More than half of transportation and logistics professionals still use a pen and paper to manage their supply chain - here's how blockchain could change that
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Blockchain is seemingly being explored by innovation teams in every corner of every industry. This includes the logistics industry, which, despite continuing on an impressive upward trajectory - the market is expected to reach $15.5 trillion by 2023, up from $8.1 trillion in 2015 - is filled with inefficiencies that the distributed ledger technology (DLT) is potentially well suited to fix.
This is leading some of the largest firms in the logistics industry to explore blockchain and its potential use cases. For example, in 2017, a group of technology, transportation, and supply chain executives formed the Blockchain in Transport Alliance (BiTA) to create a forum for the development of blockchain standards and education for the freight industry. BiTA now has over 450 members, including global heavyweights UPS, FedEx, SAP, Google, Cisco, and Daimler.
However, there are still major hurdles to overcome before the technology can become commonplace. Many companies, especially small- to medium-sized businesses (SMBs), are still unaware of what blockchain is, how it works, or what the benefits of the technology are.In this report, Business Insider Intelligence explores how blockchain can provide value to the global logistics industry. We break down some of the inefficiencies in the logistics industry that are leading firms to explore blockchain and explain how the technology can be used to solve these issues. Additionally, we examine some specific use cases along the supply chain and identify some of the hurdles to adoption. And finally, we take a look at what needs to occur in the logistics industry for blockchain to be deployed widely.
The companies mentioned in this report are: BiTA, FedEx, IBM, Maersk, Modum, SAP, Volt Technology, and Walmart.Here are some of the key takeaways from the report:In full, the report:
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