C ryptocurrencies may be controversial to a lot of people, but the underlying technology is one of the most discussed topics in a wide range of industries. The intrinsic security and immutability make blockchain technology attractive to companies that rely heavily on record keeping.
According to Samsung SDS Co. Blockchain Vice President Song Kwang-woo, they are planning to launch a blockchain platform to manage and keep the track of their logistics and global supply chain network.
Speaking to Bloomberg, Song Kwang-woo said that blockchain will have a huge impact on the supply chains of manufacturing as it is a core platform for fueling digital transformation and the system could slash shipping costs by 20 percent with Blockchain technology.
He also confirmed that SDS is working on developing the blockchain platform for Samsung Electronics, placing it among the most primitive global manufacturers to acutely explore the applicability of blockchain technology at such a scale.
SDS has experience in using blockchain technology for the shipping and logistics industry, effectively closing a 7-month pilot project to document and track shipping logistics of exports and imports in Korea’s gigantic shipping industry in December 2017.
The report suggests that SDS is looking forward to handle 488,000 tons of air cargo and 1 million 20 foot corresponding (TEU) shipping units in 2018. The shipments incorporate everything from flagship Samsung devices like the Galaxy S9 and the forthcoming Note 9, as well as OLED displays which are used by Apple’s iPhoneX.
Apart from tracking shipments, a blockchain platform could even reduce the time and increase efficiency between the launching of a product and their shipments to end users.
Delivering Blockchain Tech
While details of Samsung’s using the distributed ledger technology remain lean for now, Samsung SDS has expanded and organized ‘Nexledger’ which is its own blockchain platform for enterprises and businesses over a year ago.
According to the professor of industrial engineering at Korea University in Seoul, Cheong Tae-su, lowering delay times can help Samsung counter to rivals and new products which is a vital quality in an increasingly competitive market.
“It cuts overhead and eliminates bottlenecks,” said Cheong. “It’s about making the most out of supply effectiveness and visibility, which converts into greater consumer confidence.”
Presently, so much is at stake in both the commercial blockchain and crypto mining worlds. Firms like Walmart, Foxconn, IBM, and Maersk have started testing the waters and are all trying blockchain technology to restructure their logistics networks, which can lead to the savings of billions of dollars.
Blockchain execution for manufacturing firms goes beyond just saving money as it also affects customer satisfaction by reducing the time span between when a product launches and ships to the customer. This keeps the customer happy and gives the company a competitive edge over its rivals. Samsung is setting itself up to get in on the action on both fronts.