FedEx CEO Fred Smith has set out the logistics giants vision for the future as he told a recent conference in New York that blockchain is at the forefront of FedEx’s operations.
Smith said: “We’re quite confident that it [blockchain] has big, big implications in supply chain, transportation and logistics.
“It’s the next frontier that’s going to completely change worldwide supply chains.”
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Smith pointed out that if companies in shipping and logistics do not venture into the use of blockchain technology they will likely face “extinction”.
Blockchain is a permanent digital ledger that streamlines trade, but also allows multiple players along the supply chain to collaborate.
Collaboration has long been the call along the supply chain for both road, rail and sea, yet the varying companies along the supply chain have been unsure of sharing information and data to competitors.
This has led to a stalemate in which collaboration has been consistently called for, yet rarely delivered.
Blockchain promises to change all of that.
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By providing ‘blocks’ of private data along a ‘chain’, blockchain technology allows different elements along the supply chain to interact and share information without fear of competitors attaining key data insights.
The technology is already being investigated for use by several big name companies within the supply chain.