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BlockChain – Breakthrough for Vietnam’s logistics industry

BlockChain – Breakthrough for Vietnam’s logistics industry

Every industry is becoming more and more interested in blockchain. Not because of that resonance, Supply Chain also integrates with Blockchain technology to improve transparency and traceability while drastically lowering costs. Blockchain in logistics is the answer that will bring about clear improvements to help businesses become more competitive and operate more effectively.

Learn about Blockchain 

A decentralized database is what blockchain is first known as, and it serves as a means of storing data in blocks that are connected by encryption. This method for secure data transmission has evolved over time. Blockchain technology is built to withstand data change which  has unique features for data transfer. The information may be verified without an intermediate. There are numerous nodes in this system that can independently check information.

In the Blockchain, data cannot be altered. They are only included once all system nodes have agreed to include them. If a portion of the Blockchain system fails, there will be a problem. Then, for complete information protection, other computers and nodes will continue to operate.

Blockchain promotes the development of the Logistics 

With smart features, Blockchain application in the Logistics industry is indispensable. This is the technology that helps to stir up the logistics industry, not only the world. And in Vietnam, Blockchain also best meets the needs of the industry.

Blockchain – a breakthrough in Logistics and Supply Chain

Blockchain technology facilitates the acceleration of the transportation process in logistics. Thanks to autonomous operation and management, you can save a considerable amount of money and time. To manage the shipping process without errors, blockchain is entirely compatible with transportation management software. Manage product conditions like temperature, usage duration, and condition… Blockchain also contributes to limiting the costs incurred such as wharfs. The archives are public, transparent and clear.

Outstanding advantages of blockchain in logistics and supply chain

Currently, the logistics sector has a lot of shortcomings. Examples include expensive costs, challenging management, and transportation. In addition, tracking the status of products is incredibly complicated and fraud prone. Therefore, the use of blockchain in the logistics sector will adequately address these shortcomings.

Increase competitiveness with other businesses

Vietnamese transportation firms have not optimized their operations. The need for an intermediary stage in the transaction is what causes the high cost. Statistics show that blockchain technology has been used in the logistics sector. The logistics sector saves 38 billion USBs annually. Additionally, it expedited shipping.

Reduce the costs

The operation of Vietnamese transport companies has not been optimized. The high cost is because the transaction must go through an intermediary stage. According to the statistics, since the application of Blockchain technology in the Logistics industry. Logistics industry has saved 38 billion USB / year. It also helps to shorten the shipping time.

Transparency of product origin

Blockchain technology is the foundation to help Logistics companies test the best products. The company can easily trace the origin of goods, check the status of intermediate products. This helps suppliers promote the quality of their products. Brand enhancement for consumers. Prevent the phenomenon of exchanging products, stealing goods.

Automation in management and payment

In fact, about 10% of freight bills include incorrect data. Blockchain has smart contract capabilities that helps digitize letters of credit, ensuring that all stages are automated. Moreover, it helps to manage outsourced transportation operations. Plan a travel route, schedule the reception and management of internal vehicles. Accelerate the flow of goods thanks to high visualization, good predictability.

Moving goods from one place to another creates a supply chain that involves many organizations and many interactions. And the most important is the payment process, it is subject to fraud, errors and price manipulation. Blockchain can automate the payment process by creating invoices, payments and ensuring accuracy and timeliness, eliminating complicated paperwork and ensuring compliance with transactions, speeding up the process. overall. Streamlining processes and convenience in operations have helped companies quickly apply digital transformation, creating better work efficiency. 

Automation in management and payment thanks to Blockchain technology
Automation in management and payment thanks to Blockchain technology

Solutions to enhance the role of blockchain in Vietnam’s logistics industry

The application of blockchain in logistics industry can be said to be an effective arm. To better promote the role of Blockchain in Logistics. We need to consider many factors:

Increasing Awareness Blockchain in Logistics Industry

In the 4.0 era with the development of science and technology. There are many Blockchain systems that appear. Leads to the difficulty of unification of Blockchains. There are many groups setting up their own Blockchains to improve market share and profits.

This will be detrimental to the application in the transportation industry. Therefore, it is important to bring this technology to the transportation industry to raise awareness. Need to raise awareness for the community and businesses and build the best cooperative society.

Prepare in technology and infrastructure

One problem in the logistics industry in Vietnam is that there are too many processing stages. The delay in the network system as well as the connection between businesses. They take a lot of time and money for businesses. Want to improve competitiveness for Vietnam Logistics industry before the risk of being left behind. Closer distance with foreign logistics enterprises. The first problem is to cut costs.

In terms of infrastructure and technology, logistics organizations must be well-prepared, as well as data digitization and process automation. This serves as the foundation for companies to implement smart contracts. When adopting blockchain in the organization, there is transparency in the management process and information security.

In terms of infrastructure and technology, logistics organizations must be well-prepared
In terms of infrastructure and technology, logistics organizations must be well-prepared

The infrastructure linking with logistics businesses can have its capacity increased. Increased processing speed will result in increased work efficiency. For businesses, improving infrastructure is a possible approach. Data runtime will slow down if the infrastructure is not secure, resulting in a rebound effect

Well-developed processes and policies for Blockchain application

Blockchain is a technology of the future that any industry needs to approach. Especially the transportation industry. Logistics businesses have been implementing the Blockchain model.

Along with that is the application of the cloud-based model. It is still quite new in Vietnam. There are no specific policies and procedures for businesses. Therefore, it needs the attention, research and investment of the state. This is the driving factor for Blockchain technology in the logistics industry to promote its strengths.