In supply chain and logistics, blockchain is being used to create a more efficient and trustworthy system. By tracking the movement of goods and materials through a decentralized ledger, blockchain can help to reduce paperwork, speed up shipments, and reduce the chances of errors. In addition, blockchain can help to improve visibility and transparency throughout the supply chain, giving all parties involved a better understanding of where things are at any given moment.
In a recent article in Manufacturing Today, a fintech product head discussed some new developments in supply chain management. In this article the writer focuses mostly on logistics gains in India through the efforts of fintechs and latest gen tech. The piece discusses blockchain and where parts of supply chain management are being impacted. You certainly hear a lot about this issue given pandemic aftershocks and the looming recession, so this serves as a reminder that technology is in place to improve the end-to-end flow in the midst of the new order.
‘Indian highways are always filled with scores 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 dollars in 2025, with a CAGR of 10-12%….But the sector is majorly unorganised. It is on the brink of a revolution. At the same time, fintech is reaching far and wide and is soaring across all sectors. When fintech meets logistics, it has the potential to streamline the payment processes for logistics. Some problem-related areas for logistics companies are insurance, credit management, track and trace, invoices, inventory finances, and so on. Here are a few ways in which start-ups can use fintech to be a part of the ever-booming logistics industry:’
The author goes on to discuss blockchain specifically as a technology that has direct application in the supply chain and logistics space, something we have pointed out in member research for many years. This comes in the form of tracking shipments, contract management, financing options and the timing of payments thereof, which all form the logistics of moving goods from here to there efficiently. This is just another reminder that things are moving along in the logistics space, as trade has always been a key use case for blockchain tech.
‘Fintech is a continuously growing business. And logistics want to mature and change. Using fintech helps logistics companies streamline their processes with financial terms that work the best for them. The logistics industry is all about time – timely pickup, delivery, orders, and payments. Any delay in the same can cause problems in the entire process. Customers are evolving as well and expect better products and services. It is the responsibility of logistics leaders to fulfil these ever-changing needs. They need innovation and technology to move forward. They need the fastest-growing revolution of today – fintech.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group