The Port of Rotterdam, Europe’s largest shipping port, is taking part in a Blockchain consortium which is focusing on logistics. The project has the support of more than fifteen public and private sector companies based in the Netherlands. XELLZ is going to add to this project by offering its expertise and know how in order to make Blockchain useful for Project Logistics Management as well.
Consortium members will spend the next few years designing and developing applications for blockchain technology in the logistics sector. There have been similar attempts in the past, but founders say, this blockchain project is unique because of its scale in the logistics chain.
So, what is Blockchain Technology?
A blockchain is a distributed database that maintains an ever-growing list of records called blocks. The information in a block cannot be altered retrospectively as each block contains a time-stamp and a link to a previous block. The nature of blockchains makes it function like a public, digital, distributed ‘ledger’.
The technology is relatively new having first been put into practice by Satoshi Nakamoto in 2009 as a core component for the digital currency known as bitcoins.
Since its debut, blockchain technology has had a disruptive impact on several industries. Financial technology was the first to start adopting blockchains, but its started to move into the logistics sector as well.
Blockchain Technology Can Benefit Logistics (?)
There have been several articles published online about the benefits blockchain technology can bring to the logistics and supply chain sector. Here are a few ways the technology can improve the industry.
- TRANSPARENCY FOR CUSTOMERS. For most companies, little is known about the use. As we at XELLZ would phrases it, “an almost incomprehensible network of transporters, storage and port facilities and air and ocean carriers stand between us and the services we use.”
“With blockchain technology, our customers will be able to see every part of the project logistics management within their projects. The network behind our company will no longer be hidden, allowing the customer to make better informed decisions during the project life cycle.”
- TRANSPARENCY FOR AUDITORS. Because the history of transactions is locked into each block, auditors will have an easier time understanding where tasks and resources have gone. This, helps supply chain leaders, such as project logistics executives understand how to make the project logistics management more efficient and productive.”
- GREATER SECURITY. The technology will enable supply chain companies to identify attempted fraud more easily.
“For example, an employee that goes into the system to change past events will alter the coding of the event. “However, the altered coding appears so differently that it would be practically impossible to not notice the change. This will allow companies to recognize the fraud and who initiated the change almost immediately.”
The two-year project undertaken by Port of Rotterdam will give insight into the scope of the benefits, but the technology has already shown promise. XELLZ is also looking into this project and how it can contribute to the development in project logistics management where transactional events are everyday practices.
With a world that is becoming more connected on a daily basis, blockchain technology will inherently develop into a symbiotic relationship with the Internet of Things and today’s advanced project logistics management and supply chain management systems.