The Benefits of Blockchain Technology in Logistics

This assignment explores the implications of blockchain technology on the logistics sector, highlighting its potential to reduce costs, increase efficiency, and enhance sustainability. The article in tandlnews.com.au is used as a reference to support the discussion, providing insights into the implementation process of blockchain technology.

Running head: SUPPLY CHAIN MANAGEMENT
Supply chain management
Name of the student
Name of the university
Author note

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Introduction
Technology plays an important role in the contemporary business scenario. This is due to
the fact rapid development in the business sector helps in enhancing the effectiveness of the
entire business process. This is applicable in the case of the logistic sector also. In the recent
time, there are various newer and updated technologies being initiated in the logistic sector. One
of the major technological advancement in this sector is the initiation of the block chain. This
technology is changing the existing process and approach of the supply chain management and
logistics.
This essay will discuss about the effectiveness and the benefits of the initiation of block
chain technology in the logistic sector in relation to the global scenario.
Initiation of the block chain
According to the report published in the tandlnews.com.au, block chain technology is
being initiated by a consortium consisting of some leading companies in the global logistic
sector. They are AB InBev, Accenture, APL and a European customs organization. This key
objective of this technology is reducing the time and resources consumed in the transferring of
the paper shipping documents in the international business (www.tandlnews.com.au, 2018). On
the other hand, initiation of the block chain technology will help to have an online platform for
the transfer of the data and required documents and this it will save the time involved in the
international business. it is estimated that the successful implementation of the block chain
technology will help the transports businesses in the international business to save millions every
year.

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Benefits of block chain technology
According to Korpela, Hallikas and Dahlberg (2017), one of the major benefits of the
initiation of the block chain technology is the reduced used of the paper based documents. The
authors have stated that block chain technology in the logistic sector basically use the online
medium to transfer data instead of the traditional way of paper based documents. According to
the authors, initiation of the block chain technology will also help in reducing the associated risk
with the transferring of the paper based documents. In the case of the transfer of the paper based
documents, major part of the documents can be replicated and duplicated. However, on the other
hand, having the online medium will reduce the probability of the duplicating the documents.
Thus, it is concluded by the authors that block chain technology should be implemented in the
global basis in order to have the maximum benefits.
Sustainability in the logistic sector
Sustainability is one of the major criterions in the contemporary business scenario. This is
mainly due to the reason that business processes should be sustainable enough in order to survive
the current business factors and challenges. According to the Oberhofer and Dieplinger (2014),
the most important area of improvement in the current logistic scenario is the lack of
sustainability. The authors have also stated that technology is comparatively outdated in the
logistic sector due to the complexities associated with this sector. In this case, initiation of the
block chain technology will be more beneficial for the entire logistic and supply chain industry.
There are few ways being identified, through which the sustainability of the logistic sector can be
enhanced.

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One of these ways is adhering to the current technological advancements. According to
the authors, it is important for the business sectors to comply with the latest technologies in order
to survive the current environmental factors. On the other hand, the expectation of the customers
from the supply chain and logistic sector is more compared to what it was a decade ago. In the
present time, customers expect more swift response and less time in the process of transportation.
This, without the initiation of the latest technology, the expectation of the customers cannot get
fulfilled. Thus, the initiation of the block chain technology is one of the major breakthroughs for
the entire global logistic industry.
Importance of collaborative logistics
Process of logistics and supply chain management will be effective and efficient only
when the all the associated stakeholders in the entire process will work on collaborative basis.
According to Gonzalez-Feliu, Morana, Grau and Ma (2013), logistic process involves different
stakeholders such as importer, exporter, shipping merchant, different intermediaries, regulatory
body and banks. Thus, it is important to have the coordination and collaboration between these
stakeholders in order to enhance the effectiveness of the process. In the case of the initiation of
the block chain also, collaboration between these stakeholders is important. This is due to the
reason that technology should cover all the related stakeholders and should maintain effective
relationship between them.
The article in the tandlnews also discussed about the presence of different bodies the
implementation process of the block chain technology. It is discussed that transport
organizations, customs department, shipping lines and logistic companies are being involved in
the initiation of the block chain system. Thus, it can be concluded that article in the tandlnews

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has included all the required areas including the importance of having involvement of different
bodies in the process of the logistic and supply chain management.
Conclusion
Thus, the above critical discussion concludes that development of technology is an
inevitable part in the current business scenario and it cannot be avoided. Moreover, the
implication of the initiation of the block chain technology is also discussed in this essay. It is
discussed that initiation of block chain technology will help to enhance the effectiveness and
productivity of the logistic process. This essay concludes that sustainability of the process of
logistic and supply chain can also be enhanced with the initiation of the block chain technology.
The chosen article is effective enough to communicate the key benefits of the block chain
technology in the process of logistics. The article also gave the brief summery about the
involvement of different stakeholders in the initiation of the updated technologies. This can be
concluded that the chosen article has given a succinct summary about the development of newer
technologies in the logistic and supply chain sector.

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Reference
Gonzalez-Feliu, J., Morana, J., Grau, J. M. S., & Ma, T. Y. (2013). Design and scenario
assessment for collaborative logistics and freight transport systems. International Journal
of Transport Economics, 207-240.
Korpela, K., Hallikas, J., & Dahlberg, T. (2017, January). Digital supply chain transformation
toward blockchain integration. In proceedings of the 50th Hawaii international
conference on system sciences.
Oberhofer, P., & Dieplinger, M. (2014). Sustainability in the transport and logistics sector:
lacking environmental measures. Business Strategy and the Environment, 23(4), 236-253.
www.tandlnews.com.au. (2018). www.tandlnews.com.au. Retrieved 25 March 2018, from
https://www.tandlnews.com.au/2018/03/20/article/blockchain-safe-shippers-millions/

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Appendix

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