We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Book: logistics firms must look past blockchain hype to see its potential
Forward Thinking

Book: logistics firms must look past blockchain hype to see its potential

September 7, 2018
Supply Chain Quarterly Staff
No Comments

Blockchain technology has the potential to drastically improve data sharing and reduce the risk of a central point of failure in logistics operations, according to a new book by Jason Schenker, an economist who specializes in the material handling industry.

Despite that promise, the technology faces many challenges to its adoption, such as an excess of hype and confusion driven by its applications for complex concepts like cryptocurrencies and initial coin offerings (ICOs), says Schenker, who is president and chief economist at Austin, Texas-based Prestige Economics LLC.

At its core, blockchain creates a distributed ledger of information that can be read by all the members of a particular group, but can never be changed by a member acting alone. Whether it's used to track logistics transactions or to support digital money like bitcoin, the technology allows trading partners to share access to permanent, secure databases.

Those attributes could create significant improvements in efficiency for supply chains, transportation, logistics, freight, and material handling, as well as creating opportunities in other fields like healthcare, agriculture, real estate, finance, and government, Schenker writes in his book, "The Promise of Blockchain: Hope and Hype for an Emerging Disruptive Technology."

PUT_ALT_TXT_HERE

Common supply chain tasks that show great potential to be improved by blockchain solutions include record keeping and the handling of chain of custody of ownership, which are critical practices in any business, Schenker said in an email.

"The impact on corporate supply chains — on logistics, transport, and freight — is going to be massive," Schenker said. "After all, blockchain allows for a permanent distributed ledger, and if used in a private, commercial endeavor, it could provide instant transparency of origin, content, and custody, which is often required from a regulatory framework for conflict minerals, chemical content, or trade."

That data transparency can also add value in public health and safety, in applications such as agricultural products and food safety, he said. "Blockchain can improve transparency of goods transport and freight. And it can allow for greater ease in transactions that rely on antiquated documentation processes in industries that are ripe for disruption," said Schenker.

Schenker's book comes at a time when companies in seemingly every corner of the logistics industry are joining initiatives to provide blockchain education and to develop standards for its applications in freight and transport. One trade group, the Blockchain in Transport Alliance (BiTA), has hundreds of members including major names like GE Transportation, BNSF Railway Co., UPS Inc., FedEx Corp., SAP SE, McLeod Software Corp., and Trimble Inc.

Other firms are beginning to launch blockchain platforms for real-world applications, such as the joint venture created in January by Maersk Line and IBM Corp. to apply the technology to their global trade and transportation practices. FedEx is also testing blockchain for tracking high-value cargo, the firm said in May.

  • Related Articles

    Auto-id industry association to study blockchain potential

    Future continues to look bright for transportation, logistics industry

    Evaluating the strength and potential of logistics clusters

Recent Articles by Supply Chain Quarterly Staff

Reports: Outlook calls for stronger supply chains

Gartner: 4 ways to compete with industry disruptors

Survey reveals there’s plenty of room for improvement in e-commerce fulfillment

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Will this be the decade of supply chain sustainability?

  • The 3PL industry: time to reset

  • The four characteristics of a customer-centric supply chain

  • Five principles for creating a supply chain foreign exchange risk mitigation strategy

  • Supply chain resiliency starts with supplier mapping

Featured Video

Be8de8b1 9bd3 48d6 9400 0bf476fd1f5d

Optimization Through Lean Management 

Viewer Contributed
Uncertain times can put a tremendous strain on your business’s people, processes and supply chains. However, operations can mitigate some of these factors by adopting lean management principles and instilling a culture of continuous improvement. Raymond Lean Management Manager of Solutions and Support Centers Keith...

FEATURED WHITE PAPERS

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

  • Research Report: New Rules for Supply Chain Insights, Collaboration and Overall Resiliency

  • Logistics 2030 – Navigating a Disruptive Decade (Year 2 Report)

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing