• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Blogs » Think Tank » Expanding the Supply Chain: Using Blockchain to Optimize Storage Capacity

Think Tank
Think Tank RSS FeedRSS

Warehousing / Data Management (Big Data/IoT/Blockchain) / Cloud & On-Demand Systems / Inventory Planning/ Optimization / SC Finance & Revenue Management / Supply Chain Visibility / Business Strategy Alignment / Quality & Metrics / Order Fulfillment / Warehouse Management Systems / Consumer Packaged Goods / E-Commerce/Omni-Channel / Retail

Expanding the Supply Chain: Using Blockchain to Optimize Storage Capacity

For companies looking to navigate the challenges of e-commerce, blockchain offers a solution.

August 28, 2018
Scott Nelson, SCB Contributor
Expanding the Supply Chain: Using Blockchain to Optimize Storage Capacity

As a result of rising e-commerce, the demand for global shipping is at an all-time high. Freight lines have been forced to increase staffing volumes by nearly 20 percent, and trucking companies and warehouse operators created more than 15,000 jobs in July alone.

Yet as the demand for cheap and efficient delivery of goods rises, supply chains are suffering the consequences of inventory pileups. With the world’s commercial storage almost at its limit, many companies have had to find new ways to combat rising costs, streamline time delays, and eliminate inconveniences in the supply chain. Blockchain, the decentralized technology backing most cryptocurrencies, might just be that solution.

Blockchain technology is a decentralized ledger of information that can be used to input data along the supply chain. Unlike traditional recordkeeping, blockchain ledgers are immutable, meaning that information can be added to, but not edited or deleted. For organizations liaising with multiple vendors, blockchain holds tremendous value by using metrics to optimize best practices in real time. It’s an innovation set to revolutionize the way that modern retailers understand manufacturing, optimizing the use of storage capacity by eliminating bottlenecks in the system.

Blockchain can provide three different, but equally important, solutions to this problem. Firstly, it can increase liquidity for stored resources by releasing much of the working capital currently tied up in the supply chain. Using smart contracts, businesses can form trusted relationships with intermediaries, creating frictionless trade between buyer and seller. With faster payments, companies can ensure that products aren’t held in storage for longer than necessary. No longer will they have to cut through excessive red tape in order to obtain their accounts receivable, because transactions will occur instantaneously.

Secondly, blockchain allows for the sharing and monetization of underutilized assets, including trucks, planes, and cargo ships. There is an enormous missed opportunity for corporations to utilize untapped resources from the larger network. Millions of square feet of warehouse space are under the control of companies that don't use it, and  thousands of trucks are carrying less than full loads. However, with blockchain technology, companies can form meaningful connections with third parties in a way that promotes fair and equitable asset sharing.

Finally, and perhaps most importantly, blockchain provides greater transparency for companies looking to expose vulnerabilities along the supply chain, allowing them to minimize communication lags between trade partners. Picture blockchain as a decentralized accounting system that automatically tracks storage capacity, delivery times, and product liabilities at the touch of a button. Here, employees at all stages of the corporate ladder can input verifiable information onto the blockchain, which can then be used to gain a more detailed picture about vulnerabilities in the system. Companies can then extrapolate this information to highlight red flags, and ensure that storage space is being maximized to the best of its ability.

Ongoing growth in e-commerce isn’t going anywhere anytime soon. Society’s focus on convenience is only going to increase, and companies will need to continue to expand their storage capabilities in order to keep up with the pace. The simple fact is that companies cannot build out their infrastructures in time, and need to find another way to increase efficiency before it’s too late. Instead of buckling under the the pressure, they should find new ways to rise to the occasion. Through blockchain, this is more than a possibility; it’s a reality.

Scott Nelson is CEO and chairman of Sweetbridge.

RELATED CONTENT

RELATED VIDEOS

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Sees Fast Rollout of J&J Vaccine; Astra CEO Defends Delivery Shortfall

    Coronavirus
  • West Coast Port Congestion

    Shippers Need Alternatives to West Coast Port Congestion

    Logistics
  • Mexico

    The Near-Shoring Trend: Will China’s Loss Be Mexico’s Gain?

    Logistics
  • Robotic automation

    Autonomous Supply Chains Are on the Horizon

    Coronavirus
  • Drugmakers

    Research Lays Groundwork for More U.S.-Made Drugs

    Coronavirus

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
Honeywell Intelligrated Infor Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Ports America
Purolator QAD Precision Red Classic
Riskmethods Snapfulfil TGW Systems
Transportation Insights Watson Land Company Westfalia Technologies
Workjam Yang Ming  
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing