Posted on July 31, 2019
In today’s world, managing the supply chain has become extremely complex. Most of the companies still use paper-based systems or traditional database management tools to manage trade and supply chain activities. Several individuals and entities are involved, but the same transaction might be available in multiple versions in different systems. Due to the lack of visibility and complexity in current supply chains, there is interest in how blockchains might transform the supply chain and logistics industry.
Blockchain-based digital ledger enables faster transaction with a lower fee and helps to eliminate fraud. Blockchain operates as a distributed ledger, storing and processing transactions across a network of computers. The technology creates a ledger of transactions that are transparent, unchangeable and decentralized - it does not rely on a 3rd party.
The United Arab Emirates (UAE) is making strides to become a leader in blockchain technology by hosting several pilot projects to improve industrial operations. The UAE officials launched the Emirates Blockchain Strategy, which aims to capitalize on the blockchain technology to transform 50 percent of government transactions into the blockchain platform by 2021. The blockchain technology will help to facilitate people to process their transactions that suit their lifestyle and work. By adopting this technology, the UAE government expects to save 11 billion AED in transactions and processed documents, as well as 398 million in printed documents and 77 million work hours annually.
The World Economic Forum forecasts potential savings from blockchain application in shipping to range from 20% of the total physical transportation costs, which would amount to 1 trillion USD in savings for global trade. Smart Dubai and Dubai Future Foundation have collaborated with IBM to work on blockchain projects aimed at achieving the vision of becoming the first city to be fully powered by blockchain by 2020, to make Dubai the happiest city on earth.
Contributor: Arshad Azad
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.