Blockchain + logistics =? Take a look at what UPS, Maersk, and IBM are doing
What will be the hottest thing at the beginning of 2018? Blockchain is undoubtedly one of them. What innovations will such technology bring to the logistics industry? What explorations have foreign colleagues made? This article by Teacher Zeng has been comprehensively summarized and I believe it will bring some inspiration to Chinese colleagues.
2017.2.21: IBM officially released logistics and transportation solutions
On June 21, 2017, IBM and AOS, a Colombian company that specializes in providing logistics solutions, announced together , they are collaborating to develop a solution built on Blockchain and Watson IoT on the IBM Cloud to increase efficiency in the logistics and transportation industry across the country.
Blockchain serves as an immutable ledger that records transactions between members of the business (Transaction) network. Within the supply chain, this provides all permitted members with visibility into the exchange of information throughout the entire transportation cycle, thereby increasing data and transaction transparency.
Traditionally, supply chain transactions are done manually, with a higher risk of recording errors and delays, which can lead to discrepancies between what is recorded and what is actually loaded. By digitizing this process using blockchain and IoT, relevant information is obtained directly from sensors placed on the truck and then entered into the blockchain, creating a single shared repository available to all authorized participants Access to participants may only be achieved by mutually knowing parties.
With this solution, as soon as the truck leaves the distribution point, an automated message is sent to the customer informing them about the load, weight and estimated time of arrival. If part of a delivery is returned, an invoice can be automatically issued based on the actual goods delivered. Furthermore, through sensors located on the trucks, using IoT and blockchain, an information repository is generated that tracks all interactions made by each truck and its respective load from the distribution point to the end customer. , parking and trading. Increased transparency can help increase the separation of responsibilities and liabilities between shippers and their customers, facilitating the flow of business.
For AOS, this project is very important to the entire country’s logistics industry. "The proper handling and use of transaction and exchange information related to goods is key for the logistics and transportation industry, therefore, our main goal with this solution is to provide transparency and security throughout the entire transportation cycle", Ricardo Buitrago, AOS Innovations "The solution is now available as a functional prototype on the IBM Cloud for companies in the logistics, supply chain and transportation industries across Colombia," Buitrago added, according to the department head.
The solution also integrates Watson IoT and is designed to monitor what is happening with the truck. For example, the solution captures loading and unloading to define available truck capacity, as well as which bin and which driver can take the load; and this data is also correlated with external information such as weather, humidity, temperature and driver data to estimate deliveries Give your customers time.
"One of the biggest challenges facing the logistics and transportation industry is protecting their assets and goods, which is why implementing this blockchain and IoT solution in the Cloud is a solution that all parties can press Demand access to critical data and the opportunity to make smarter decisions for the benefit of the business," said Jorge Vergara, Chief Technology Officer, IBM Colombia.
In the future, the solution is expected to include new features such as electronic sealing mechanisms for land cargo control and monitoring.
2017.11.7: UPS joins the Blockchain Freight Alliance
In addition to IBM, some logistics giants are also exploring this field. Relevant people said that blockchain should be able to improve transaction efficiency and reduce payment disputes in the logistics industry. Self-driving cars and Amazon are still hot buzzwords in the shipping industry today, but they may soon give way to blockchain.
At the end of 2017, United Parcel Service (UPS) announced that it had joined the Blockchain Freight Alliance (BiTA) and was carefully studying the platform's products.
"This technology has the potential to increase transparency and efficiency for shippers, carriers, brokers, consumers, suppliers and other supply chain stakeholders," Linda Weakland, Director of Enterprise Architecture and Innovation at UPS said in a statement.
However, UPS’s move is not surprising to the investment group Stifel. Stifel analyst John Larkin wrote in an Oct. 29 report: "We believe that blockchain will be integrated with the vehicle pricing futures market and assisted by data analysis and artificial intelligence-assisted real-time matching of loaded and empty loads.
Larkin said three companies will "invest enough in technology to drive industry consolidation around these core transformational technologies -" UPS, C.H. Robinson Worldwide and XPO Logistics.
Larkin said: "The theory is that blockchain-powered supply chain participants will be able to process transactions more quickly and more securely, reduce errors, and reduce the labor costs involved in the entire process."
Consumers could benefit from widespread adoption of blockchain technology across the logistics industry, Stifel said. Larkin writes that products will arrive cheaper, faster and more accurately thanks to blockchain. If the technology is implemented as theoretically possible, even software providers, data providers and trailer rental companies could see greater value from day-to-day operations.
However, "there are several organizations or departments that could be completely or partially revolutionized by the introduction of blockchain into the trucking business," Larkin said.
"Potential losers are those who choose not to adhere to BiTA's industry standard protocols, or choose to operate non-transparent businesses," Larkin said.
Overall, Stifel said, "Blockchain should improve transaction efficiency and reduce payment disputes, but it is still years away."
2018.1.16: IBM and Maersk plans to create new blockchain company
IBM and Danish shipping giant Maersk are joining forces to form a new company with the goal of commercializing blockchain technology - a trendy cryptocurrency derived from the cryptocurrency Bitcoin. *Share the ledger.
An anonymous New York venture capital firm stated that Maersk owns 51% of the new joint venture and IBM owns 49%. The company aims to help shippers, ports, customs, banks and other stakeholders in global supply chains track shipments and replace related paperwork with tamper-proof digital records.
IBM and Maersk conducted their first blockchain trial in the summer of 2016. Michael J. White, CEO of the new company, said the pilot, which tracked a shipment of flowers from Mombasa, Kenya, to Rotterdam, the Netherlands, and other tracking demonstrated the potential of the Maersk system.
Since then, the two companies have collaborated on testing with Dupont, Dow Chemical, Swiss food processor Tetra Pak, and various ports and customs offices. Other companies, such as General Motors and Procter & Gamble, are exploring how to use the technology to streamline record-keeping in their supply chains.
"We saw an opportunity to improve the efficiency and timeliness of cargo transportation," White told Fortune. Previously, White served as president of North America for Maersk Line, the container shipping arm of Maersk.
"Even small-scale improvements can have a significant impact on global trade," said Marie Wieck, general manager of IBM's blockchain team.
Wieck said that currently, many shipping supply chains are mired in a quagmire of documents and administrative communication between a large number of middlemen. Lost or delayed documentation that results in damage to perishable goods can end up costing up to a fifth of the total cost of shipping.
According to a 2013 World Economic Forum study, reducing friction in international trade over information sharing and border management "could increase gross domestic product by nearly 5% and increase transaction volumes." 15%" — a figure that could reach trillions of dollars.
IBM and Maersk see the adoption of blockchain as a way to achieve this improvement. They believe that by providing a single view of all transactions taking place in a complex network of parties, blockchain can help eliminate considerable waste of resources.
The chairman of the new joint venture said in a statement, "The potential to provide a neutral, open digital platform to exchange information in a secure and convenient manner is huge for all involved across the supply chain. Everyone will benefit from it.
Bill Fearnley Jr, director of blockchain strategy research at market research firm IDC, said: "Supply chain is a very hot topic now, and it is only accelerating from here." He pointed out that IBM. The new company with Maersk will have a competitive advantage over smaller blockchain startups competing in the same market because of the established business relationship between the companies behind it.
IBM and Maersk's technology is built on Hyperledger, This is a blockchain first developed by IBM and now maintained by the Hyperledger team for Linux F.
IBM works with companies such as Walmart (WALMART), Nestlé (NESTLE), and Unilever (UNILEVER), respectively. In the field of food safety and supply chain, the company is also engaged in pilot work in finance, healthcare and other industries
Like Microsoft (MICROSOFT), Ernst & Young (EY) and others. , Maersk has also conducted separate blockchain trials with marine insurance companies
White said he expects the joint Maersk-IBM startup to receive regulatory approval in the spring and in the third quarter of this year. To begin selling the software, the new company is organizing an advisory committee of industry and government officials to help guide its development.