Blockchain technology, first recognized for its relevance in the world of digital currencies such as Bitcoin, is now beginning to penetrate various industries, including logistics. With its ability to provide a secure, transparent, and decentralized system, blockchain has become an invaluable tool in optimizing supply chains and overall logistics processes. In this article, we will discuss how blockchain is used in logistics, as well as companies that have implemented this technology to improve security, efficiency, and transparency in their operations.
What is blockchain, and what are its benefits?
Blockchain is a technology that allows data to be recorded and stored in the form of a chain of blocks that are connected to each other. Each block contains encrypted transaction data, and once data is recorded in the blockchain, it cannot be changed or deleted without the consent of the majority of network participants. This makes blockchain highly secure and transparent, two features that are very important in the world of logistics.
In the context of logistics, blockchain can be used to record every transaction or movement of goods in the supply chain, providing an immutable digital trail or encryption code. Using this technology, all parties involved in the supply chain, such as suppliers, manufacturers, distributors, and customers, can view the status of goods in real-time and verify the authenticity of the data without the need for intermediaries.
1. Improving Supply Chain Security
Security is one of the biggest concerns in logistics, especially since many parties are involved in the distribution flow of goods. Data related to shipments, the condition of goods, as well as transaction information is often subject to potential manipulation or fraud. This is where blockchain comes in handy.
Example of Using Blockchain for Security:
- Goods Condition Monitoring: The use of blockchain and IoT sensors can facilitate the monitoring of the goods delivery process, especially for dangerous and vulnerable goods such as chemicals and medical devices. Because the decentralized and transparent blockchain system can be ensured to provide very high security for each stakeholder so as to guarantee the goods arrive in the desired condition.
- Transaction Data Security: All transactions that occur along the supply chain can be recorded on the blockchain. For example, as goods move from one party to another, each transaction is recorded and encrypted. This prevents irresponsible parties from altering or losing transaction data.
With this secure system, parties in the supply chain can trust each other more and reduce the risk of fraud or data loss that could harm all parties.
2. Increase Transparency in the Logistics Process
One of the biggest challenges in logistics is the lack of transparency. Often times, the parties involved do not have immediate access to relevant or up-to-date information about the status of shipments or the condition of goods. Blockchain can provide a solution to this problem by providing greater visibility across the supply chain.
Example of Blockchain Use for Transparency:
- Real-Time Tracking of Shipments: Every movement of goods in the supply chain can be recorded on the blockchain. For example, when goods leave the warehouse, their status will be updated directly on the blockchain. Thus, all parties involved in the supply chain, from suppliers to customers, can see the real-time location of the goods, providing a sense of security and increasing satisfaction.
- Immutable Documentation: Blockchain allows all documents related to a shipment, such as invoices, certificates, and contracts, to be recorded in an immutable digital form. This not only increases transparency but also reduces the likelihood of legal or administrative disputes related to the delivery of goods.
With greater transparency, blockchain allows all parties to have equal access to relevant information, which in turn speeds up the decision-making process and increases trust among business actors.
3. Reduce Cost and Process Time
Traditional logistics is very different from today’s logistics, or logistics 4.0, because traditional processes always involve multiple parties in verifying and processing logistics data. This can be time-consuming and add to administrative costs. Blockchain can simplify many of these processes by automating data recording and verification, thereby reducing the need for middlemen and speeding up the delivery process.
Example of Blockchain Use Efficiency:
- Elimination of Middlemen: In traditional logistics transactions, multiple parties are involved in verifying and recording data, which can be time-consuming and costly. With blockchain, all transactions can be automatically recorded and verified on a decentralized system without the need for intermediaries, which reduces administrative costs.
- Simplification of Administrative Processes: Documents and certificates required in the supply chain, such as bills of lading, invoices, or proof of delivery, can be stored in the blockchain and processed automatically, reducing time and the potential for human error.
4. Global Enterprise Use of Blockchain
Several large companies have started implementing blockchain technology to improve efficiency and security in their supply chains. Here are some examples of companies that have used blockchain in their logistics operations:
- Maersk and IBM: Maersk, one of the largest shipping companies in the world, is working with IBM to develop a blockchain-based platform called TradeLens. The platform allows all parties involved in shipping goods to track and verify the status of shipments in real time, thereby increasing transparency and efficiency.
- Walmart: Walmart uses blockchain to monitor and verify food from farm to store. This ensures that every product sold in their stores can be traced to its origin, which is crucial for food safety issues and product recalls.
- De Beers: The use of blockchain in this mining company is used to track the origin or source of existing diamonds so that the diamonds sold are known to their origin and source.
The application of blockchain technology in the logistics industry opens up many opportunities for graduates of S1 Logistics Engineering. Graduates who understand how blockchain works and how this technology can be applied to improve efficiency, transparency, and security in the supply chain will have a significant competitive advantage in the job market. Telkom’s Bachelor of Logistics Engineering provides a strong foundation in learning the latest technologies, including blockchain, which will help students prepare for the challenges and opportunities in the logistics industry of the future.
Tags : Teknik Logistik | S1 Teknik Logistik | S1 Teknik Logistik Telkom University | Telkom University