Blockchain in logistics is an essential part of the supply chain and transportation management. A report by the Envision Intelligence Agency indicates that the global transport and logistics market will reach 19.36 billion dollars in 2024. Although this seems to be a very lucrative industry, many companies are losing a significant amount of money and a percentage of their profits due to unnecessary costs, ineffective practices, theft, and cyber-attacks. Stolen, is-shipped, or mislabeled shipments alone account for about $50 billion in damage a year.

Players in the Programmable Economy in Logistics

Smart contracts are a new type of contract that is more than a digital contract and can be develop thanks to blockchain technology. A smart contract is an agreement that executes itself since the blockchain allows you to store self-executing. Contracts that can work autonomously and automatically.

The programmable economy is a visualization of the economy of the future. It antedates a shift in how value can exchange and how we choose to exchange it. So, for example, we might come to “value” a formerly monetized exchange or interaction in non-monetary ways—and vice versa. That’s why “an economy” in this context refers to so much more than simple financial transactions.

In other words, the smart contract is a software that runs on each of the nos of a blockchain network, so that due to some blockchain characteristics, the contract is verified within a distributed trust model, without the need for a third.

Inventory Tracking

Blockchain technology can build an efficient system that allows various companies to track their products even at micro-levels.

Who does it?

Several food retail companies have teamed up with IBM to develop a blockchain-based system that enables the tracking of food items. The alliance includes  Walmart, Nestle, and  Unilever, among others. Among others. This technology will allow the company to trace individual foods back to their farm of origin.

Walmart has already conducted two successful experiments with blockchain, tracking pigs in China and mangoes in Mexico back to their place of origin. Ambrosus is another company that uses blockchain for inventory tracking.

What are the Advantages?

What is fruit valuable tracking for? Recall the E. coli outbreak in the United States ten years ago, when spinach infected with the organism spread the disease. If a similar incident were to occur, it would be easy to identify contaminated fruit batches. Not all stocks should be destroy, only the infected ones. Time is crucial in managing incidents of this type and limiting the damage.

Improve Transportation and Shipping

The world’s freight companies, especially those that support international delivery, recognize the benefits of blockchain technology. This technology allows companies to track each item with a more straightforward logistics process.

Who does it?

Maersk, the world’s largest shipping container operator, has already tried blockchain. Together with the Dutch Customs Service and the US Ministry of the Interior, Maersk used this technology to track the movement of its cargo across international borders. They have also partnered with  IBM  to develop highly secure logistics systems that will change world trade forever.

What are the Advantages?

Transportation companies are expect to save billions of dollars by replacing existing logistics processes. In addition, the system will help reduce errors, improve delivery times, and enable fraud detection to reduce costs significantly.

Invoicing and Payments

One of the significant logistics challenges is the development of secure and efficient systems for invoices and payments. Blockchain has already shown us its ability to transact effectively by introducing cryptocurrencies like  Bitcoin and Ethereum.

Who does it?

Tally sticks have developed a blockchain-based platform that handles invoices and payments for logistics and other business activities. Based on smart contracts, it automatically sanctions a fee that corresponds to an invoice. Visa has also skipped on the blockchain bandwagon and launched its  B2B Connect payment service.

What are the Advantages?

The goal is to simplify international payments while ensuring security and transparency. It also provides that a fraud prevention system that minimizes errors is operational without an intermediary.

Verification of Authenticity

The use of blockchain in logistics is not only limited to companies. It also benefits the final consumer.

Who does it?

Everledger has leveraged the blockchain for the diamond industry by establishing the authenticity of the diamond’s origin. Answer questions from consumers and those in the diamond business using blockchain and cryptography to track diamonds.

What are the Advantages?

With over a million digitized diamonds, Everledger has improved the detection of fraudulent claims while building trust and credibility in the diamond industry. It also makes counterfeiting more difficult and tackles the traffic problem once and for all. Everledger is not content with diamonds alone but adds value to other avenues that work with high-value products such as quality wines.

Why Blockchain?

According to the World Economic Forum, blockchain addition can help remove stream chain barriers and increase revenue for logistics companies by about 15%. The use of blockchain technology allows businesses to save time and money by using proven smart contracts that automate the entire purchase/procurement process. In addition, by eliminating inaccuracies and fraud, blockchain can increase supply chain transparency and efficiency and eliminate paperwork.


The logistics industry is vast and complex. Controlling the supply of goods at different levels can be extremely difficult as the supply chain can go through many steps and geographic locations. In addition, this sector includes many documents and invoices, and if even one piece of paper is missing, the delivery of the product can be delayed.

Also Read: The Concept of Mobile Application Development or Business

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