Making Logistics Processes Efficient with Blockchain Applications

Published : Oct 25, 2019

Blockchain applications logistics

  • Inefficiencies like high administrative costs, payment disputes, and tracking and traceability continue to paralyze logistics and transportation processes in any industry's supply chain. It necessitates new technological innovations to address these challenges, such as the blockchain technology. Blockchain supply chain management solutions can radically transform service models of logistics and transportation with its applications.

    Simplified Logistics Operations with Blockchain

    After gaining traction in different industries like finance and healthcare, blockchain is finding significant implications in the logistics industry. It makes logistics and transportation processes and operations more efficient by providing technology benefits in several ways. 

    Operational Efficiency

    Blockchain makes storage and sharing of transactions, contracts, and other documentation information secure and efficient with features like cryptography mechanisms, decentralization, and consensus methods. 

    If logistics providers and other involved participants in a process use a blockchain platform to record information can achieve significant efficiency. Having a distributed and shared but immutable record database can save time and cost drained for manual documentation in processes with security.

    Use Cases

    Custom processes require manual reconciliation and paper documentation. Blockchain technology optimizes this process by storing all documentation on the database, including business-sensitive customs forms. 

    Similarly, shipments undergoing multiple checkpoints can avoid documentation by showing only the required information digitally. It can and save time and cost significantly while increasing efficiency in delivery.

    Traceability of Information and Processes

    The blockchain makes all the information, records and documentation transparent at every stage for network participants. Technically, in a supply chain setting, such information management can provide traceability to the movement (or flow) of goods from the production hub to its destination. With this increased visibility and accuracy, stakeholders in the chain can identify lags, tampering, delays, and fraud. This advantage of visibility establishes trust between other participants, with transparent delivery services and operations.

    Smart Contracts

    One of the aspects of the blockchain, smart contracts are autonomous contracts. They self-execute tasks when preset conditions settle between two or more participants while storing information in the blockchain database. For instance, a client needs to make a transaction to a logistics provider upon the delivery of the shipment successfully. After the delivery, a smart contract can instantly perform the transaction to the logistics provider. It reduces the need for paper-based systems while eliminating the risk of delays and errors. Not only this but smart contract solutions can also reduce administrative costs by optimizing repetitive and unnecessary processes.Blockchain smart contract applications in logistics


    Blockchain technology is a game-changer that promises to transform traditional ways in which logistics providers execute their services. It assists in streamlining the complex processes and saves time, cost and resources with efficiency and strengthened security.

    However, the successful implementation of blockchain technology in logistics requires a comprehensive understanding of its intricacies and applications. The blockchain team at Oodles possesses the requisite knowledge and skills to incorporate blockchain technology into business models. Connecting with our blockchain consulting and development team can provide you assistance in overcoming numerous logistics and delivery challenges of today and tomorrow.

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