Logistic potentials

Blockchain has many potential advantages in the logistic industry. It enables companies to increase efficiency (e.g. process automation, reduced paperwork, etc.), transparency and traceability, while also making supply chains more secure as the origin and authenticity of products is known, proven and shared.

Blockchain’s capacity to offer a new form of infrastructure and a new way to digitize assets through tokens is not easy to explain because it is an underlying technology, and all happens behind the scenes.

Currently, there is no industry standard for blockchain available. Instead the market offers very fragmented solutions. Thus, waiting for a solution to emerge for logistic functions may not be the right strategy.

Blockchain offers the potential to create value in logistics, however its implementation and use is not that straight forward, as we have highlighted. Given this situation and based on our experience from many technology-enabled transformations in operations, Shypr strongly suggests to lay the groundwork for blockchain technology. Organizations have to identify and understand the relevant applications and requirements for their logistics processes in the first place. Secondly, it is also critical to look at the potential use of blockchain in logistics in the overall context of supply chain development. In this way organizations ensure to be prepared for blockchain or any other emerging technology, as they all require the same foundation.