Blockchain will be the killer app for supply chain management in 2018

0
4


This year, blockchain testing programs will evolve from pilot tests to real-world platforms, and supply chain management is among the industries the distributed ledger technology is set to disrupt.

On Tuesday, Maersk and IBM announced a joint venture to deploy a blockchain-based electronic shipping system that will digitize supply chains and track international cargo in real time.

The new platform could save the global shipping industry billions of dollars a year by replacing the current EDI- and paper-based system, which can leave containers in receiving yards for weeks.

blockchain maersk ibm Maersk

A new blockchain-based, distributed electronic ledger could save the shipping industry billions of dollars by replacing outdated systems for tracking cargo and getting approval from customs and port authorities.

A lot of companies are interested in blockchain for creating more efficient workflows, but supply chain management is one of the “big, killer apps,” according to Vipul Goyal, an associate professor in the Computer Science Department at Carnegie Mellon University (CMU).

“For example, as goods move from one place to another or one part of a company to another…, companies are interested in using blockchains to keep track of how goods are moving and where they are,” said Goyal, who is part of CMU’s Cryptography Group.

Paul Brody, Ernst & Young’s (EY) Global Innovation Leader for Blockchain Technology, said the blockchain market over the past 18 months has been going through an “explain this to me” phase (PowerPoint) into the “prove it to me” phase (working conference room pilots).

“Now we’re in the ‘Okay, build it for me’ phase,” Brody said via email. “We see this in our business: clients are moving projects towards production and…we have similar conversations with others in the industry.”

Deloitte CTO Bill Briggs agreed: “You can go industry by industry and you’re seeing concepts proven, pilots now moving into production. “Things like supply chain validation, food safety verification, consumer products companies and potentially industrial and even life sciences companies are starting to circle it.”



Source link