Samsung to Use Blockchain Technology to Control its Supply Chain Network
Samsung Electronics Co. which is the world’s largest maker of smartphones and semiconductors may soon start using Blockchain technology to control its huge global supply network. Samsung is largely considering using Blockchain Ledger system to track its global shipments which are worth billions of dollars according to Song Kwang-Woo who is Samsung’s blockchain Chief. The company believes in the adoption of Blockchain they could cut the shipping costs by more than 20 percent.
Even though there many companies all over the world which have expressed their interests in Blockchain technology which will help cross-border payments, Samsung is the first global manufacturing company to take a serious look at using the technology to control its operations. Samsung has contracted SDS to work on the blockchain on their behalf.
According to Song Kwang-Woo who is also the vice president of SDS:
“The technology will have an enormous impact on the supply chains of manufacturing companies. Blockchain will play a very big role in the digital transformation of the manufacturing sector.”
Blockchain was brought into rising by the popularity of Bitcoin, and since then it has had a major breakthrough, and it’s expected to transform the way transactions are verified, recorded and shared. Even though the impact has been limited to the corporate world so far, it’s expected that blockchain business will be generating more than 176 billion dollars per year by 2025.
When it comes to the shipping industry Blockchain will reduce the time required to send paperwork to and from different companies and more to that I will ease the coordination with port authorities. The cost of documentation for shipments is currently very high according to International Business Machines Corp, and that’s why there is a proposal to automate them systems while still tracking the cargo movements using the blockchain technology.
SDS has projected that it will handle 488,000 tons of air cargo as well as 1 million shipping units this year. This will include Samsung products such as the latest Samsung smartphone the Galaxy S9. Samsung wants the Blockchain system launched soonest possible time to help reduce the time between product launches as well as the actual shipments which will make it easier to compete with rival companies.
According to Professor Cheong Tae-Su of the Korea University in Seoul: “Blockchain will be about maximizing visibility and supply efficiency which will translate into greater consumer confidence. Consumer confidence will then lead to consumer satisfaction.