The blockchain is based on the concept of a distributed data registry. The information is stored in the form of interconnected cryptographically secure blocks that are viewable by all participants in the system. The advantages of this technology are transparency, security, and decentralization - characteristics that open up new opportunities for entire industries, including logistics.
It allows you to create a single, transparent digital accounting system for all movements and operations with goods from the manufacturer to the end user. Each transaction is recorded as an immutable record, accessible to all interested parties - suppliers, carriers, recipients, and other participants in the supply chain.
This "transparency from start to finish" makes it possible to quickly respond to any deviations, minimize the risks of delays, losses or theft. In addition, it opens up new horizons for in-depth analytics and optimization of logistics operations.
Increased security, reliability of data
In addition to ensuring transparency, it also guarantees an unprecedented level of supply chain security. Due to cryptographic protection, distributed data storage, cargo information cannot be forged or tampered with.
This is critical for tracking shipments of perishable, dangerous or expensive goods. Ensures that data on temperature conditions, expiration dates, as well as information about incidents will be reliable and unchanged.
In addition, blockchain systems can be integrated with other technologies such as RFID, IoT sensors and GPS trackers. This allows you to track the location, condition of the cargo and conditions of its transportation in real time.
Optimization of logistics processes
Firstly, blockchain platforms can simplify and speed up document flow in supply chains. Instead of paper invoices, invoices, and other documents, all necessary data will be stored in a single digital register accessible to all participants. This allows you to automate many routine operations, reduce costs, and speed up cargo handling.
Secondly, the blockchain contributes to more efficient inventory management, capacity utilization planning, and route optimization. Thanks to transparent information about the location, condition and timing of cargo delivery, logistics companies can more accurately predict demand, minimize downtime, and reduce operating costs.
The integration of blockchain with smart contracts can lead to further automation of logistics processes. When the conditions of cargo delivery are met, the smart contract automatically initiates payments, insurance payments and other operations without human intervention.
Growing popularity and prospects
The concept of using blockchain in logistics was first announced in 2016, but since then the technology has gone through a rapid development path. Leading market players such as Maersk, FedEx, UPS, DHL and DB Schenker are actively experimenting and implementing blockchain solutions into their operations.
According to Markets and Markets, the volume of the global blockchain market in logistics will reach $3.3 billion by 2025, demonstrating an average annual growth of 80.1%. The interest in this technology is due to its ability to solve key industry problems such as transparency, security, cost optimization, and process automation.
Blockchain solutions are already being used in various areas of logistics: container shipping tracking, supply chain management, maritime cargo administration, customs clearance, and other areas.
Nevertheless, the introduction of blockchain in logistics involves certain technological, regulatory and organizational challenges. But these barriers will be overcome as technology develops and the number of pilot projects increases. Blockchain has every chance to become the basic infrastructure for the digitalization of the logistics industry in the near future.
