We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
Home » New kid on the block(chain)
fastlane

New kid on the block(chain)

October 27, 2017
Clifford F. Lynch
No Comments

As anyone who has attended one of the Council of Supply Chain Management Professionals' (CSCMP) annual conferences can attest, that's where you go to get schooled. For example, at this year's "CSCMP Edge" conference in Atlanta, attendees could choose from 100-plus educational sessions on topics ranging from supply chain finance and leadership to trucking regulations.

That's not to say all of those subjects commanded equal attention, however. As is often the case at these conferences, there was one topic that was discussed in sessions and hallways more than any other. This year, that topic was "blockchain."

Why is blockchain so hot right now? Part of the explanation lies in the technology's mystique. Even with all the press on the subject over the last two years, it's been a long time since we've seen a topic so often discussed, yet so poorly understood. The most common questions seemed to be "What is it?" followed by "What does it do?" Although those questions are simple enough, the answers are not. I attended a session at the conference titled "Blockchain 101," hoping to enhance my own understanding, but came away knowing only slightly more than I did before I went in. It doesn't help that the technology is based on the same complicated mathematical functions that brought us Bitcoin, Ethereum, and other digital currencies—subjects that can be even more confusing than blockchain.

As for what it does, proponents say blockchain can increase visibility in the supply chain (as well as other functions) by breaking each movement down into a "block" and documenting the transactions every time a shipment changes hands. Linking the blocks together creates a record of the details of each movement, and every party to the transaction has access to the information. An independent third party records and validates the information, and no party can amend anything without validation by the other members of the chain. Blockchain supporters claim that this visibility will save time, reduce costs and risk, and promote trust among the parties. Some go so far as to say it is as significant as the invention of double-entry bookkeeping. Skeptics suggest that it seems to be touted most often by vendors who stand to profit from its implementation.

With interest in blockchain running so high, it's no surprise that the subject has drawn the attention of industry researchers. The 2018 edition of the "Annual Third-Party Logistics Study," which was released at the conference, devoted several pages to the subject and suggested that "the goal is to create one version of the truth, link information, and create transparency." At the same time, the survey, which was conducted by Penske Logistics, Infosys, Korn Ferry, and Penn State University, pointed to widespread confusion on the topic, finding that 67 percent of users of third-party services and 62 percent of the providers did not know enough about it to draw any conclusions at this time.

That seems to be the case across the industry as a whole. While there has been considerable interest in and discussion of blockchain, most companies have been content to watch from the sidelines. That's not to say adoption has stalled out, however. Companies like Maersk Line, Walmart, and IBM are currently working on systems, and others will no doubt follow suit as understanding of the concept grows.

This is not the first new supply chain development to require a quick education, nor will it be the last. While the technology is complex, this should not keep us from embracing the concept, determining how it can help us manage our supply chains more effectively, and implementing the concept where appropriate.

For a good discussion of blockchain, see the "2018 Third-Party Logistics Study" or Fortune magazine's recent article on blockchain and cryptocurrency.

Supply Chain Services Publications & Associations
KEYWORDS CSCMP - Council of Supply Chain Management Professionals Infosys Korn Ferry Penske Corp.
  • Related Articles

    Direct-to-Consumer Retailers in the Kid, Toy, and Baby Space Love the Deck Commerce OMS

    New service from Jabil will analyze the impact of changes in trade, tax, and tariff policies on a company's supply chain

    New Guide to Complex Supply Chain Disputes Released on Amazon Authors Rosemary Coates and Sarah Rathke address supply chain and legal readership

Clifford F. Lynch is principal of C.F. Lynch & Associates, a provider of logistics management advisory services, and author of Logistics Outsourcing ? A Management Guide and co-author of The Role of Transportation in the Supply Chain. He can be reached at cliff@cflynch.com.

Recent Articles by Clifford Lynch

A New Solution for Some Old Problems

The time has come

The continuing saga of driver shortages

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • FedEx agrees to buy 10% stake in Berkshire Grey

  • The robots are here. Now what?

  • XPO says planned spin-off will be called RXO

  • No vacancy at the warehouse

  • Shippers, battling escalating packaging costs, look for answers

Now Playing on DCV-TV

B733ed1b 0136 43ce af0c 290a6166b91b

With a freight recession likely, should your freight costs be going down?

DCV-TV 4: Viewer Contributed
With recent reports that the freight market appears to be softening, I’ve received some interesting emails and calls from logistics executives. They've shared some questions they've fielded from other C-Level executives who have seen reports from consultants or news articles and now are asking: “Why haven’t our...

FEATURED WHITE PAPERS

  • Choose the Best Auto ID Technology for Tracking RTIs

  • 8 ways your facility can benefit from Hyster Reaction

  • Why Use RFID to Track RTIs

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing