The Blockchain Future of Logistics
In a recent article in Manufacturing Today, a fintech product manager discussed some new developments in supply chain management. In this article, the author focuses mostly on logistics gains in India through the efforts of fintechs and latest generation technology. The piece discusses blockchain and how parts of supply chain management are affected. You probably hear a lot about this issue given pandemic aftershocks and the looming recession, this serves as a reminder that technology is in place to improve end-to-end flow amid the new order.
“Indian highways are always filled with heaps of trucks, filled with goods being transported from one place to another. It is estimated that the Indian logistics market will grow to $380 billion by 2025, at a CAGR of 10-12%… But the sector is largely unorganized. It is on the verge of a revolution. At the same time, fintech reaches far and wide and shoots across all sectors. When fintech meets logistics, it has the potential to streamline payment processes for logistics. Some problem-related areas for logistics companies are insurance, credit management, track and trace, invoices, warehouse management and so on. Here are some ways start-ups can use fintech to be part of the ever-blooming logistics industry:’
The author goes on to discuss blockchain specifically as a technology that has direct application in the supply chain and logistics space, which we have pointed out in member research for many years. This comes in the form of shipment tracking, contract management, financing options and timing of payments for these, all of which form the logistics for moving goods from here to there efficiently. This is just another reminder that things are moving in the logistics space, as commerce has always been an important application area for blockchain technology.
“Fintech is a constantly growing business. And logistics wants to mature and change. Using fintech helps logistics companies to streamline their processes with financial terms that work best for them. The logistics industry is all about time – timely collection, delivery, orders and payments. Any delay in the same may cause problems in the entire process. Customers are also evolving and expect better products and services. It is the logistics managers’ responsibility to meet these ever-changing needs. They need innovation and technology to move forward. They need the fastest growing revolution today – fintech.’
Overview after Steve Murphydirector, commercial and corporate payment advisory service at Mercator Advisory Group
