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
