Today the Boston Consulting Group (BCG) unveiled a
report about blockchain in the transport and logistics (T&L) industry. The key conclusion is that the sector stands to benefit enormously from blockchain. Given the upside, adoption has been slower than expected. However, 88% of survey respondents believe blockchain will create some level of industry disruption.
“The best blockchain networks will be the hardest to create,” says Andrew Schmahl, a BCG partner and coauthor of the report. “By increasing transparency, blockchain can mitigate the mistrust that often exists within the T&L industry’s multiparty transactions. Yet this same mistrust makes it hard to bring together the industry’s diverse participants into a common blockchain ecosystem.”
The report points to the numerous friction points in the logistics industry. Any shipment invariably involves several suppliers resulting in multiple handoffs. Additionally, there are continually evolving regulations. The combination makes shipping error prone. Hence the need for process automation where blockchain can play a crucial role. However, to reap the full benefits blockchain needs to be used in conjunction with other technologies such as the Internet of Things (IoT), machine learning and artificial intelligence.
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