Samsung Electronics will use blockchain to manage the global supply chain.
According to Bloomberg News on April 16th, Samsung SDS executive director Son Kwang-woo said that Samsung plans to introduce blockchain technology into its 1 billion dollar global transportation system. It is saying that about 20 percent of the total transportation costs could be saved. The introduction of Samsung Electronics’ blockchain will likely have a significant impact on the manufacturing industry.
“The (blockchain) technology will not only bring tremendous impacts to the manufacturing industry’s supply chain, but also play a major role in advancing into the digital transportation strategy,” said a senior Samsung SDS official.
Blockchain technology is considered a breakthrough that changes the way transactions are recorded, verified, and shared. Gartner, a market research firm, predicts that blockchain related businesses will create $176 billion dollars of value by 2025.
The shipping industry expects that blockchain technology will reduce the time required to prepare and work on related documents. A global shipping A/S company that has automated its cargo transportation and paperwork shipping explained that the cost of documentation for container shipments is twice the cost for transportation.
Samsung SDS expects to handle 488,000 tons of air cargo and 1 million 20-foot-equivalent (TEU) shipping units this year.
“A blockchain system can help reduce the time lag between product launches and actual shipments, making it easier to respond to rival products and shifting consumer appetites in emerging markets like China,” said Cheong Tae-su, professor of industrial engineering at Korea University in Seoul.
“We will maximize consumer confidence by maximizing the efficiency and visibility of the supply chain,” he added.