Blockchain Success cases: Supply Chain and Logistics

The biggest players in the game have started to realize that blockchain technology’s ability to record transactions between parties in a permanent and secure way could have multiple uses in logistics. With 90% of world trade carried out by the international shipping industry annually, achieving new efficiencies in trade logistics could have huge implications on the global economy.

The Potential of Blockchain in Trade Logistics

According to the World Economic Forum, reducing supply chain barriers could increase global GDP by nearly 5% and global trade by 15%. Blockchain technologies could address many global trade logistics issues, including procurement, transportation management, track and trace, customs collaboration, and trade finance. By using blockchain, companies can optimize both costs and time for trade documentation and administrative processing.

Maersk and IBM Collaboration: A Game Changer

In collaboration with IBM, Maersk, the world’s largest container shipping company, has started a venture to streamline ocean freight using a blockchain system to track international cargo in real-time. This blockchain-based system helps digitize workflows and allows each stakeholder in the supply chain to follow the progress of goods throughout transit. The system also ensures secure data exchange and a tamper-proof repository for customs documents and other crucial data.

ZIM’s Digital Bill of Lading: A Pilot Program

Israeli container shipping company ZIM has piloted the digitization of the bill of lading, a critical shipping document that contains information about product destination, description, and billing. In collaboration with Wave Ltd, ZIM issued, transferred, and received bills of lading via a blockchain system, which could help eliminate inefficiencies in freight documentation. The adoption of this digital system could reduce supply chain costs, improve accuracy, and speed up the transfer of original documents.

Blockchain at the Port of Rotterdam: Improving Cargo Tracking

The Port of Rotterdam and CargoLedger have partnered to implement a blockchain solution for tracking shiploads. The blockchain technology records and processes data from labeled loads, allowing immediate insight into the conditions of the cargo. This innovation improves quality control in supply chains and establishes a secure, transparent system for managing and handling shipments.

Blockchain in Consumer Goods and Retail

Blockchain has the potential to enhance supply chain transparency and monitor provenance in the consumer goods and retail industries. Many companies are adopting blockchain to track product origins, ensuring legitimacy for pharmaceutical shipments and authenticity for luxury goods. This technology also benefits consumers by providing more information about product sourcing and ethical standards.

Walmart’s Blockchain Pilots for Supply Chain Transparency

Retail giant Walmart, in cooperation with IBM, is working on blockchain pilots to enhance supply chain transparency and track goods more efficiently. Blockchain helps Walmart track food contamination sources quickly, as seen during a romaine lettuce contamination incident. Additionally, the blockchain system records the temperature of food during transit, ensuring better control over food quality and conditions.

Alibaba: A Pioneer in Blockchain Adoption

Chinese giant Alibaba has adopted blockchain to tackle food fraud, secure medical data, and track cross-border shipments. Through its subsidiary Lynx International, Alibaba integrated blockchain to track information in its logistics operations, creating an immutable record of shipment details from production to third-party verification. For a logistics company like Lynx, blockchain provides unmatched security and transparency.

From shipping giants like Maersk to retail leaders like Walmart and Alibaba, blockchain is revolutionizing global logistics, enhancing transparency, efficiency, and security across supply chains.