Blockchain and Logistics: Can the New Technology Reinvent an Outdated System?
The Council of Supply Chain Management defines logistics management as:
“…that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”
By looking at The Council of Supply Chain Management’s definition, logistics management is described as the act of streamlining the shipment and storage of goods or services in the most efficient and accurate manner. Given the complexity of logistics paired with supply chain management, speed and accuracy can be exceptionally difficult to manage.
Current logistics procedures, being mainly paper-based, are prone to human error and a lack of communication, which in turn leads to confusion in the supply chain. This can cause a considerable slowdown when processing forms, ultimately resulting in prolonged shipping times.
The use of blockchain for logistics is thought by many to be the next step in increasing the efficiency of logistics management. The key component of blockchain technology, a distributed ledger with its ability to perform actions autonomously, makes it a valuable tool for increasing logistics efficiency.
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