat of blockchain technology development, believe that this unique solution has the potential to irradicate errors entirely. So, we thought that it would make sense, to demonstrate two of the main issues that blockchain has the potential to resolve.
1. Disputed Payments: On average, a transportation company has to wait at least 42 days before an invoice is paid. Reportedly, 140 billion dollars are actually held up in the transportation industry due to the disputed payment. Whereas, using blockchain technology, it limits the number of errors. Thus reducing the number of disputes.
2. Reduce Processing/Admin Costs: Reportedly, as high as 20% of costs in the transportation occurs because of over-reliance on the paper/human recording. Whereas, blockchain technology essentially cuts out the “middle man,” and everything is recorded in real-time. Thus, reducing costs and errors.
The Bottom Line
It can be argued that blockchain technology in the refrigerated transport supply chain seems to be inevitable. Although it is only in the initial stages, the potential does seem to be highly beneficial in the long term.
