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What is the application of Internet of Things and blockchain in supply chain logistics transportation? Many novices are not very clear about this. In order to help you solve this problem, the following small series will explain it in detail. Those who have this need can learn it. I hope you can gain something.

Logistics/supply is one of the largest industries in the world today. This is a common element in most international trade-moving goods from one place to another. The increasing demand for logistics in various industries and the increasing distribution and division of labor and goods around the world have made logistics an important part of modern human life, but at the same time they have encountered more and more challenges.

I. Challenges in logistics transportation

Individual links in the chain make transparency difficult

This vast and interconnected system of businesses, trade routes, shipping lists and legal systems is achieved through complex layers of computer technology and old-fashioned paperwork. It's an industry that is often shrouded in uncertainty and error, sometimes mistrust, and transparency is invaluable to all involved.

Companies involved in logistics and supply processes are rarely willing to share contract details, funding information or sales and supply data. This makes it difficult for companies to gain visibility throughout the supply chain. The lack of this high level of data transparency is ultimately a bad thing for businesses at both ends of the chain.

Lack of transparency makes true traceability virtually impossible

Using current standards, it is difficult for individual entities to track components in the supply chain. Since proper traceability of components sent through chains is not possible, a large amount of powerful information can be provided on the desktop that could otherwise be used to fuel big data and save money.

Obsolete technology is error-prone and cumbersome

A large number of logistics operations are still handled using traditional paper-and-pencil forms. These hardcopy documents can then be scanned or manually placed into the master database (if they exist). In many cases, even with more advanced computer systems, the software itself is beyond life cycle support. These methods are not only slow, but also have a high probability of error, and large-scale maintenance costs are extremely high.

Differences and different information from different entities in the chain lead to confusion

A lack of transparency and traceability, as well as reliance on often outdated technology, ultimately leads to a lack of appropriate information for decision-making. Different entities in the same chain reporting the same component can provide vastly different data depending on how they record it (and how accurate the data is), resulting in a lot of confusion that often leads to significant costs and headaches for businesses.

These problems can all be mitigated-or in some cases completely resolved-by introducing cutting-edge technology solutions designed to increase accountability, reduce costs, and ensure accurate data reporting at every point in the supply chain.

II. Benefits of the Internet of Things for Logistics and Supply Chain

The Internet of Things (IoT) provides a powerful solution to the traceability problem: asset tracking. As an emerging technology that finds more and more applications every day, IoT brings detailed component tracking and data collection tools that are not possible using traditional manual tracking methods. The potential applications of these tools are almost limitless. Since these IoT devices provide a lot of information, more improvements should be possible in the near future.

En-Route Asset Tracking Improves Transparency for Modern Transportation

One of the larger potential uses of IoT devices is devices that track goods and components throughout the supply chain. Using this technology, tracking no longer needs to be done manually-or not at all-but can be done through digital sensors from start to finish throughout the supply chain.

These types of tracking systems are already widely used in many other transportation-based industries, such as consumer package delivery. By leveraging them in a logistics environment, organizations can drive delivery times, bring transparency to logistics processes, and keep a close eye on goods moving along the chain.

For example, a real-time location system (RTLS) can determine the geographic location of cargo that may vary from vehicle to plant equipment. Typically, RTLS becomes part of the product, including wireless nodes (e.g. tags/badges); they send signals that are subsequently received by the reader. The foundations of modern RTLS systems include wireless communication technologies such as Wi-Fi, GPS, Bluetooth, Ultra Wideband and RFID.

IoT enables detailed inventory management and warehouse auditing

By using small sensors attached to materials or products, organizations can maintain accurate and up-to-date inventories at all times. These "smart inventories" can contain a lot of information about the products themselves, their previous locations, how long they've been in the facility, and more.

Using IoT sensors can simplify detailed inventory audits and reduce product loss, improper storage, or other issues that could impact overall revenue.

Analytics and Big Data are slowly transforming every business unit

Not surprisingly, information tends to be the more powerful tool in the business toolkit, and IoT enabled devices drive more data than ever before. By collecting large amounts of data from every step of the supply chain, organizations will be able to maximize efficiency and ultimately save time and money at almost every step in the chain.

The biggest emerging advantage here is that companies can be proactive rather than passive. By collecting data and analyzing it for emerging patterns, organizations can anticipate trends in data collection and proactively take steps to prevent problems, improve efficiency and increase revenue.

It is estimated that in the UK alone, inefficiencies in supply chain processes result in nearly $2 billion in lost revenue. Integrating IoT data analytics and tracking throughout the supply chain process will accomplish exactly the same thing as almost every other industry where it is applied-finding these inefficiencies and providing a path to solutions.

Intelligently connecting different individuals, entities and steps in the supply chain will inevitably lead to better, faster end-to-end logistics.

Blockchain use in logistics and supply chain

Blockchain is designed to solve the problem of transparency in the documentation of supply chain processes.

For those unfamiliar with the technology, blockchain can act as a distributed digital ledger of transactions. It's popular and well-known for applications that come in the form of cryptocurrencies, such as Bitcoin, but the idea of blockchain core can be extended to many more applications.

Blockchain is a decentralized method of recording and verifying information. Each time a new Block is added to the Chain, this information must be validated by each system or stakeholder involved in the Chain. This digital audit ensures that each block is accurately recorded and that the information contained in the chain cannot be modified by any single entity in the chain. It is also committed to ensuring trust and accountability.

The advantages of using blockchain for information recording are many:

Blockchain systems offer the flexibility to document almost every step in the supply chain process. From purchase to shipping and delivery, every step can be securely stored and recorded in the blockchain.

Cryptography will enable blockchain to replace paper assets and signatures with digital assets. This will allow businesses to save money and improve security, which will also increase customer trust.

Blockchain can be used not only to record information. Smart contracts can be used to validate services provided in end-to-end manufacturing processes.

Blockchain provides a high degree of information security and reliability, with each link in the chain guaranteed to remain unmodified at all times after creation.

Blockchain introduces a way to replace aging, interlocking systems of records with a unified source of logistics information that can be shared worldwide.

Blockchain has the potential to revolutionize the way information is exchanged in the world of logistics and supply chains, and there are already many large companies eager to delve deeper into the technology. One of them is Blockchain in Transportation Alliance (BiTA), which has about 500 member companies in more than 25 countries and total annual revenue of more than $1 trillion.

Logistics giant Maersk recently developed TradeLens, a blockchain-based logistics system in a joint venture with IBM that aims to be an open platform for global participation. Other companies have followed suit, and it's increasingly clear that the improvements blockchain offers will help the industry's future.

6 Ways Blockchain Can Change Logistics

1: Blockchain will trust data transparency

Confidence in the accuracy of information is currently a big issue in the logistics industry, and transparency can be made difficult by many companies 'demands to protect confidentiality among parties at steps in their chain. The implementation of a private blockchain enables each party involved in a transaction to have clear, decentralized access to important information during transportation. With a high degree of accuracy and uncompromising tamper protection, these modules in the digital ledger can provide controlled access to those who need the information contained therein. Basically, each party involved in a private blockchain has its own copy of the data, which cannot be changed or accessed by outsiders, so the transaction history remains transparent.

Smart contracts present a whole new way of creating, signing and fulfilling agreements

According to Craig Fuller, co-founder of BiTA, transportation payment disputes lock up about $140 billion a day. In addition, it takes 42 days to reach full settlement of the average invoice.

Smart contracts developed via blockchain are a secure way to automate legal agreements in logistics processes. The most famous platforms are Hyperledger Fabric and Sawtooth, where smart contracts can monitor every step in the process and check the rules specified in the code to ensure that each contract is completed.

These smart contracts can provide reliability to entities at both ends of the supply chain and allow smaller parties to participate in the process. For small start-ups, entering the supply chain is difficult without important references or strong reputations. Smart contracts can help alleviate this problem by ensuring that contracts are completed.

3: Use blockchain to protect information

Using traditional ledger systems, malicious attackers can access and alter stored data throughout the supply chain. Blockchain provides not only the accuracy of decentralized information platforms, but also checks and audits, as well as encryption tools to ensure that data is entered or modified in a secure manner. In today's connected world, the growing demand for increased security will require systems like blockchain to secure information.

4: Reliable permission-based access

Blockchain systems have methods of controlling access to information at various layers of the block itself. For example, contract data may be protected in such a way that only interested parties are allowed access to this information, while more general information such as shipment size or weight may remain publicly available. Controlling access to this information not only provides an extra layer of security, but also enables trust between entities in the chain and allows them to work independently of each other.

5: Blockchain can bring clarity to multi-stakeholder asset management

Using blockchain's digital ledger system, assets can be easily tracked and matched with claimants without any confusion about ownership. This permanent record provides a clear way to handle assets that are difficult to transfer and verify using current recording methods.

6: Blockchain provides scalable solutions for order management

Blockchain's almost unlimited scalability ensures that even the largest delivery tasks are not subject to blockchain-enabled bottlenecks. Especially with the rise of so many "same-day" delivery services, there is a high likelihood that traditional tracking methods will fall behind.

7: Real-time asset tracking based on blockchain and IoT

Blockchain, IoT and mobile technologies can be integrated into a powerful solution for real-time delivery tracking. Here's a possible example: The Raspberry Pi connects to the blockchain in order to retrieve GPS data from the AI-Thinker A7 GPRS / GSM module and send it to the Node.js API via the Caddy server. The project involves Python SDK and CLI tools, while the Sawtooth REST API is used to update the delivery state with new geolocation. In fact, any other IoT device can be integrated with this system.

Blockchain and IoT will soon transform logistics and supply chain industries

Modernizing the logistics and supply chain industries will have wide-ranging impacts on a global scale. By reducing overall costs and allowing entities in the logistics process to work with more individual agents, overall logistics will improve. These efficiency gains will ultimately lead to cost savings at each stage of the process. This shift isn't just coming-it's already happening, and the positive effects of this shift will continue to happen for years to come and resonate across the global industry.

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