The Chief executive officer of FedEx, Fred Smith, said at the 4-day blockchain Conference “Consensus” in New York, that the blockchain is the next determinant for the success of his company. From his own perspective, there is a whole sea of new opportunities, that are only available because of blockchains. This technology offers the world’s economic and financial systems, ample possibility for improvement. Concerning FedEx, this means blockchain implementation in the supply chain, transport, and logistics industries.
The world’s third largest shipping and logistics company is set to implement solutions to the freight industry problems by introducing a transparent and traceable chain that runs through the shipping and logistics company using the blockchain technology which Smith referred to as “The game changer“.
Prior to this event, in January, FedEx joined the Blockchain in Transport Alliance (BiAT), together with other companies, which are aimed at developing common standards around the blockchain technology, enhancing the customer’s experience and making it easier for customers to enjoy the companies’ services. According to BiAT, blockchain technology is highly preferred in the supply chain because of the potential to reduce transaction costs, coupled with the capability of speeding up processing and freeing up working capital.
FedEx’s CEO, however, emphasized that other companies which are not willing to keep up with new technologies like blockchains would be on the verge of extinction. FedEx doesn’t seem to be the only company using blockchain technology to solve freight problems as other companies like Wal-Mart and DeBeers have also researched and developed blockchains to track their products. “FedEx, having a long history of innovation in the logistics space is also experimenting with a small Bluetooth-based low-energy tracking sensor called Tron“, FedEx Chief Information Officer Robert Cater said at the conference.
The issue of modernizing supply chain structures has become a central focus of governments globally, as both Australia’s and the United States House subcommittees have been recently deliberating on how blockchains can be used in supply chain management.
Featured Image via BigStock.
