Samsung has decided to implement blockchain to monitor international shipments. Song Kwang-woo, blockchain lead and vice president at Samsung SDS, told about his expectations of shipping costs slashing by 20 percent due to this technology.
The company has been testing the platform for import cargo registration for seven months and is now ready to extend it to all logistics processes. By the end of the year, Samsung intends to ship around 488 thousand tons of air freight and 1 million shipping containers by means of blockchain. This technology will allow the firm to reduce the time of shipment and decrease the number of documentation.
"It will have an enormous impact on the supply chains of manufacturing industries. Blockchain is a core platform to fuel our digital transformation," Song Kwang-woo, blockchain lead and vice president at SDS, told Bloomberg.
Turning to a blockchain-based system is hoped to allow the firm to reduce overheads, such as costly shipping documentation, and allow it to respond more quickly to market movements.
Samsung is not the only giant company who intended to use blockchain in the supply chain industry. Big names like IBM, NTT Data and Air France have been working on separate systems to bring efficiency and transparency to their networks.
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