To say that the logistics industry is massive would be a massive understatement. Every year, 2.448 billion metric tons of goods are transported in the United States alone. $216.93 billion dollars were spent importing goods alone and that’s not even mentioning the cost of shipping or warehousing material goods.
Like every other industry in the digital revolution, blockchain technology is completely revolutionizing the logistics industry. 65% of business owners believe that the logistics industry is experiencing a fundamental shift. This is largely to do with the decentralization of technology such as blockchain.
Let’s take a look at the blockchain benefits for the logistics industry.
Blockchain Benefits for the Logistics Industry
Mistakes and inefficiency are particularly expensive when they deal with physical goods. This becomes exponentially truer when you factor in the cost of shipping and storing physical merchandise.
It has never been more important for businesses to be streamlined and efficient. It’s never been more important to remain competitive as it has been during the Digital Revolution.
Your business is essentially competing against every other company on Earth, or at least on the Internet. You need to cut overhead as much as possible to keep prices down.
Here are some of the main blockchain benefits for logistics transportation companies.
Blockchain Is Paperless
Processing and administration can account for up to 20% of the overall shipping costs. This is largely to do with over-reliance on paper and the cost of processing.
Blockchain help to reduce the cost of paper transactions. It’s also much faster not to mention more reliable. Blockchain technology makes sure that everybody is on the same page.
Speeds Up Processes
Over $140 billion in payments are frozen in dispute every single day in the logistics industry. This is a major headache, at very least. Smaller businesses often can’t go that long, waiting on payments.
The average length to receive payment is 42 days. Many larger logistics businesses can have millions of dollars in disputed payments. Your business could be out of business by the time you actually get paid.
Matches Supply and Demand
90% of trucking companies have six trucks or fewer. This can lead to a disconnect between the people who need to ship goods and the trucking companies. It is estimated that truck drivers travel over 29 billion miles, each year, with partial or empty truckloads.
Ensures Consistency
The logistics industry transports and stores a lot of delicate materials. This is especially true in today’s high tech world.
8.5% of pharmaceuticals experience temperature deviations during shipment. Many of these delicate materials never get where they’re going due to their sensitivity. This is particularly true during border crossings, where delays are pronounced.
These are just a few of the many blockchain benefits for the logistics industry. We’re going to keep finding new applications as decentralized technology becomes faster, cheaper, and more reliable.
Want To Learn More Blockchain Benefits?
To say that we are passionate and idealistic about blockchain technology is putting it mildly. This technology is revolutionizing every industry from the ground up.
Whether you’re looking to learn about blockchain benefits for the logistics industry or some other niche, you’ll be inspired and informed by our blockchain seminars. Check out the schedule for our next upcoming blockchain summit.