Resolving the Blockchain Paradox in Transportation and Logistics
Blockchain adoption by the transportation and logistics (T&L) industry has been slower than one might expect given the magnitude of the potential benefits. Adoption has been impeded by the very same obstacles relating to coordination and trust that the technology would help the industry to overcome. That, in es-sence, is the industry’s blockchain paradox.
By providing an immutable single source of truth and contributing to process automation, blockchain can help the T&L industry address many of its pain points. When used effectively with other new technologies, blockchain can promote such benefits as faster speed and improved traceability, which ultimately can drive substantial cost reductions and help relieve intense margin pressure. Companies may also be able to use blockchain to develop entirely new business models.
To resolve the blockchain paradox, T&L stakeholders must develop an industry-wide ecosystem that fosters trust and collaboration and promotes scale and interopera-bility. Each company must work with suppliers, customers, and even competitors to implement solutions that address its specific business needs.
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