The below is a Q&A with CEO of CargoX Stefan Kukman, a company making blockchain-based business solutions a reality in the supply chain.
1. Please explain to us how you see the supply chain changing in 2020?
The supply chain is embracing the digital future and blockchain technology is becoming a mainstream technology. Companies that are finally modernizing and digitalizing are not thinking about this process without at least evaluating the role of blockchain for their big picture.
The Chinese business world is expecting a big blockchain push, and this will drive competition forward in the USA as well, while Europe is always trendy with its strong strategic support for a public blockchain.
The divide between private and public blockchains is visible, yet there are projects that aim to bridge it.
2. How is CargoX keeping up with the pace of change?
CargoX is the first company in history that has produced a blockchain-based Bill of Lading. With our Smart B/L™ solution we have positioned ourselves as the leading blockchain solution provider for ocean shipping.
Now we are foremost trying to bridge the divide between private and public blockchains. For us, the public blockchain is the right strategic decision for companies that depend on trustworthiness, transparency, and reliability.
That’s why we were also the first in the world to produce a hybrid solution together with RoadLaunch – our Smart B/L™ solution has been integrated in their private blockchain-based RoadLaunch solution.
We also have good traction in the market, with shipping line operators such as G2 Ocean. Having as a partner the biggest break and bulk carrier in the world, which up till now has finished more than 25 pilot projects with a wide range of customers, has given us the confidence that we are on the right track.
3. How valid do you see blockchain in becoming the de facto method of business exchange in the supply chain?
Blockchain technology does indeed ensure a safe and secure document and data transmission channel in a distributed, public infrastructure.
In a world where cybersecurity is king, this is especially important. Corporations can use it to bridge the gap of distrust and to build trust among all business participants.
Banks, financial institutions, and exchanges are looking into blockchain-based asset exchange solutions, and there are pilot projects for almost every use case possible.
We are confident that blockchain will define a new era of digital business solutions, based on publicly sourced trust and transparency where needed.
4. What three things excite you most about the future of the supply chain?
The supply chain industry has in many regions skipped the digitalization trend and is lagging in the penetration of digital solutions.
As big data, blockchain, and artificial intelligence are on the rise in corporate environments, the big companies in the shipping industry are still rigid.
At the same time, freight companies are fighting low business margins and looking to optimize their business model with digital tools. This is where blockchain can provide a big difference.
The most important advantage of blockchain is that it unifies and connects the segment – as companies use it, it becomes their data ecosystem. It is impenetrably secure, yet with just the right amount of transparency to build trust.
Historically, we are at a breakthrough moment of transformation, one that is much needed to drive the development of business forward.
5. What are the three things that worry you the most regarding the supply chain?
The supply chain as the backbone of every industry is of immense importance of global economy. The key competitive advantage for players in the supply chain is to implement advanced technologies in their day –to-day business.
Two interesting facts from Forbes Insight research from 2018:
Two-thirds, or 65% of companies, say that there are tectonic shifts in logistics, supply chain and transportation processes throughout their industries, and
50% of respondents say that advancements in technologies are exerting a strong impact on their company’s logistics, supply chain, and transportation operations.
The rapid transformation of the supply chain is in full swing. What will happen with companies that are willing to embrace new technologies? A great analogy is the implementation of the internet. Early adopters of the internet 30 years ago are now conquering the business world.
CargoX with our blockchain platform is on the forefront of the digitalization wave and we are thrilled to be on the winning side of this transformative moment in history.