So far, there have been a few studies exploring how blockchain technology could improve the freight industry and its supply chain. New reports indicate that UPS, one of the world’s leading shipping companies, has joined the Blockchain in Trucking Alliance, also known as the BiTA.
Alliance to work on standardized framework
The alliance, which was formed in August of this year, is actively working on development, adoption, and education in connection with a framework facilitated by blockchain technology. So far, 300 companies have applied to join the BiTA, with UPS being one of them.
According to an official release, UPS is now working on learning more about what the blockchain could do in order to facilitate a better logistics network. The release states:
“Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage,” said Linda Weakland, UPS director of enterprise architecture and innovation. “The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”
We also know that UPS is studying possible blockchain applications in the brokerage business. The company believes that this technology can help reduce bureaucracy by drastically reducing the number of paper-based processes that are plaguing the industry. Reportedly, the shipping giant is also trying to use the technology in order to increase the transparency of transactions between its customers and governmental customs agencies operating in countries throughout the world.
By creating new industry protocols for the freight industry, a number of benefits can be harnessed. These include cheaper shipping costs, reduced potential for fraud, quicker shipping times, solid records of all data, and more.
Based on everything that has been outlined above, what are your thoughts on the possible advancements of the BiTA, now that UPS is a member? Let us know your thoughts in the comment section.