How Will Blockchain Impact the Logistics Industry?

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The UK logistics sector can be considered as a growth industry in the modern age, after enjoying one of its strongest years to date back in 2016.

In fact, nationwide industrial and logistics take-up totalled an impressive £99.2 million during these 12 months, showcasing an increase of 6% on the five-year annual average.

The value of this market could increase further in the near-term, particularly as Blockchain is introduced into the industry. Below, we’ll look at how the integration of this technology is likely to impact on logistics in the UK.

Blockchain will Create Greater Transparency

Throughout the logistics industry, firms are investing in technology that enables customers to track shipments in real-time. In fact, service providers such as TNT have made this a priority for years now, as technology has improved and customers have become increasingly demanding.

With this in mind, Blockchain represents a natural fit for logistics and the supply chain as its core attributes lend themselves to live shipment tracking and greater transparency for members.

As a decentralised public ledger, Blockchain provides a comprehensive, accessible and accurate log of every single transaction, and logistics firm can leverage this to provide detailed updates at every stage of the supply chain.

Blockchain Creates Accountability

On a similar note, Blockchain also has the potential to be a key driver of accountability in the logistics sector.

Not only can Blockchain be used to record even minor transactions in real-time, for example, but it also creates a chain of custody that attributes responsibility. As a result of this, the technology has the capacity to create full accountability within the supply chain, helping to drive efficiency and correct mistakes quickly.

This can translate into superior customer service over time, which is something that all brands aspire to across every conceivable marketplace.

Blockchain Bridges the Gap Between Brands and Consumers

It’s arguable that customers are becoming increasingly distrustful of brands in 2018, with around 36% of shoppers saying that they trust large companies to do what is right.

Blockchain can help logistics firms and brands to overcome this challenge, as the records that it keeps are decentralised and publicly accessible at all times. As such, they’re not at the control of a central body, meaning that customers who are tracking their parcel can fully trust the data they access at any given time.

This would be a huge boon for the logistics industry and its clients, who can leverage the natural advantages of Blockchain to deliver a much-improved service and lay the foundations for customer loyalty.