Blockchain technology is undoubtedly an innovation that can be applied in virtually every sector of the economy. Whilst it is already been used in a lot of sectors of the economy such as the banking sector, telecommunication sector, etc., it is also beginning to find its role in the transport sector. It is believed by some transport experts that blockchain might be the best thing to happen to transport and logistics after containerization was introduced in the 1960s.
Blockchain technology does not only make it possible to closely monitor the movement of goods from a supplier to a customer, it also makes it easy for every member of the team that is involved in the supply of goods to reduce the likelihood of a human error occurring. Although all these benefits of blockchain technology to the transport sector are quite amazing, there is more to be gained from blockchain by the transport industry. Blockchain helps in cutting costs of transactions, as well as creating a transparent environment.
There are many ways in which blockchain technology can be used to transform the transport sector, so let’s go over a couple of them.
Blockchain has helped in the Elimination of Bulky Paperwork
It is quite normal for the process of moving goods over the sea to require a lot of paperwork. In as much as this is a process that has to be passed through before goods can be shipped from one continent to another, it is not exactly effective. It is expensive and also requires a lot of time. The reason for this is simple; when goods such as are transported, they usually require up to 20 documents. These documents do not just require a lot of time to go through carefully, they also bring about a reduction in transparency.
In addition to reducing the number of documents that are required for shipping, blockchain technology when used in the logistics industry goes a long way in reducing data entry. This, in turn, reduces the number of checks that are made on goods being transported. Ultimately, this helps companies reduce their running cost and also helps them use up less time during transaction.
Blockchain is Beneficial in Monitoring the State of Machinery that is made use of in the Logistics and Transport Sector
Blockchain is not only used to do paperwork in the logistics industry; it can also be made use of in the state of machinery. With blockchain technology, access to a ship’s performance details can be obtained. This ensures that an effective maintenance routine is carried out.
The blockchain can also help in keeping a perfect record of machine parts that have been changed and when they were changed. The records of machine maintenance can come in very handy if the machine gets put up for sale.