Supply chains require alignment between transportation and a digital infrastructure. Many logistics companies utilize a Management Systems (TMS) to keep track of their shipments. As shipping requirements become more complex, TMS solutions need to be expanded to incorporate more features that provide faster responses to customers. The integration of blockchain can transform how shipping operations take place as well as how resources and capabilities are used in a safe way. Companies that choose to integrate their supply chain with emerging technologies like blockchain will secure their processes and increase visibility for more efficient overall operations.
What is Blockchain?
Blockchain technology creates a ledger that is encrypted for security but can be accessed and shared among members. The information can be controlled by what each member can see and the actions they can take. Blockchain creates enhanced security and greater transparency because each transaction is recorded identically in multiple locations allowing all members access to the same information at the same time. Blockchain also benefits businesses by reducing paperwork and overhead and transaction fees.
How Does a TMS Benefit a Company?
Many companies have chosen to implement a TMS, which is software that helps to connect a network of shippers and carriers throughout the supply chain. It is the main hub for transportation and shipping operations as well as the central organization for all logistical documentation. TMS software offers services like vehicle load optimization, route planning, carrier management, invoicing, advanced shipping and visibility as well as the following benefits:
- Collects significant amounts of data
- Reports and analyzes data
- Reduces freight expenses
- Helps in financial planning and strategy
- Provides freight negotiation
The use of a TMS enhances supply chain operations by increasing transparency, minimizing loss and damage while improving communication among all involved parties.
TMS and Blockchain
The combination of TMS and blockchain makes for a powerful shipping solution. Blockchain is a complex technology solution that creates a secure TMS. Since blockchain solutions are 100% cloud-based, having a high-quality internet security program is the best way to use blockchain. Because each record is encrypted and time- and date-stamped, blockchain prevents unauthorized activity and fraud. Used in conjunction with a TMS, blockchain creates an audit trail that documents every step of the process making for improved traceability.
Documentation can be stored on the blockchain along with transaction details. Transactions can be automated which increases the efficiency of processes. Once conditions are met, the next step in the transaction process is triggered, which reduces the need for a paper trail.
Where Blockchain and TMS Can Assist Your Supply Chain
There are several areas in which the combination of TMS and blockchain can increase the efficiency of your supply chain.
Cold Chain Management: Blockchain solutions provide significant improvements in cold chain management. Since supply chains have become digitized, blockchain improves the safety of operations, which is particularly important for food safety. The ability to track food improves transparency, and reduces delays. Blockchain and TMS can record the shipping activity of food-related assets such as trailers, pallets, and containers. It can also assist with documentation such as purchase orders, receipts, and order changes. This helps prevent contamination of foods and gives better access if a food safety issue is discovered.
Reduces Shrink: A damaged or lost product means a loss of revenue for a company. Blockchain technology paired with TMS can reduce the changes of lost shipments because of the visibility that is provided throughout the supply chain. Tracking software solutions cut down on shipping issues and missing shipments.
Streamlines Payments: The improved transparency that blockchain provides means there is no missing paperwork of shipments. Since every transaction is kept in cloud-based files, they can be accessed at any time, cutting down on errors. A TMS can automatically approve invoices by checking the invoiced price against the price listed in the system. It then sends the information to the next step in the process. It also helps to make the payment process more secure because blockchain is a safe solution. A TMS will reduce the amount of documentation that is kept in the system by utilizing automation.
Manages Inventory Optimally: Many companies hold inventory instead of running out of items. The higher the amount of inventory held, the greater the risk and higher the cost of holding. Safety stock amounts can be decreased based on a reduction in on-time delivery improvements. The reduction in the time it takes to transport goods will positively affect inventory.
The Verizeal Solution for More Efficient Shipping
Blockchain can be used to build networks between freight brokers forwarders, shippers, carries, and customers. The ability to track and trace increases the transparency across the entire supply chain. It also ensures the transfer of secure and correct information. Verizeal offers shipping solutions backed by blockchain for the highest level of data security. Get the benefits of an efficient shipping solution with the safety and trust that blockchain offers.