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Blockchain Is Transforming Supply Chain IndustryBy Divya Singh | June 23, 2018, 12:06 p.m. GMT
Existing supply chains are complex, slow, and distributed; they involve many parties across the world and they usually don’t even trust each other. Automatically executing smart contracts on the blockchain to transfer titles to goods and money removes the need for banks to provide products such as Letters of Credit. It drastically reduces costs by cutting out the middlemen and their fees, while creating a trusted network of assured authenticity and origin of products being supplied.
Many organizations have started implementing blockchain to drive their supply chain, let's take a closer look at them:
Walmart Inc, a US retail corporation and world's largest discount retailer is ready to use blockchain. A patent for using blockchain technology for a smarter package delivery tracking system.
In an application released by the U.S. Patent and Trademark Office (USPTO), Walmart describes a "smart package" that would include a device which would record information on a blockchain regarding the contents of the package, its environmental conditions, its location and more. It also suggests that its smart package could be used in tandem with other emerging technologies including "autonomous vehicles," such as drones.
Maersk joins hands with IBM to create a better global trade and digitized supply chain. The new company will use blockchain to power supply chain and employ other cloud-based services like IoT and analytics delivered by IBM as well.
"This new company marks a milestone in our strategic efforts to drive the digitization of global trade. The potential from offering a neutral, open digital platform for safe and easy ways of exchanging information is huge, and all players across the supply chain stand to benefit" said Vincent Clerc, the chief commercial officer at Maersk and future chairman of the board of the new joint venture. "By joining our knowledge of trade with IBM's capabilities in blockchain and enterprise technology, we are confident this new company can make a real difference in shaping the future of global trade."
FedEx and BiTA(Blockchain in Transportation Alliance)teamed up in February 2018 to launch a blockchain powered pilot program to resolve customer disputes.
During Coindesk's Consensus 2018, Fred Smith, Chairman, and CEO of FedEx told his audience: "For cross-border shipments, 'trust' is a legal requirement for every transaction. What blockchain has is a potential for the first time ever to make the information available for everybody."
Blockchain is definitely changing the way businesses used to run. Companies have started exploring and implementing the best of the technology can. It looks like the world will be more transparent and easier one to deal with, in the near future.