On Tuesday UPS officials reported their decision to joining the Blockchain in Trucking Alliance (BiTA). This alliance is made up of a number of logistics companies seeking to examine the benefits that Blockchain has to offer in the industry. The alliance has been formed in response to enormous growth in the shipping industry putting strains on its foundations.
Increasing reliance on the shipping industry
In the United States, reliance on the shipping industry has grown with the tendency of consumers to buy online instead of in stores. This reliance makes optimal transparency and efficiency all the more important among shippers, carriers, brokers, consumers, and other stakeholders. UPS wants to get in early on playing a role in developing an intelligent logistics network, realising that if they are not at the starting line, they certainly will not be the first to the finish.
Blockchain provides benefits for all supply chain players
Those participating in a Blockchain based supply chain reap benefits from unparalleled transparency. This is important for shippers in increasing their ability to communicate information regarding shipments and their locations, as well as information on compliance to shipping standards. Consumers benefit from greater access to information on their shipments as well as lower shipping costs due to increased efficiency.
Blockchain will be a big theme in shipping and logistics in the upcoming year and is already becoming a key matter in supply chain. The technology lends itself to supply chain and logistics because it provides a way for multiple parties to store and view data together in an efficient and secure way.