UPS joins blockchain alliance
- UPS will join the Blockchain in Trucking Alliance in order to improve transactional efficiency and increase trust between parties completing transactions. Blockchain is said to be an immutable ledger in which two parties can see and verify all changes to a contract. That's the rationale for the move.
- The main reason UPS will join the alliance is to adopt blockchain for its customs brokerage business, as UPS is "one of the world's largest customs brokers," according to the press release.
- Not only is UPS another big-name company to adopt blockchain, but it's also one of the first 3PLs to implement the tech, and that's a big deal for shippers.
Just a month after Oracle announced the release of a blockchain-based software platform, the mammoth 3PL UPS announces the intent to join a trucking alliance for blockchain. Not only is this a growing trend among big companies toward blockchain, but it's also a signal to those companies' clients and customers.
The news means shippers with UPS will eventually be able to take full advantage of the new technology. Blockchain can make transactions more secure and transparent, which means less haggling over fees and fewer worries about cybersecurity.
"Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage,” said Linda Weakland, UPS director of enterprise architecture and innovation in a press release. “The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders."
UPS intends to use the technology for customs brokerage first, but the 3PL plans to implement the tech throughout all operations, according to the press release. In fact, UPS notes it believes the technology "could change many facets of global commerce."
The takeaway from that statement is pretty clear: a large, successful 3PL thinks blockchain is the future, so if they haven't already, competitors and customers should take note.
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