Deloitte, Kerry Logistics, and CargoSmart leverage blockchain to digitize global logistics
Deloitte, Kerry Logistics, and CargoSmart have successfully connected multiple distributed ledger technology (DLT) networks. The companies have created a platform to enhance efficiency for the shipping industry worldwide by digitizing document exchange between forwarders and carriers, as well as improving the traceability of shipping documents.
Completed in December 2018, the platform's proof-of-concept (POC) is interoperable across different DLT and cloud networks commonly used by participants in global trade and finance.
"A healthy logistics ecosystem is paramount in global trade, but complicated documentation has been a structural problem,” said Deloitte Asia-Pacific Blockchain Lab leader Paul Sin. “Document digitalization is not just the first step, but also a groundbreaking step in the transformation of the logistics industry.”
In addition to facilitating document coordination, Sin said, DLT speeds up approvals, provides updated and secure data for informed decisions, and offers a source of truth for all participants, especially banks, insurance companies and other financial institutions. The companies expect even greater benefits from DLT applications for shippers, forwarders, carriers, and other players at large in the future, Sin added.
“Distributed ledger is a technology that could simplify the complicated transactions in logistics operations. When we eliminate redundant processes, we can bring new benefits to our customers and to the planet, which has always been one of Kerry Logistics’ beliefs,” added Wilson Lee, group director of information technology, Kerry Logistics.
Blockchain represents more than just cryptocurrency, and is the future of logistics, especially when IoT applications are put to use, Lee emphasized. Lee added that Kerry Logistics sees it as the solution for ultimate supply chain optimization and is trying all means to be in the vanguard of this revolution. “The implication of this POC with Deloitte and CargoSmart is significant, as it defines a new agenda of the next digital age in our industry. The ones who set the ground rules will be the leaders for the next era.”
This project proved the network-to-network interoperability and demonstrated the cross-industry collaboration, agreed Lionel Louie, chief commercial officer of CargoSmart. A single source of truth simplifies the documentation process and accelerates the data exchange across multiple parties, creating a better end-to-end supply chain journey for users in the near future, said Louie.
For more information, go to www.kerrylogistics.com, www.cargosmart.ai, and www2.deloitte.com.