Abstract
The problem of minimizing the number of intermediaries in the supply chain is long overdue in the logistics industry. How to carry out logistics operations without the participation of a large number of intermediaries, whose main task is to guarantee the transaction and document flow? Is this possible with Blockchain technology? While this technology is still evolving, there are still many challenges that remain to be addressed. One of the main challenges in implementing this technology in logistics is to reach agreement on its use among all stakeholders. When interaction between different stakeholders in the supply chain with different interests is achieved, then the full potential of this technology to improve the efficiency of logistics processes will be revealed. This will facilitate the emergence of new business models and processes in global trade logistics and increase transparency in the supply chain. Smart contracts with embedded business rules promise not only to reduce transaction costs but to create more agile value chains that enable closer cooperation.
Highlights
1.1 Hidden costs in logisticsA logistic system can only work flawlessly if all the processes implementing the flows of both physical goods and large flows of information, which include both information about the goods and various types of financial information, work in a clear and coherent manner.Due to high competition in the industry, most of the added value is concentrated in logistics
The security mechanisms built into the cluster system create trust between the participants in the information flows of the logistics process
Apart from active implementations in the cryptovoltaic industry, the Blockchain technology is used in many other industries, including logistics
Summary
A logistic system can only work flawlessly if all the processes implementing the flows of both physical goods and large flows of information, which include both information about the goods and various types of financial information, work in a clear and coherent manner. The potential of the Blockchain technology is exactly ideal for solving problems of trade documentation exchange, which will minimize time and financial costs of maritime cargo transportation administration. An example of this is the transportation of frozen and chilled products. On March 4, 2018, a consortium of AB InBev, Accenture, APL, Kuehne + Nagel and the European customs organization successfully tested the Blockchain solution This solution will significantly reduce the need for printed shipping documents, which will save the logistics industry more than $100 million annually. This solution allows for information exchange using Blockchain technology (Morley, 2017). This solution can significantly reduce the risk of penalties for non-compliance with customs requirements, significantly accelerate the information flow of transport documents, reduce the requirements for data entry, simplify the introduction of changes in data during transport, make better reports for verification
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