How Blockchain Technology May Revolutionize Modern Logistics Technology and Supply Chains

To anyone who has read anything about technology over the last two years, the words reliability and resilience sound synonymous with the concept of blockchain.

Technology has advanced by leaps and bounds over the last couple of years, and one of the most talked-about concepts is that of blockchain. This technology has the potential to revolutionize a wide range of industries, and one of the most promising applications is in the field of modern logistics technology. Here are a few ways in which blockchain and modern logistics technology may change supply chains as we know them:

1. Trust as a bottleneck

One of the biggest challenges in modern logistics is the need for trust. In the past, supply chains relied heavily on trust, and this trust was often a bottleneck. For example, you had to trust your drivers to behave properly on the road, and one of the biggest problems in the industry was that drivers often made a profit from the fuel. All they had to do was misreport the amount of fuel they needed and then siphon and sell the rest. This was quite lucrative for the drivers, but it also put you in a position where, as a company, you suffered many preventable losses.

This is no longer the case. First of all, modern fleet management systems provide more than just oversight—they literally analyze driving behavior and vehicle gas mileage in real-time. In other words, there’s no misreporting since reporting is no longer the responsibility of these drivers.

Reporting is, in general, completely automated with these new systems and with the right fleet work order template, everything is more systemic and dependable. In addition, the system now operates on a blockchain, which means that the files cannot be tampered with.

In a way, blockchain technology helps create a trustless environment in the logistics industry. This doesn’t mean that there will be no trust; it means creating an environment where trust is not necessary (you can do without it).

Now, this entire process is automatic; everything is transparent, and, most importantly, every report is completely trustworthy. Everything is as reported.

Not only is this a great safeguard but it also plays into the psychology of all the participants. People are far more honest when they know that they’ll get caught if they attempt anything.

2. Switch to electric fleets

Another great change is the introduction of electric fleets. This change brings much greater innovation in logistics technology than one might assume at first.

First of all, electric vehicles have reached their pinnacle, and one of the aspects that are now advancing the fastest is their software. The best example of this is the Elysia battery intelligence by Fortescue, which represents a quantum leap in battery software.

These apps are far more accurate in estimating the performance and energy consumption of these electric vehicles, and they help elevate the maintenance and efficiency of your fleets quite drastically.

With more accuracy and greater insight, you’ll finally be able to solve one thing that’s seen as the biggest EV problem—range anxiety. By knowing exactly how much you can travel with a full battery, you’ll have an easier time trusting your fleet.

One challenge and technological innovation that’s also worth addressing when it comes to electric fleets is the use of scheduling software. Namely, charging is always an issue since, while fueling takes minutes, charging will take hours. This is why making a proper charging schedule might be one of the most important tasks of a modern fleet manager.

Ultimately, by understanding the health and condition of your battery better, you’ll have an easier time programming optimal charging. This way, you’ll prolong the useful life and performance of the battery, which results in a far better net result.

Remember, scheduling and maintenance all translate into the efficiency of your supply chain and logistics. With the right software and software integrations, you can make this so much easier.

3. Supply chain finance

Your supply chain exists only in the broader context of your business, which means that every delivery is tightly intertwined with a specific financial process. Blockchain technology can drastically reduce the risk of fraud. This is especially important for stakeholders who want as much transparency as possible. In that way, the blockchain ecosystem has the potential to completely revolutionize finance as we know it.

Second, it’s important that you address the risk of real-time transaction sharing among all the parties involved. With the blockchain, all information is available in real-time, so there’s no need to engage in a lengthy process of data verification.

By reducing this need for more paperwork and red tape, these blockchain-based supply chains will have a simpler structure with a drastically reduced operational cost. A lot of these processes will be self-executing (something we’ll address in the next section), which will also make the processes quicker. Even outside of the cost-saving, speed is the name of the game in the supply chain industry.

While all of these advantages seem quite impressive, the difference that they’re making can best be seen in scenarios with cross-border transactions. International trade is the backbone of the modern global economy, but it’s also slow and disrupted by bureaucracy. With the help of blockchain-powered supply