What is the blockchain?
The blockchain is a technology that is based on connecting a set of computers (called nodes) together using a common protocol that validates and stores information in a peer-to-peer network (P2P)
In short, it is a kind of blockchains connected to each other and strongly encoded that contain information about all the transactions that are carried out in said network. This allows that the verification and validation of the information by a third party is not necessary.
Due to the system, the information cannot be eliminated, only added, since modifying a block will imply changing the information found in the others.
Although it is a very recent technology, the blockchain has proven to be effective in many sectors, which is why it is now used in transactions of any type, including the logistics sector.
Blockchain in logistics sector
The blockchain has changed the way the logistics sector conducts large and complex trade exchanges.
One of the most important uses was the development of smart contracts, contracts capable of being executed in each node of the network by themselves and operating autonomously, without a third agent verifying the information.
This technology is presented in the logistics sector through four categories:
- International Trade.
- Land transport of goods.
- Product logistics traceability.
- Last mile delivery.
Use of blockchain in international trade
Many different agents intervene in international trade, generating countless documents due to the transactional logistics operations they carry out.
Faced with this situation, the blockchain is presented as a model that decentralizes, generates trust, and enhances the efficiency of these operations, since it allows a secure network to be established between all the parties involved. In this way, any information can be verified instantly, without third parties, reducing the use of paper, minimizing possible communication errors, and being managed from the same channel. The data source becomes solid, reliable, and secure.
The blockchain in land transport of goods
The purpose of freight transport is to promote collaboration and transparency among the participants in the logistics chain, establishing collaborative networks without intermediaries. That is why the blockchain is a great ally: it allows creating secure spaces and platforms that connect carriers with end consumers, without intermediaries.
Thus, loads are easier to manage anywhere in the world without making wasted trips. In addition, smart contacts reduce the risk of non-payment and delinquency.
Blockchain in product traceability
Traceability adds value to the product and improves the image of entities, making them more transparent. This aspect is very important for sectors such as food, the pharmaceutical industry or luxury products; And, in addition, it is an achievable requirement thanks to blockchain technology:
- Data exchange is reliable.
- No one is the owner of the system.
- You can always know the status and situation of the products regardless of what phase of the logistics chain it is in or who is handling it.
Blockchain and last mile delivery
Logistically, the last mile is the most expensive and slowest part of the process: in rural areas it is several kilometres away, while in cities the high traffic density delays deliveries. In addition, the consumer has become more demanding in this final section of the logistics chain.
Technologies such as blockchain are important in order management: they put the warehouse or store in contact with the delivery person.
Advantages
The blockchain is advantageous for the logistics sector, especially in terms of security, transparency, and efficiency:
- This technology can create self-managed user communities linked by common regulations, without intermediaries.
- These users are the owners of the information, so it cannot be altered or questioned.
- Documentation is done in a secure, unambiguous, and automatic manner.
- It is a collaborative ecosystem that forces stakeholders to trust each other.
- Blockchain technology offers traceability of products, providing the opportunity to register and regulate in real time, making tasks accessible and transparent.
- Tasks can be scheduled, improving processing speed and efficiency.
Blockchain Trends
Currently the blockchain is used in the logistics of various sectors.
In the pharmaceutical sector
This technology has barriers to overcome in pharmaceutical processes, but the most relevant benefits and applications go through:
- Traceability of medicines. Ensure and monitor the steps that each product follows throughout the production and distribution chain
- Data Protection. Detect any modification in the data. In this way, the information moves more securely.
- Tracking medications and prescriptions. Track the issuance of prescriptions and the final sale of medicines, controlling the destination of each one.
In the automotive industry
In the case of the production chain to develop autonomous vehicles, this technology serves to:
- Integrate data on the status and actions of vehicles in real time.
- Check the traceability of the parts that make up the vehicle until it reaches the factory.
- Avoid cases of fraud by controlling data on the condition of the vehicle and its components.
- Optimize costs in the logistics chain, reducing the number of intermediaries.
In food industry
In the case of the food industry, the blockchain could identify the sources of contamination of a product.
Naeco logistics solutions, such as the ADIAPACK box, are ideal for optimizing reverse logistics costs, shipping food delivery or pharmaceuticals, and tracking their traceability.
