Things block chain applications and technology in the logistics industry

Logistics / Supply Chain is one of the world's largest industry at present. Logistics is the basic behavior of transporting goods from here to there. With the demand for logistics and the increasing global labor, goods distribution and division of labor in the various regions of the world, so that the logistics has become an important part of modern human life.

First, the state of the art logistics industry

1, the individual links in the chain makes it difficult to transparency

Logistics is large and interconnected system of commercial law, trade routes, shippers and red tape and composed by a complex, multi-layered computer technology and old-fashioned paperwork can be achieved. Logistics industry is often shrouded in the unknown and the gap between industry and sometimes even distrust, therefore, transparency for all participants is invaluable.

Companies involved in logistics and supply chains are less willing to share details of the contract, funds or information related to the sale and supply data. This makes it difficult for enterprises to gain visibility throughout the supply chain. This lack of data transparency for the high level at both ends of the chain businesses are ultimately a bad thing.

2, resulting in a lack of transparency can not be truly traceability

Using the current standard, it is difficult to track a single entity in the supply chain components. Unable proper traceability of components transmitted through the chain, so they may leave a lot of powerful information, and this information could be used to drive big data and save money.

3, outdated technology cumbersome and error-prone

A lot of the logistics business is still using the traditional pen and paper forms processing. Then, the hard copy documents can be scanned or manually into a global database (if present). In many cases, even the use of more advanced computer systems, software itself is beyond the scope of support life. These methods are not only slow, error-prone, and high maintenance costs on the scale.

4, different and different information from different entities in the chain leading to confusion

Lack of transparency and traceability, as well as reliance on outdated technology, resulting in a lack of information needed to make appropriate decisions. The same chain of different entities might be given to the report of the same component in the manner of recording (and accuracy of the data) distinct data, leading to a lot of confusion, which often results in significant cost and bring to the enterprise trouble.

By introducing cutting-edge technology solutions to these problems can be alleviated, or in some cases completely solved, these technical solutions designed to improve accountability, reduce costs, and ensure accurate reporting data for each link in the supply chain.

Second, the benefits of things to logistics and supply chain

Internet of Things (IoT) provides a powerful solution for traceability issues: asset tracking. Things is an emerging technology, there are more and more everyday applications, it brings a fine component tracking and data collection tools, which is the traditional manual tracking methods can not be achieved. Potential applications of these tools are almost limitless. With the wealth of information provided by the equipment of these things, there may be more improvements in the near future.

1, in-transit asset tracking eliminates components of modern transport guess

One of the biggest potential uses of the Internet of Things equipment is equipment goods and components on the track throughout the supply chain. Using this technique, no longer need to manually track or do not need, but can be done by digital sensors, from start to finish, the entire supply chain of materials or products by the digital sensor monitoring.

This tracking system has been widely used in a number of other transportation-based industries, such as consumer parcel delivery. By using them in the logistics environment, organizations can accelerate delivery times, improve the transparency of logistics processes, and pay close attention to the transport of goods along the chain.

For example, real-time location system (RTLS) can determine the different vehicles and plant equipment of cargo location. Typically, the RTL become part of the product, including wireless node (e.g., tag / badge); they send a signal, then the reader is received. RTLS system, including the foundation of modern wireless communication technologies such as Wi-Fi, GPS, Bluetooth, ultra-wideband and RFID.

2, networking support detailed inventory and warehouse management audit

By installing a small sensor on the material or product, organizations can maintain accurate and up to date inventory at any time. These "smart inventory" may contain a lot of information about the product itself, their previous position, their presence at the facility in time and so on.

Things can be simplified using a sensor detailed inventory audits, reduce product loss, improper storage or other problems that may affect the total revenue possibilities.

3, analysis and big data is slowly changing each business unit

There is no doubt, information is often the most powerful business tool kit of tools to enable the Internet of Things device can drive more data than ever before. By collecting large amounts of data from every step of the supply chain organization of the supply chain will be able to improve almost every step to maximize efficiency and ultimately save time and money.

The biggest advantage here is the emergence of companies active rather than passive ability. By collecting data and analyzing its new model, organizations can predict trends in data collection, and take proactive action to prevent problems, improve efficiency and increase revenue.

It is estimated that in the UK alone, inefficient supply chain processes and causing revenue losses of nearly $ 2 billion. Things will track and analyze data throughout the supply chain process combine will do almost all other industries have done before - to identify these inefficiencies, and propose solutions.

Intelligently different individuals, entities, and steps to connect the supply chain, will inevitably lead to better, faster end to end logistics.

Third, the chain block the use of logistics and supply chain

Block chain to address the issue of transparency in the supply chain process the document. For those not familiar with the technology, the block chain can be used as a distributed digital ledger transactions. It is the most popular and well-known applications in the form of encryption currency, such as Bitcoin block chain but the core idea can be extended to more applications.

Block chain is a recording method for dispersing and verification information. Each system or stakeholder whenever newly "block" to "chain", which relates to a chain of information must be verified. Audit to ensure that such digital recording each block are accurate, and the information contained in the chain can not be any single chain entity modification. It also committed to ensuring trust and accountability.

1, a block chain advantage of using a lot of information recording:

  • Block chain system provides flexibility in the supply chain process recorded almost every step. From purchase to shipping and delivery, each step can be stored safely and recorded in the block chain.
  • Cryptography block chain will be able to replace paper with digital signature assets and assets. This will allow businesses to save money and improve safety, thereby also increasing the trust of customers.
  • Block chain not only for recording information. Smart-end service contracts can be used to validate the manufacturing process to offer.
  • Block chain offers a high degree of information security and reliability, each link in the chain are guaranteed to remain unmodified state after it is created.
  • Block chain introduces a way to replace the aging, the interlock system provides a consistent recording stream information source, the information may be shared around the world.

Block chain has the potential to revolutionize the way the world of logistics and supply chain information exchange, and there have been many big companies eager to in-depth study of the technology. One of them is the block chain Transport Union (BiTA), the Alliance has about 500 member companies in over 25 countries, the annual gross revenue of over $ 1 trillion.

Logistics giant Maersk (Maersk) and IBM recently formed a joint venture to develop a block-based chain logistics system TradeLens, intended to be an open platform for the world to participate. Other companies have followed suit, obviously, to provide an improved block chain will play an important role in the future of the industry.

Public network block chain worth $ 130 billion; by 2025, they are expected to store 10% of world GDP.

2, the chain block can be changed in six ways logistics

1) block chain data transparency will bring confidence

Trust in the authenticity of the information is a huge problem currently facing the logistics industry, many companies require to protect the confidentiality of each party in all aspects of the supply chain, which may increase the difficulty of transparency. Private realize block chain of each party involved in the transaction are clear, important information during transmission of dispersed access. These digital data blocks ledger with a high degree of accuracy and tamper protection without compromise, to provide controlled access to those in need of inside information. Basically, each party has its own private copy of the data block chain involved, outsiders can not change or access the copies, so the transaction history remains transparent.

2) a contract for the creation of intelligent, sign and implement the agreement provides a new way

According BiTA co-founder Craig? Fuller (Craig Fuller) said the dispute surrounding the transport costs of about $ 140 billion a day lock. In addition, the average time an invoice required 42 days to complete the settlement.

Block chain through the development of intelligent logistics process automation contract is a legal agreement a safe method. The most famous platform is Hyperledger Fabric and Sawtooth, on these platforms, intelligent contract can monitor every step of the process and check the rules listed in the code, to ensure that every contract can be fully implemented.

These contracts can provide reliable intelligence entities across the supply chain, and allows smaller parties to participate in this process. As we all know, for small start-ups to enter the supply chain without the support of important reference materials or strong reputation it is very difficult. Intelligent contracts by ensuring that contracts can be completed to help alleviate this problem.

3) information can be protected using block chain

Using traditional ledger system, a malicious attacker can access and change data stored throughout the supply chain. Block chain not only provides the accuracy of a decentralized information platform, verified by inspections and audits, but also provides encryption tool to ensure a safe way to enter or modify data. In today's interconnected world, the increasing need for security will need a system like block chain to ensure information security.

4) Reliable permission-based access

Block chain control system can access information in different layers of the block itself. For example, in one embodiment only allows interested parties to access the information in the data protection contract, while more general information, such as size or weight of the shipment, publicly available. Control of the access to information not only provides an additional layer of security, but also to support the trust between entities in the chain, and allows them to work independently of each other

5) block chain can bring clarity to multi-stakeholder asset management

Ledger system using a digital block chain, it can easily track assets, and paired with the claimant, without ownership would be any confusion. The permanent record provides a clear way to handle the transfer and verification of assets, these assets may be difficult to use the current recording method.

6) block chain provides a scalable solution for order management

Block chain virtually unlimited scalability to ensure the delivery of even the largest tasks will not be hampered by the function block chain. Especially with so many "same day delivery" a great possibility of the rise of the service, the traditional method of tracking behind.

Fourth, the block chain, and things will change soon logistics and supply chain industry

The logistics and supply chain industry into modernization will have a broad impact on a global scale. By reducing the overall cost and logistics process allows entities to cooperate with more individual institutions, it will be an overall improvement in the overall logistics. These increased efficiencies will eventually lead to cost savings at each end of the process. This shift is not just coming, it is already happening, and the positive impact of this change will continue to resonate around the world in the coming years. (Source: iotforall compile: Lizhao Rong)

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