Shipping and logistics behemoth FedEx is firmly turning to decentralized technology by implementing blockchain solutions into its core processes.
Global delivery giant FedEx is working with the Blockchain in Transport Alliance (BiTA) – a working group of leading freight, shipping and logistics companies coming together to develop and implement blockchain technology among everyday operations. First reported by industry publication FreightWaves, FedEx is specifically delving into creating uniform logistics standards for blockchain applications across the industry.
BiTA, which sees members such as UPS and SAP, is the blockchain consortium of choice for the trillion-dollar shipping and logistics industry.
Among BiTA’s founding members, FedEx is already undertaking several blockchain pilots with a focus on dispute resolution, according to FedEx Freight vice president for strategic planning Dale Chrystie. Blockchain tech could prove a key resource to enhance customer experience by providing secure and transparent data, he added.
Speaking to the publication, the executive went on to state:
“We have millions of records a day in our system, and we think of blockchain as a secure chain of custody that could transform the logistics industry. We believe it holds a lot of promise in that space and would streamline all that data exchange in a very secure way.”
The logistics and freight industry is particularly ripe for transformational disruption by blockchain technology. An immutable, real-time, transparent decentralized ledger could significantly bring down operational cost by increasing efficiency and quicker turnaround times for a faster supply chain process.
FedEx Services’ senior vice president of IT Kevin Humphries underlined the importance of delivering complete transparency to customers using the company’s freight and logistics services.
“And blockchain is opening the door to that by giving customers even more visibility to their package before it gets in our hands and after it leaves our hands.”
Humphries went on to confirm FedEx’s development of blockchain pilots to have a proactive ‘edge’ in understanding the technology before an eventual rollout across different platforms in the industry.