“We’re quite confident that it has big, big implications in supply chain, transportation and logistics,” CEO Fred Smith said at a blockchain conference in New York on May 14.
“It’s the next frontier that’s going to completely change worldwide supply chains.”
Blockchain uses computer code to record every step of a transaction and delivery in a permanent digital ledger, providing transparency. The ledger can’t be changed unless all involved agree, reducing common disputes over issues like time stamps, payments and damages.
FedEx’s interest in blockchain and the Internet of Things are part of the company’s strategy to improve customer service and fend off competition, Smith said. FedEx is working with an organization called the Blockchain in Transport Alliance that is attempting to set industry standards for using the technology in transportation.
Blockchain has the potential to lower transaction costs, speed up processes and free up working capital, according to the alliance.
Timely, incisive articles delivered directly to your inbox.