The State of Blockchain Logistics in 2018: From Governments, to SAP and Morpheus.Network
Governments and businesses have begun to use blockchain based solutions to streamline and improve performance across various market supply chains.
From Kerala, South India’s implementation of decentralized protocols across primary industries milk and fishing – to the operations of organizations such as PwC, which earlier this year implemented a ‘blockchain supply chain solution’ in partnership with government authorities (the first of its kind in the country).
It begs a series of questions, such as:
- Why are the logistics and supply chain sectors are displaying such a pro-active interest in decentralized technologies?
- Will the intervention of government and large traditional business prove to be a positive or a negative thing for the relationship between logistics and cryptocurrency?
Traditional Tech Meets Start-ups
Business management services and solutions provider SAP is one of the latest international corporations to get involved with cryptocurrency. The ‘SAP PartnerEdge’ program facilitates over 10,000 partnerships as of 2010, from
“Independent software vendors (ISVs) and value-added reseller (VAR) partners, to service, software, and original equipment manufacturer partners, to distributors and training and hosting partners”
One recent example of this is logistics orientated BaaS platform Morpheus Network which announced that it was joining this scheme at the end of September 2018. Morpheus Network seeks to supersede existing solutions by using blockchain to create a global automated “supply chain platform with an integrated cryptocurrency payment system”.
This just one story among a handful of recent Morpheus news which also includes the on-boarding of new team advisor Roger Crook (former CEO of DHL). Additionally, CEO Dan Weinberger attended the semi-annual ‘United Nations Economic Commission for Europe’ this October, where he delivered a speech on how blockchain can contribute to the enhancement of transport and logistics.
Why Is This Important?
I wrote about the current state of logistics and supply chain sectors earlier this year in an ICO Analysis piece on a project called Productivist, and my consensus and perspective remains very much the same to this day.
These industries are continually seeing upgrades in efficiency and extent of automation along with the manufacturing operations which fuel the supply chain which are collectively facing what many are calling ‘Industrial Revolution 4.0’.
This term describes a deficit in performance versus expectations and requirements on behalf of the customer; in light of increasing technology, automation, and internet of things. Blockchain only represents a convergence of these issues, as well as parallels that can be drawn with the finance sector.
Partnerships such as Morpheus and SAP, are also significant because they represent a relationship between traditional industry and blockchain innovation. Other notable proponents of blockchain from traditional commerce include De Beers, which utilizes the technology to track and trace diamond assets; and Walmart, which does the same for food products.
Blockchain, like it has for finance, ticks all of the boxes with regards to the service requirements of both customers and clients in logistics / supply chain: including immutable and public record-keeping, instantaneous and cheap transactions, smart contract enabled automation, and more.
Featured image courtesy of Shutterstock.