How Blockchain and IoT are Changing the Game in Supply Chain and Logistics
The digital revolution is driving modern businesses to undergo digital transformation. In the complex world of business, technology meets customer satisfaction. Logistics, known for its efficiency and organization, demonstrates the power of this field. The integration of blockchain and IoT is revolutionizing the supply chain, making waves in the business world.
We have prepared this post for you to consider how Blockchain and IoT impact the logistics and supply chain activities. Stay tuned to know more about the topic!
Supply chain management: steps the product goes through
Blockchain Usage: How is It Applicable in Logistics
The integration of this innovative technology into logistics and Supply Chain Management (SCM) is a significant development. The blockchain’s capabilities to provide transparency, security, and real-time process optimization have the potential to make a substantial impact.
When appropriately implemented, blockchain technology can improve trust between shippers and consignees in business transactions and simplify decision-making processes. All parties have access to real-time information, and each network participant operates on the same data, guaranteeing accuracy and consistency.
The integration of blockchain with logistics and supply chain management (SCM) offers various benefits for businesses, such as:
Blockchain responsibilities in logistics
Let’s talk more about some of the numerous examples of Blockchain use in logistics, and how this use streamlines the workflows.
Solving Documentation Issues in Container Shipping
The container shipping process is challenging and time-consuming due to extensive paperwork, which creates difficulties for all parties involved. Paper freight documentation is also at risk of fraud. Processing trade-related paperwork can account for up to 50% of transportation costs, and document forgery, fraudsters, and human errors pose additional threats. Digitalization and blockchain solutions can streamline document circulation, create a powerful network, and revolutionize shipping.
Control of Food Supplies
Foodborne disease outbreaks pose a significant challenge in the food supply chain. Retailers must quickly trace the origin of contaminated goods and remove them from stores to restore consumer confidence. Blockchain technology can improve supply chain tracking and resolve contradictions.
Foodstuff delivery monitoring through the means of Blockchain
How Logistics Benefits Through Internet of Things (IoT)
The rise of the Internet of Things (IoT) has revolutionized supply chain management, allowing companies to track shipments, monitor conditions, and automate processes in ways that save money and improve customer satisfaction. By using IoT-enabled devices such as sensors, RFID tags, GPS trackers, among others, businesses can monitor their entire supply chain and gain real-time insights into their operations.
IoT has made it easier than ever for businesses to identify potential problems in their logistics chain and take action before it becomes too late. For example, RFID tags allow companies to track shipments in real-time, giving them an accurate picture of their operations at all times. GPS trackers can help companies locate lost or stolen shipments and even track the status of their orders. Logistics experts are also able to use IoT-enabled devices to automate processes, such as automatically updating customers on order status or sending out notifications when items have been shipped.
One of the significant contributions of the Internet of Things (IoT) to supply chain management (SCM) is its capability to offer additional understanding of the product delivery cycle and improved tracking and management of inventory levels, among other benefits. Smart sensors on goods provide real-time updates on product conditions, including temperature regulations, with instant notifications for any abnormalities. This helps with quickly addressing unforeseen issues that could disrupt shipments.
Route Management Improvement
IoT technology is widely used for location and route management, with truck beacons and GPS tracking ensuring prompt cargo delivery while keeping customers informed. Real-time warning systems alert dispatchers and drivers about road obstacles and emergencies, ensuring safety and security. Logistics managers use IoT to streamline business processes, identify delays, and enhance customer satisfaction.
The use of IoT in logistics has increased operational efficiency and transparency. By utilizing data from sensors, companies can monitor their fleet more accurately and create smarter routing plans. This helps businesses reduce the amount of time spent waiting at loading docks or traffic jams and optimize delivery times. IoT also enables companies to track inventory levels in real-time, so they can quickly adjust operations based on customer demand and minimize stockouts.
The use of IoT is, like for Blockchain, possible through the specialized software tailored for your particular business needs. Thus, you can find a skilled logistics software creation vendor and start technical partnership with them for ride sharing app development or fleet management solution, or others you need.
What are the components of the IoT-based vehicle tracking
Reduced Fuel Consumption
An IoT-based fuel control system integrated into a fleet management system can effectively reduce the company’s fuel expenses by at least 10%. By implementing fuel sensors in fuel tanks, the system can track various fuel-related information such as fuel level, consumption (per period and average), dates and locations of refills, drainage volumes, and more.
These devices collect important information when combined with the Engine Control Module (ECM), GPS trackers, and analytical software, which can assist in resolving various logistic and fleet management issues. IoT devices can help prevent skimming and theft of fuel cards. Additionally, the GPS tracking and ELD technology can detect stolen card data and alert drivers and managers of any suspicious or unusual card usage in new locations.
Integration of IoT and Blockchain
It is crucial to note that the Internet of Things (IoT) and blockchain are frequently used together in logistics. Quick processing and transmission of data from IoT endpoints is essential, and maintaining information security is a top priority for all participants.
Blockchain has proven effective in solving problems in the supply chain, as evidenced by numerous IoT use cases. Distributed Ledger Technology (DLT) is the ultimate superhero of data storage, keeping information locked away securely and untouchable once it’s recorded. DLT not only provides legal certainty but also becomes the ultimate watchdog, keeping an eye on the temperature and humidity of goods during their journey through transportation and storage.
Data consistency is the lifeblood of the IoT supply chain, where sensors and other IoT endpoints are spread throughout logistics facilities, sending streams of data to command centers that keep the world moving. Thus, the companies are able to:
Quickly connect and manage IoT devices. Data can be collected from trucks, containers, and delivery drones, and connected to the Blockchain.
Use smart contracts to pay duties and fees. The Blockchain technology in IoT devices enables seamless digital currency transactions and autonomous interactions with third-party institutions.
Optimize the transparency of the supply chain. Digital BOL and other cutting-edge smart contract solutions revolutionize the way goods are tracked and delivered. By seamlessly integrating blockchain and IoT technology, these innovations enable real-time monitoring and ensure flawless fulfillment of obligations.
Reduce the potential for data theft and unauthorized access by hackers. The Blockchain is a secure method of storing information for all parties involved in an agreement, protecting it from potential attackers. The Internet of Things, in its turn, allows companies to conduct transactions, end contracts, and handle specifications.
Wrapping Up
With the introduction of cutting-edge technologies like Blockchain and IoT, the companies are revolutionizing the way they operate. Using blockchain and IoT in supply chain and logistics boosts profits and business value.
In order to use all the preferences the technologies give for your logistics flows, you can apply to a skilled logistics software development company. They will consult you as to all of your tech issues to solve, and develop a robust and secure logistics software which will help you increase your company revenue and attract more clients.
Author’s bio:
Yuliya Melnik is a technical writer at Cleveroad. It is a web and mobile app development company in Ukraine. She is passionate about innovative technologies that make the world a better place and loves creating content that evokes vivid emotions.
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