Danish logistics company Maersk and IBM recently announced on January 16 that they would be tying up in order to create a blockchain based company which would operate in this as well as supply chain industry. The main aim of this company would be to use the blockchain technology in order to make it easier for them to tap into the global supply chain and the shipping operations.
According to both the companies, blockchain actually has a significant amount of potential when it comes to the logistics industry. It would be able to completely eliminate the tedious paperwork which is currently required in order to transport goods from one company to another. Moreover, with the help of digital records on the blockchain technology, the system would become much more transparent. Owing to this very reason, the time which is required in order to transport goods from one place to another would also reduce significantly. This would lead to a reduction in the cost of imports as well as exports to many countries as well. With the help of blockchain based platform, the transactions would be verified quickly as well. This would ensure that it would become much easier for the companies to provide customers with faster back and support when it comes to transporting products and services.
According to Vincent Clerc, who is the CEO of Maersk, who will also be the chairman of the joint company, the digital platform would ensure that exchange of information between different centers is transparent as well as quick. This would ensure that the entire supply chain would function much more efficiently and quickly. When the entire supply chain functions much more efficiently and quickly, it would be easier for the companies to transport goods from one place to another quite quickly.
The company is planning to initiate the system by the end of this year. This would ensure that efficiencies of the blockchain technology can be used by both the companies. The software solutions would be developed by quarter 3 of 2018. This would mean that the customers would be able to easily utilize the services by the end of the financial year. This would mark a significant change the current logistics market especially the international trade is plagued by heavy paperwork as well as absurd rules and regulations and the flow of information also takes a long period of time which slows down the transportations of goods and products.