Increasing Efficiency with Blockchain Technology in Logistics Industry

Logistics is becoming more complex as it involves parties directly in the execution of transporting goods. This complexity creates challenges with communication, arrangement of transportation, and end-to-end transactions and visibility, resulting in inefficient logistic processes. Most businesses and logistic partners handle their arrangements manually offline, increasing paperwork, which often leads to various human errors.

Blockchain technology is changing the logistics industry to make it a possible solution for these challenges. This technology creates an encrypted digital record that tracks end-to-end visibility transportation of goods, automates processes via smart contract, transactions and authenticity of data throughout the lifetime of shipping. Utilizing the efficiency of blockchain technology, businesses and logistics partners are able to work together with more efficiency, creating trust and strengthening collaboration.

Let’s have a look at how XLOG’s online platform leverages this technology to improve efficiency in the logistics supply chain.

Transparency and Traceability

Blockchain provides integrated data for all participants involved in the arrangement of transportation of goods with end-to-end transparency. This allows real-time information for transportation status from beginning to end of the logistic processes.

Monitoring of performance history provides trustworthy and proof-of-origin information for both businesses and logistic partners.

Authenticity of security and Prevention of theft

Blockchain provides a secure and encrypted platform to exchange data and documents via cryptography for the authenticity of data and documents. Every transaction between all participants becomes visible and with blockchain technology in place, nothing can be removed without it being alerted. .
 

This eliminates areas where fraud may occur, preventing illegal access to modify data in the system.

Information details such as photo ID, requirements for pick-up or delivery are contained within the blockchain, allowing shippers the authentication of data, which improves security in the lifetime of shipments.

Safer transaction, reduce human error, reduce transaction costs
The blockchain acts as the main moderator for all the activities involved from booking freights of pick-up and delivery, agreement terms, transactions, fraud protection, record keeping, to the data of the final destination of the delivery of goods. This increases the level of automation by using a feature of the technology called “smart contract”.

A smart contract is simply described as a ‘self-executing contract’ that is pre-programmed to store the terms of agreement of a contract between all the departments involved and executes those terms automatically without any need of third-party processes.

With this, it reduces transaction costs and increases efficiency of transaction processes, avoiding repetition and potential human errors for each transaction.

In conclusion
Blockchain technology has become an efficient feature of the XLOG platform that provides a potential advantage to the logistics industry, increasing the efficiency of the logistics processes for businesses with added security. 

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