Blockchain in logistics refers to the use of technology for supply chain management. This technology makes it possible to create a shared and distributed database that makes it easier for supply chain participants to view and verify information in real time.
By using blockchain technology in logistics, aspects such as traceability, transparency, security and supply chain efficiency can be improved. For example, by recording information in immutable, encrypted blocks, the authenticity and integrity of product-related data can be ensured from its origin to its final destination.
In addition, blockchain technology in logistics can facilitate the management of documentation required in international trade operations, reducing errors and delays in customs processes. It can also improve the management of payments and contracts between supply chain participants, reducing the costs and times associated with financial transactions.
In summary, blockchain in logistics can be a valuable tool for improving efficiency and transparency in supply chain management, which can have a positive impact on customer satisfaction, profitability and competitiveness of companies.
How to apply blockchain technology in logistics?
The blockchain has a direct application of its technology, which allows recording the changes that are generated in the logistics chain in real time. The different entities thanks to this information provided can optimize processes and mitigate errors during the distribution process.
Some of the most important applications of this technology in the logistics sector are contemplated in:
- Traceability: The blockchain, as that referred to the advanced database mechanism that allows transparent information sharing, gives the possibility to track orders, payments, accounts and other transactions. The end result is to provide consumers with all the information about their orders, as well as giving details of interest to producers and intermediaries.
- Optimization of routes and shipments: blockchain technology can record the movements of a product throughout the distribution process. As a result, it allows entities to optimize routes and reduce costs.
- Communication transparency: Blockchain technology allows the consumer to have all the details of origin and product processes with full transparency. This is an element highly valued by consumers, especially in terms of sustainability and corporate responsibility.
Therefore, blockchain technology is considered a very useful working tool in the distribution process, since its objective focuses on reducing possible problems generated in the distribution chain.
