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What are the 4 effects and 2 challenges of using blockchain for logistics?

Blockchain technology is a technology that attracts attention from all over the world. Blockchain technology is expected to be used in all fields, and the logistics industry is one of the fields where such expectations can be expected.

I would like to introduce four effects and two challenges of introducing blockchain technology to the logistics industry.

Three Possibilities of Blockchain Technology for the Logistics Industry

Blockchain technology is not only a virtual currency but a technology that is attracting attention from all over the world. It is said that this blockchain technology will have a great impact on the logistics industry, but what is the reason for this?

I would like to briefly explain the three possibilities that the introduction of blockchain technology will bring to the logistics industry.

The rationality of the blockchain management system

By introducing blockchain technology into the logistics industry, it is possible to streamline operations efficiently in various situations. Several vendors intervene before packages reach consumers, and information is managed by each vendor. If you try to find out such information, it will take a lot of time and human resources.

By introducing blockchain technology, it becomes possible to record such information on the blockchain, making it easier to manage information.

The high tracking ability of blockchain

In a blockchain, information is recorded for each block, and that information is linked chronologically like a chain, making it extremely difficult to tamper with. By introducing blockchain technology into the logistics industry, it is possible to check the information in chronological order, so it is possible to track where the package is at any time.

Blockchain transparency

The information recorded on the blockchain is public, so anyone can view it. Therefore, it can be said that falsification and fraud are unlikely to occur. For these reasons, by utilizing blockchain technology, it is possible to maintain a high degree of transparency, and it can be said that the information is highly reliable.

Effects of smart contracts on blockchain logistics

What effect will the introduction of smart contracts, one of the blockchain technologies, bring to the logistics industry? I would like to briefly look at the technology that automates contracts and payments, and the various impacts that this technology will have.

Significant reduction in costs by eliminating previously required documents

The logistics industry is said to be an industry that requires a lot of document creation in various aspects. Paper-based documents are inefficient because they take time and money to create and manage. By introducing smart contracts based on blockchain technology, it is expected that contracts and payments will be made automatically, documents will be digitized, and the associated human costs will be reduced.

Documents cannot be falsified, so high-quality products can be distributed.

By introducing smart contracts of blockchain technology, contracts and settlements are automatically performed. And since the contract and payment history are recorded on the blockchain, it is impossible to tamper with documents.

With blockchain technology, information is always highly reliable, so fraud such as disguising the production area is less likely to occur, and high-quality products can be distributed.

Using the app makes it easier to keep track of your luggage

By introducing blockchain technology into the app, it will be possible to immediately check the status of the package and where it is. For example, it is possible to track the location of packages by reading QR codes, etc., and you will be able to check what routes they took and where they were stored.

Easy and speedy payment for luggage

Blockchain technology’s smart contract is a technology that automates contracts and payments when certain conditions are met. By setting the conditions in advance, the payment for the package can be done automatically without human intervention.

The introduction of blockchain technology brings benefits to both the sender and receiver of parcels.

What will change if blockchain is used in the logistics industry?

What impact will blockchain technology have on the logistics industry? How will the introduction of blockchain technology be used in the logistics industry? I would like to take a look at a simple example.

It will be possible to track the whereabouts of the person receiving the package at any time

By introducing blockchain technology into the logistics industry, package information will be recorded as history one by one. Recipients will have access to the information so they can keep track of where their packages are at any given time.

In addition, since it is possible to know what kind of process the package has followed and where it was stored, it is possible to provide the true service that the service users want.

No loss of parcels during delivery

With the introduction of blockchain technology, it is possible to reduce the risk of package loss during delivery by recording highly reliable information at any time until the package is delivered to the user of the service. The information recorded on the blockchain is recorded in chronological order, so even if some kind of problem occurs, it will be easy to find the cause by accessing the information.

You can check the freshness and condition of food items one by one.

When transporting food, it is important to consider the environment in which it is transported to maintain its freshness. By introducing blockchain technology, it is possible to check the temperature inside the container that transports food at any time. Anyone can access the information, and it will be possible to respond quickly when the temperature is abnormal.

You will be able to see and manage the condition of food and products and prevent loss

By introducing blockchain technology into the logistics industry, information in various processes will be recorded at any time. By accessing information, it is possible to check the condition of products and food and to grasp the deterioration of food in advance.

By doing so, it is possible to control the delivery status of the packages being transported and minimize losses.

Issues when using blockchain in the logistics industry

We have seen the various benefits blockchain technology brings to the logistics industry. There is no doubt that the logistics industry will enter a new phase with blockchain technology. However, there are challenges in implementing blockchain technology in the logistics industry.

I would like to take a look at those issues.

The need to introduce a new system to all related companies

To introduce blockchain technology into the logistics industry and maximize its effects, it is necessary to introduce a system that utilizes blockchain technology to all related companies involved in logistics. It can be said that it is very difficult to get all the related companies to agree to the introduction.

However, no doubt solving this problem and successfully introducing blockchain technology will bring about a major change in the logistics industry.

Data maintenance controls should be planned

Even if we successfully obtain the consent of related companies, there is one more issue when introducing blockchain technology. Blockchain technology is not a centralized management system.

It is necessary to carefully consider how to handle information recorded on the blockchain. Restricting access to information, whether to share that information, etc. will all need to be considered and discussed.

Summary of Blockchain and Logistics

We have briefly seen the impact and various benefits of blockchain technology on the logistics industry. By introducing blockchain technology, it is possible to simplify operations in various processes and reduce costs.

When blockchain technology is introduced, not only people involved in the logistics industry but also consumers who use the service can benefit. Although there are still many challenges in introducing blockchain technology, the introduction of this technology will surely bring about major changes in the logistics industry.


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