Platforms and Block-chain will transform logistics

The article speaks about how platform based business models in the field of logistics will
transform the business. In platform based model multiple stakeholders involving containers,
finance, fuel, transport, regulatory approval will coordinate with one another. New
infrastructure and technological advancements, transparency in logistics data and the never-
ending pressure to reduce costs have forced the industry to move to platform based business
model. This concept is similar to Uber, Ola or Rapido bike taxi- share or rent your vehicle
whenever it is available.

Sensor-generated data from physical assets such as delivery vehicles, containers and
warehouses adds to supply chain visibility. Also data created from ERP systems, inventory
pallets and shipping events can be added in block chain, thus providing better coordination
and can generate a sequence of activities. An example of this technology is TradeLens, a
block-chain based platform for managing global shipments. Events across the shipping life
cycle -credit checks, contract signing, arrival at port, and payment can be publicly recorded.
Smart contracts is possible because of transparency of data. Application Programming
interfaces (APIs) allows supply chain events to be stored centrally in real time. In this way
supply chain efficiency is continually optimized.

As ports, fleets, warehouses and containers are being connected, the value of these platform
increases, as partners can borrow resources from one another. This leads to faster end-to-end
shipment and route optimization. As different types of fleets and warehouses are connected,
the scope of use cases logistics platform can handle increases. For example handlings fruit
and meat and handling petrol can entirely be different, and each one requires different
specifications. As the platform handles more shipments, it learns which shipping lifecycle
events are more efficient and unreliable partners can be dropped out. Apart from Maersk,
SMEs are also turning to logistics platform to enhance value of their spare capacity.
Alibaba’s Cainiao, UPS’s Ware2Go and project44 connects e-commerce companies with
logistics companies leading to win-win situation for both the players.

It has been expected that Amazon may soon start autonomous platform-enabled solutions for
last mile delivery. It has been predicted that with the convergence of rich logistics data
streams and strong market forces will give rise to new platform business models in the
logistics, trade, freight and maritime industries. Certainly, it has risks, but, bigger risks if the
trend is ignored.