How Blockchain Is Revolutionizing the Logistics & Transportation Industries.

 

Blockchain technology is improving transportation and logistics, making companies more efficient and profitable by improving workflow!

The problems blockchain are addressing.

From dispute resolution to administrative efficiency and order tracking, blockchain has the answer to the problems that have been plaguing the transportation industry for decades. 

Let’s explore some of these issues.

• Every day, there are billions tied up in disputes for payments in the transportation industry.
• Processing and administration costs have risen to as high as 18% of transportation’s overall costs, due to over-reliance on paper transactions and out-date technologies.
• 89% of trucking companies have six trucks or fewer. This causes the industry to struggle with matching shippers (demand) with carriers ( supply).

How blockchain enables efficiency and cost-saving in business operations for the Industry.

Let’s explore the ways blockchain technology is already improving the industry:

• New Blockchain-enabled platforms will allow easy coordination of documents on a shared distributed ledger, making physical paperwork largely unnecessary.
• By using smart contracts, approvals and customs clearance can be quicker and more efficient, reducing processing times for goods at customs checkpoints.
• Organizations need updated, secure and authentic data to make decisions. Blockchain ensures trustworthy data across the transportation and logistics ecosystem, since the entire network contributes to data validation.
• With rising demand for same-day and one-hour delivery services, traditional tracking technologies will not scale. Blockchain technology provides a scalable, immediate solution for order tracking and authentication.

Is Blockchain And the Logistics Industry a Match Made In Heaven?

Companies in the logistics and transportation industry sink or swim based on their ability to adapt to consumer needs, and implement new technologies that help them increase efficiency and lower the costs of shipping.

In the past year, blockchain technology has emerged in the world of trucking and logistics as a solution to some of the major inefficiencies that have plagued the industry for decades.

But there’s one problem:

For most business owners, blockchain is no more than a buzzword, and its applications can be obscure and difficult to understand.

It’s all over the news and it seems to be taking over and revolutionizing every industry.

But what is blockchain technology? And more importantly, how can it be applied to the transportation industry in a way that benefits both business owners and consumers?

In this post, we’re going to explore how blockchain addresses some of the major issues in trucking and is set to revolutionize the industry.

Why Has Blockchain Crossed Into the World of Transportation and Trucking?

20 years ago, if you were to tell a trucking expert about the amount of innovation that would hit the trucking, logistics and transportation industry over the next two decades, they would be ecstatic.

If you were to tell that same expert the level of demand for same day shipping and the volume of online transactions leading to expedited delivery, they would be speechless.

The industry has come a long way.

Technological and procedural developments in logistics have bolstered the transportation industry’s ability to efficiently service an all time high in demand — all while adjusting to an evolution in consumer preferences and expectations concerning delivery time and cost.

Even so, the trucking industry is far from perfect.

And that’s where blockchain technology comes in to save the day.

 

Let’s explore some of the key areas in which the industry struggles in terms of efficiency, cost and service to the end user.

Opportunities For Improvement In The Trucking Industry

Transportation Payment And Dispute Resolution

Every day, there are billions tied up in disputes for payments in the transportation industry. To put things into perspective, that’s equivalent to the GDP of a small country.

For an average invoice, a company must wait 45 days on average before receiving payment. Many businesses have millions of dollars tied up in their accounts, which they could be using to advance their business, improve delivery times and better serve end users.

Administrative Costs

Processing and administration costs have risen to as high as 18% of transportation’s overall costs, due to over-reliance on paper transactions.

IBM and Maersk performed an experiment where the companies tracked a shipping container of flowers from Mombasa, Kenya, to Rotterdam, the major port in the Netherlands.

They found that just a simple refrigerated shipment went through more than 30 different organizations and required over 200 separate communications. Any lost form or delayed approval could hold up the container in port indefinitely, or get it lost altogether.

LTL Inefficiency

90 percent of trucking companies worldwide have six trucks or fewer. This causes the industry to struggle with matching shippers (demand) with carriers (supply).

Due to this issue, it’s estimated that truckers drive 29 billion miles per year with partial or empty truckloads. In case you were curious, that’s equivalent to just over a million trips around the full circumference of the earth.

This inefficiency in consolidating LTL loads costs trucking companies millions of dollars every year. It also raises shipping costs for consumers

Next Generation Load boards...

Laaimylorrie.com is a Southern African-based transportation and logistics networking company. The company’s primary goal is to connect transporters and freight forwarders in the Southern African business community. Laaimylorrie.com was launched in 2011 by Andre Klynsmith and Alex Silheu, who aimed to bridge the gap in the transportation and logistics industry in Southern Africa.

Laaimylorrie.com offers a comprehensive online business directory that allows transport and logistics service providers to list their businesses in various categories, including bulk transport, car hire, courier service, emergency services, sea freight, truck sales, and many more. The directory increases businesses’ visibility and exposure, which helps to establish them as trusted and reputable providers of transport and logistics services. Potential customers who find a business on Laaimylorrie.com’s directory are interested in the services offered, which leads to increased potential leads.

Laaimylorrie.com’s freight quote request system allows customers to request quotes from relevant service providers listed within the business directory. This system saves customers time and effort in finding the right service provider and sends out RFQs automatically to all businesses listed within the relevant category, ensuring that businesses do not miss any potential leads.

Laaimylorrie.com is researching blockchain development and integration into its platform and fleet management system. Blockchain technology can provide enhanced supply chain visibility and real-time information on the location, status, and condition of goods. The technology can improve traceability and compliance and create an immutable record of every transaction and movement of goods. Furthermore, blockchain technology can facilitate faster and more secure payments in the transportation and logistics industry, enhance collaboration and efficiency by enabling stakeholders to share data and information in real-time, and improve security by providing a secure and tamper-proof record of all transactions and movements of goods.

The adoption of blockchain technology in the transportation and logistics industry requires collaboration between stakeholders, standardization of processes and protocols, and investment in infrastructure and training. Laaimylorrie.com aims to provide this technology to its users, enabling them to take advantage of the benefits of blockchain technology in their operations.

Laaimylorrie.com also offers a range of other services, including fuel management and trip planning, vehicle tracking, driver management, and other fleet management services. These services help businesses optimize their operations, reduce costs, and increase efficiency.

Laaimylorrie.com also provides training and development programs to help businesses enhance their skills and knowledge in the transportation and logistics industry. The programs cover a range of topics, including compliance, safety, and security, and are designed to improve business operations and profitability.

Laaimylorrie.com is committed to providing its customers with the best possible service and support. Its team of experts is available to assist customers with any questions or concerns they may have, and the company is continually investing in new technologies and services to ensure that it remains at the forefront of the transportation and logistics industry in Southern Africa.

In conclusion, Laaimylorrie.com is a transportation and logistics networking company that connects transporters and freight forwarders in the Southern African business community. Its online business directory, freight quote request system, fleet management services, and training and development programs are designed to help businesses optimize their operations, reduce costs, and increase efficiency. Laaimylorrie.com is also researching blockchain development and integration into its platform and fleet management system, which will enable users to take advantage of enhanced supply chain visibility, real-time information on the location, status, and condition of goods, faster and more secure payments, improved collaboration and efficiency, and enhanced security. Laaimylorrie.com is committed to providing its customers with the best possible service and support and is continually investing in new technologies and services to ensure that it remains at the forefront of the transportation and logistics industry in Southern Africa.