- Smart contracts possess vast potential to transform several sectors and the logistics industry is one of them.
- These self-executing contracts can automate various processes in the realm of logistics with a secure and simplified interface.
Blockchain-based smart contracts have the potential to simplify and secure many of the operations within the logistics sector. It consists of agreement terms, fraud detection, record keeping, payment services, cash flow, etc. These automated or self-executing contracts can result in reduced costs. This can be achieved by excluding the need for any intermediary’s intervention. Here we are going to discuss some of the innovative ways to combine smart contracts into logistics, supply chains, and transportation industries while improving business processes.
Ways to Integrate Smart Contracts in Logistics
Documentation of Shipments
Several blockchain-based platforms are being developed nowadays to facilitate the shipped material’s automated documentation process. ShipChain is one of these platforms which is developed specifically for transport and logistics organizations. By integrating smart contracts, it’s possible to make the shipments traceable from their source of origin to the end of the journey.
The system gets enabled right after the shipment leaves the production unit and gets delivered to the customer. All of its traveling information can be tracked and recorded in the blockchain’s distributed ledger and triggers smart contracts after the contract’s terms are fulfilled.
Tracking of Pharmaceutical Products
Pharmaceutical tracking can be done for companies that require the implementation of unit-grade tracking with medication traceability. One of the examples is the GlaxoSmithKline company. This company is way ahead of the curve as it abides by the new rules and regulations with a blockchain-backed supply system.
These features ensure quality control with third-party manufacturers and vendors having adequate products along with other advantages. Pharmaceutical companies are now collaborating with Ethereum-based supply chain platforms to carry out their operations with complete responsibility while adhering to new regulations.
Blockchain in Transport Alliance (BiTA)
BiTA is a pivotal resource for institutions related to transportation and logistics services. BiTA provides an open forum and education for industry folks and Web3-based enthusiasts who are interested in pursuing blockchain technology.
This helps to drive broader adoption of blockchain and technologies that integrate smart contracts to reduce the price range across marketplaces. It includes over 500 members across 25 nations that are looking forward to this technology’s integration into their systems.
Aspects of Logistics Industry
Smart contract-based logistics platforms have all the resources and components needed to dominate the decentralized market and are anticipated to remain crucial due to increased integration that makes logistics processing easier than before. This innovative approach is poised to streamline potential growth in the upcoming years because of affordability which could enable a diversified pricing plan.
Organizations are conducting experiments to integrate blockchain-backed smart contracts into their system to enhance traceability within the market to attract a wide range of users. Blockchain provides greater benefits including critical mass formation in Web3 to encourage new participants to join the logistics industry and harness the potential benefits. These organizations can track other participants and competitors to predict a specific time to launch a decentralized prototype.
Conclusion
Blockchain’s emergence has led to the wide-scale integration of decentralized protocols within several sectors such as education, business, healthcare, finance, and also the supply chain or logistics industry. Blockchain provides all the necessary components required to make operation methods seamless and easy. The features of decentralization make a supply chain system traceable and user-friendly, while it contributes to the increased traction of blockchain technology.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.