UPS to evolve trucking business through blockchain technology
UPS joins the Blockchain in Trucking Alliance (BiTA)
The logistics company United Parcel Service, globally known as UPS, linked with Blockchain in Trucking Alliance (BiTA) on Tuesday (8th November 2017). UPS plans to gain the advantages of the blockchain platform to improve the trucking services.
In the modern-day world, Amazon and autonomous vehicles are the leaders of shipping and transport of cargo. But, blockchain technology is catching up with the trend.
Linda Weakland, a UPS director, mentions that blockchain technology makes it possible to improve efficiency and clarity among carriers, shippers, customers, suppliers and other stakeholder in the supply chain process. Linda is in-charge of enterprise architecture and innovation at UPS.
The Chicago Fed describes blockchain technology as a network of nodes or users, each storing their own copy of the data. A blockchain is a distributed database that can store any type of data value.
John Larkin, a Stifel Analyst, predicts that blockchain will connect with truckload pricing futures in the market. Also, it can connect to data analytics assisted and Artificial Intelligence (AI) assisted real-time load matching and empties.
Larkin points out UPS, XPO Logistics and C. H. Robinson Worldwide will invest adequately in blockchain to direct the industrial consolidation towards these revolutionary technologies.
UPS on blockchain technology
The intention of the blockchain is to ease the work of supply chain users. This will be done by handling of transactions in an efficient, secure manner with less errors and lower labor cost through the blockchain.
Implementation of blockchain within the logistics industry will benefit consumers. The products will be cheaper with more reliable and timely delivery. Software vendors, data vendors and trailer leasing companies will also benefit from the blockchain once the platform is complete.
Companies that are unable to cooperate and comply with BiTA will have to think of ways to compete with the new technology to keep their customer base.
Stifel mentions the potential of blockchain to make more efficient transactions and reduce disputes related to payments in the future.
The plan of UPS is to help evolve the logistics network by joining the Blockchain in Trucking Alliance (BiTA).