Blockchain technology is fast emerging as one of the most transformative trends – and one that could redefine and reshape many of the existing systems and processes within the logistics industry, according to Kamogelo Mmutlana, CEO of Barloworld Logistics. Mmutlana explained that the blockchain was essentially a distributed ledger that existed in multiple nodes on a network, rather than in a single, centralised location. “This distributed ledger is shared through peer-to-peer networks on computers and devices throughout the world. “This means that the need for a third party to act as an intermediary, such as a financial institution, is no longer required,” he said, pointing out that by integrating this technology, the blockchain could enable a strong and secure exchange for shared logistics, coordinating a vast array of activities in a highly efficient way. Such activities can include sharing unutilised space in a shipping container or warehouse, or optimising truck fleets. Added to this, stakeholders can eliminate supply chain opaqueness by having a record of all logistics transactions in blocks. It can, for example, provide insights around drivers, routes and on-the-move goods and services. Furthermore, blockchain technology can yield important benefits with regard to B2B transactions – such as cross-border payroll processing and smart contracts. “Also, costly delays and losses due to missing paperwork will be avoided,” said Mmutlana. He cautioned that when it came to the actual implementation of this technology, stakeholders needed to ensure that the necessary levels of trust and understanding were in place.
This means that the need for a third party to act as an intermediary is no longer required. – Kamogelo Mmutlana
