|May 15, 2018 07:00 PM||By: Ben Noble | 3070 Views|
FedEx is assured that blockchain technology will transform the logistics industry, and they don’t want to be left back.
The logistics monster is actively testing methods to use blockchain to pursue high-cost, mission-critical cargo. In a developing trend of companies investigating blockchain tech for business uses, FedEx joins the joins others like Samsung in supply chain applications.
According to a Bloomberg interview including the CEO,
“We’re quite convinced that it has big, big implications in the supply chain, transportation, and logistics,” CEO (Chief Executive Officer) Fred Smith announced at a blockchain conference in New York on Monday. “It’s the near frontier that’s going to change worldwide supply chains.”
The principal draw is the idea of the permanent, immutable ledger. When shipments stretch divided the world into ever-globalizing economies, the ledger can store necessary transparency with a single record that all individuals agree on. This would ease the headaches with disputes that range from postage to payments and receipt of packages. Different circumstances for blockchain ledgers are cropping up with increasing adoption, like some news channel statement on its application for new GDPR regulations.
Blockchain technology testing is part of FedEx Corp’s applications for improving customer service and waiting for one step forward of the disruptive competition, according to Smith. The organization has pulled up with the Blockchain in Transport Alliance.
The Alliance’s mission states,
BiTA was created by experienced tech and transportation executives to build a forum for the development of blockchain standards and education for the freight industry. Our purpose is to bring together starting companies in the freight technology industries that have a complete interest in the development of blockchain technology.
Thousands of companies have applied for membership.
FedEx’s testing also involves ironing out standards in the industry with BiTA. BiTA thinks that the blockchain is good for the industry in that it can reduce costs, in extension to speeding up and automating delivery processes. Its membership program currently involves shipping juggernauts, including BNSF Railway, Koch Logistics, and Penske.
With disruptive tech moving up main-stay industries, Smith understands that innovation is the key to maintaining profitability. Without trying out and performing cutting-edge tech, companies will “probably, at some point, extinction,” the CEO stated.
It is assumed that blockchain applications will work 10% of global GDP, so it makes a reason for logistics corporations to penetrate into the tech early. Alongside industry experts and BiTA, the blockchain could help propel the shipping industry into a modern era.