Kerry Logistics Network , Deloitte, and CargoSmart have successfully implemented a Blockchain solution for document exchange between forwarders and carriers.
The Hong Kong-based logistics company connected multiple distributed ledger technology (DLT) networks for a platform to enhance efficiency for the shipping industry worldwide by digitising document exchange between forwarders and carriers. the platform also improves the traceability of shipping documents.
Completed in December 2018, the platform’s proof-of-concept (POC) is interoperable across different DLT and cloud networks commonly used by participants in global trade and finance.
“At Kerry Logistics, we believe simple is beautiful. Distributed ledger is a technology that could simplify the complicated transactions in logistics operations,” says Wilson Lee, group director of Information Technology, Kerry Logistics. “When we eliminate redundant processes, we can bring new benefits to our customers and to the planet, which has always been one of Kerry Logistics’ beliefs.”
Lee highlights that blockchain is more than cryptocurrency, saying it is the future of logistics, especially when Internet of Things applications are put to use. Kerry Logistics sees it as the solution for ultimate supply chain optimisation and is trying all means to be in the vanguard of this revolution, he adds.
“The implication of this POC with Deloitte and CargoSmart is significant, as it defines a new agenda of the next digital age in our industry. The ones who set the ground rules will be the leaders for the next era,” according to Lee.
“A healthy logistics ecosystem is paramount in global trade, but complicated documentation has been a structural problem,” notes Paul Sin, Blockchain Lab leader, Deloitte Asia Pacific. “Document digitalisation is not just the first step, but also a groundbreaking step in the transformation of the logistics industry,” he says.
In addition to facilitating document coordination, DLT speeds up approvals, provides updated and secure data for informed decisions, and offers a source of truth for all participants, especially banks, insurance companies, and other financial institutions.
“We therefore expect even greater benefits from DLT applications for shippers, forwarders, carriers, and other players at large in the future,” Sin adds.
“Deloitte is grateful for the opportunity to help Kerry Logistics embark on the journey towards a more trustworthy, efficient ecosystem, leveraging CargoSmart’s connectivity with major carriers and terminals. This pilot project has proved that openness to cooperation and tech interoperability are pivotal factors for success, and we look forward to seeing more similar cross-industry collaboration in the DLT space in the future,” Sin adds.
Lionel Louie, chief commercial officer of CargoSmart adds: “CargoSmart is excited to work collaboratively with Deloitte and Kerry Logistics to bridge the gap between the shipping and finance industries by utilising distributed ledger technology. I
“In this project, we proved the network-to-network interoperability and demonstrated the cross-industry collaboration. With a single source of truth, it simplifies the documentation process and accelerates the data exchange across multiple parties, creating a better end-to-end supply chain journey for users in the near future.”