BLOCKCHAIN IN SUPPLY CHAIN MANAGEMENT: FAD OR POTENTIAL?

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ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution

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FREIGHT RATES?

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SECURITY, TRANSPARENCY OF MOVEMENT THROUGHOUT THE SUPPLY CHAIN AND ELECTRONICALLY INITIATING AND ENFORCING CONTRACTS, ARE VITAL FOR SUCCESSFUL SUPPLY CHAINS. BLOCKCHAIN TECHNOLOGY IS IS FACILITATING VISIBILITY AND EFFICIENCY IN TRANSACTION IN VARIOUS INDUSTRIES.

IN OUR LATEST SURVEY, WE ASKED IF BLOCKCHAIN TECHNOLOGY WILL

HELP EASE AND MAKE ADMININSTRATION WORK IN SCM

MORE EFFICIENT.

“DO YOU EXPECT BLOCKCHAIN TECHNOLOGIES TO REGULATE

AND SIMPLIFY ADMINISTRATIVE WORK IN SHIPPING AND

LOGISTICS/SUPPLY CHAIN MANAGEMENT?”

THE RESULTS WERE AS FOLLOWS: 72% OF RESPONDENTS SAID "YES" WHILE

20% WERE "NOT SURE" AND 8% NOTED "NO".

“I DO EXPECT BLOCKCHAIN TO SIMPLIFY ADMINISTRATIVE TASKS, BUT MORE

IMPORTANTLY BELIEVE IT WILL SERVE TO SIMPLIFY THE PROCESS OF

MANAGING SHIPMENT INFORMATION AND THE FINANCIAL TRANSACTIONS

INVOLVED WITH TRADE.”

KENNETH KOWAL, @LOGISTICSTEK

UNKNOWN. THE PRODUCT AND FINANCE SUPPLY CHAINS RUN

PARALLEL. THERE IS NO LINK OR INTEGRATION. WILL BLOCKCHAIN BE

THAT FIRST STEP TO INTEGRATION? AS LONG AS THE TWO SUPPLY CHAINS ARE SEPARATE, THEN IDEAS AS TO SIMPLIFY

MAY BE PREMATURE.

@LTDManagement

ANOTHER INDUSTRY EXAMPLE WAS PROVIDED BY @NAMENODE5 WHO SUGGESTED WE LOOK INTO WHAT IBM IS DOING WITH THE COTTON INDUSTRY. WE DID AND THANK YOU @NAMENODE, IT IS INDEED INTERESTING!

LAST MONTH, THE SEAM, A COMMODITIES TRADING AND AGRIBUSINESS SOFTWARE PROVIDER, ANNOUNCED IT WOULD FORM A BLOCKCHAIN CONSORTIUM FOR THE GLOBAL COTTON INDUSTRY. THE GROUP PLANS TO WORK WITH IBM TO CREATE A SUPPLY CHAIN AND TRADING ECOSYSTEM.

GUIDE TO OCEAN FREIGHT PRICING TRANSPARENCY

DOWNLOADOUR WEBINAR

BLOCKCHAIN AND THE OCEAN FREIGHT MARKET

MAERSK IS EXPLORING WAYS BLOCKCHAIN TECHNOLOGY CAN

IMPROVE OPERATIONS INVOLVING

PAPER-BASED BILLS OF LADING. THE COMPANY

WAS INVOLVED IN A PROOF OF CONCEPT

WITH BLOCKCHAIN EXPERTISE FROM THE IT

UNIVERSITY OF COPENHAGEN, AIMED TO

REPLACE THE TRADITIONAL BILL OF

LADING.

ADDITIONAL READING

XENETA SOURCES: CAPACITY PULL ON ASIA-EUROPE WESTBOUND POST CNY

CLICK TOREAD

ACCORDING TO IBTIMES.COM, IN THE CASE OF CONTAINER

SHIPPING WHERE THERE IS OVERCAPACITY AND THE

PAPERWORK PROCESSING IS MORE COSTLY THAN SHIPPING THE CONTAINER, THE MARGINS

ARE SLIM.

ANOTHER EXAMPLE WITH THE OCEAN FREIGHT MARKET IS MARINE TRANSPORT INTERNATIONAL (MTI) WHO IS USING BLOCKCHAIN TECHNOLOGY FOR SHARING VERIFIED GROSS MASS (VGM) INFORMATION FOR CONTAINER WEIGHING

IT’S STILL EARLY TO TELL HOW REALLY USEFUL BLOCKCHAIN TECHNOLOGY WILL BE. EVEN THE RESEARCH FIRM, GARTNER, SEEMS A BIT SKEPTICAL.

GARTNER ANALYSTS BELIEVE THAT MANY OF THE SOLUTIONS CURRENTLY BEING DEVELOPED USING BLOCKCHAIN TECHNOLOGY COULD BE DONE USING EXISTING, TESTED AND PROVEN SYSTEMS SUCH AS RELATIONAL DATABASES HOSTED IN A CLOUD.

LEARN HOW XENETA CAN HELPYOU GET INSIGHT INTO YOUR

GLOBAL OCEAN FREIGHT PRICES.

REQUEST DEMO NOW

MAERSK IS EXPLORING WAYS BLOCKCHAIN TECHNOLOGY CAN

IMPROVE OPERATIONS INVOLVING

PAPER-BASED BILLS OF LADING. THE COMPANY

WAS INVOLVED IN A PROOF OF CONCEPT

WITH BLOCKCHAIN EXPERTISE FROM THE IT

UNIVERSITY OF COPENHAGEN, AIMED TO

REPLACE THE TRADITIONAL BILL OF

LADING.

THERE ARE STILL MANY FACTORS THAT WILL NEED TO GO INTO THE APPLICATION. MORE

IMPORTANTLY IT'S GETTING PEOPLE ON BOARD. HOWEVER, IF YOU CAN GET THE ACCEPTANCE IT CAN BE A PROMISING MECHANISM FOR DATA MANAGEMENT

AND/OR RECORD KEEPING

@DHALVORSONBUSH FROM AMERICAN EAGLE LOGISTICS