FedEx Corp. Sees Blockchain as the Next Frontier in Logistics
Blockchain in Logistics
Blockchain is on the brink of transforming supply and chain according to FedEx Corp. who are already testing the technology to enable them to track high-value cargo. The company’s CEO Fred Smith said in a blockchain conference that: “We are confident that Blockchain has a big implication in the supply chain, logistics and transportation. It is going to be the next frontier which is going to completely change the world wide’s supply chains.”
Blockchain is designed in a way that it can record every step of a transaction delivering the information in a permanent digital ledger thus ensuring transparency. The information transferred to the ledger cannot be changed unless an agreement between all the involved parties which reduces disputes over things like damages, payments and stamps.
FedEx’s interest in the Internet of Things and Blockchain technology is part of the company’s strategy to ensure better customer service and reduce competition. The company is already having a partnership with a company called Blockchain in Transport Alliance which is setting up industry standards using the technology in transportation.
Blockchain is highly preferred in Supply Chain because it has the potential to reduce transaction costs while speeding up processing and freeing up working capital according to Blockchain in Transport Alliance.
FedEx is also experimenting with a Bluetooth based low energy tracking sensor known as Tron according to Robert Carter who is the company’s, Chief Information Officer. The company is already having several patents with Tron. They are also part of the team which will test small drone fights which will happen on May 9 at the Memphis International Airport.
Smith believes that unless a company is ready to move with change and embrace new technologies like Blockchain, then it will face the threat of extinction. Many companies are using Blockchain to control their supply Chain like Samsung which recently launched a Blockchain platform to monitor its supplies.