- 15 March 2018
- Transport / Logistics Services
An Accenture led industry consortium has tested a blockchain solution that it says could “eliminate the need for printed shipping documents and save the freight and logistics industry hundreds of millions of dollars annually”.
The consortium comprises of AB InBev, Accenture, APL, Kuehne + Nagel and a European customs organisation.
In essence, blockchain is a shared, distributed ledger that can be used to record transactions and track assets in a tamper-evident, digital format. It allows multiple stakeholders to confidently and securely share access to the same information.
One of the key benefits of blockchain is that it can cut down on the huge amounts of duplicated documentation generated in a traditional supply chain.
In a statement, Accenture explained: “An international shipment of goods for companies in areas such as the automotive, retail or consumer goods industries typically requires more than 20 different documents, many of which are often paper-based, to enable the goods to move from exporter to importer. Across these documents, up to 70% of the data can be replicated. The document heavy approach limits data quality and real-time visibility to all parties involved in the trade and this can also delay the financial settlement on goods.”
According to Accenture, the new blockchain solution “can speed up the entire flow of transport documents, reduce the requirement for data entry by up to 80%, simplify data amendments across the shipping process, streamline the checks required for cargo and reduce the burden and risk of penalties for customs compliance levied on customers”.
Adriana Diener-Veinott, who leads Accenture’s Freight & Logistics industry practice, commented: “Our trials have proven the viability of a shipping process in which many documents can be replaced by secure and distributed data sharing with clear and defined ownership.
“This gives companies a significant opportunity to save time and money while improving their service to customers.”