Web3 And Logistics Industry: How Web3 will change the Logistic
December 27, 2022
The shortcoming in web2 is the biggest reason behind the worldwide adoption of web3 and its related technologies. With important data being stored on centralized servers, web2 puts enterprises and users at risk of a single-point failure. System administrators managing these centralized servers can extract the data stored for profit. Web3 technologies can potentially empower industries, and the Logistics industry is among them.
Web3-powered supply chain management can provide the logistics industry with effective data storage solutions, enhanced cooperation, and transparency at every business level. The amalgamation of web3 in the logistics industry paves the way for smooth data sharing among stakeholders and brings transparency within the ecosystem.
If you own a logistics company, you can understand how complex the entire shipment process is, from product movement from the warehouse to final delivery at the customer’s doorstep. For a smooth movement of products, various parties, such as manufacturers, warehouses, packaging, logistics, delivery agent, and customers, need to share information in real-time that was otherwise impossible. web3 powered supply chain management proves to be handy. Integration of web3 technologies within the supply chain system enables seamless tracking of products from start to endpoint, i.e., the customer's doorstep. Next-gen technologies ensure free real-time information sharing, thus eliminating data silos within various parties.
Join hands with RisingMax Inc. to leverage the true potential of web3 technologies for your logistics business. Connect with our experts to understand how to integrate web3 solutions within the logistics industry. Prepare your logistics business to be future with the top web3 services provider in NYC, USA.
Facts and Stats Related To Logistics Industry
Fifty-three percent of the respondents stated that they expect blockchain to change the industry. (Statista)
Forty percent of supply chain leaders stated they intend to invest in blockchain and IoT sensors. (Statista)
The U.S. retail logistics market size was valued at USD 43.17 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.0% from 2022 to 2030. (grandviewresearch)
What Are The Challenges That The Logistics Industry is Facing Today?
A closer look at the operations of the logistics industry will show you how broken the entire system is in many ways. During the early stages, there were fewer challenges with the logistics industry as the commerce was local. With the globalization of commerce, the entire logistics industry has become incredibly complex and in dire need of innovation. Although, over the years, the logistics industry has been evolving, compared to the rapid globalization in commerce, it is still lagging.
From manufacturer to supplier and customer, all depend on the logistics sector for the swift movement of goods and services. The shift from hauling freight via trucks or rail to air transportation has played a major role in logistics and supply chain management innovation. But, there is no doubt that lack of transparency and data silos are still some of the major challenges for the logistics sector.
Challenges For The Logistics Industry is Facing Today
Lack of transparency within the logistics industry makes it difficult for a buyer to know the real value of the goods.
Keeping a cap on suspicions or illegal movement of goods is extremely difficult in the current logistics sector.
The lack of seamless data sharing makes it difficult for logistics companies to know which buyer needs what, when, and how.
Direct or indirect involvement of multiple stakeholders makes the entire logistics sector more and more complex.
The effectiveness of the entire logistics industry is impacted due to data silos among various stakeholders.
Effective tracking of goods from shipment to delivery is quite challenging. Combining it with a huge number of shipments worldwide makes it more complex than ever.
The lack of effective tracking of goods makes it challenging to plan scheduled delivery timeframes.
All these challenges make it inevitable for the logistics industry to move from a centralized to a decentralized system, i.e., web3. Integration of web3 technologies allows the logistics sector to address these challenges and make the logistics sector more efficient.
How Can Web3 Powered Supply Chain Management Change The Logistics Industry?
Web3 in the logistics industry can create a decentralized ecosystem where different direct or indirect stakeholders can track real-time location, price, date, and another shipment status without any hassle. The decentralized sharing of data enhances transparency within the logistic sector ecosystem and enhances the overall traceability of goods. Let’s dig deep into the topic to understand how web3 technologies can revolutionize the logistics industry;
Efficient Goods Tracking
Integration of web3 technologies in the logistics sector enables easy tracking of goods right from warehouse to customer. The decentralized sharing of information makes it easy for all parties involved to track good's movement in real time. As shipment-related data is stored using blockchain technology, there is no need for logistics companies or firms to worry about data manipulation or tampering.
With improved freight tracking and real-time data analysis, businesses can move forward for planned/scheduled delivery. Planned delivery allows businesses to streamline the entire manufacturing process and other interrelated processes for enhanced efficiency. Businesses now have the option of same-day delivery or two-day delivery by integrating web3-powered supply chain management.
Businesses involved in logistics operations understand how difficult it is to maintain the right paperwork for the shipment. Keeping shipment records creates a load of paperwork, such as invoices, receipts, payment records, and others. With blockchain-based smart contracts, logistics companies can reduce the paperwork and automate the entire payment and processing process. Smart contracts eliminate the third parties involved in the shipment, thus reducing processing time, timely payments, and data management.
Tracking Logistics Company’s Effectiveness
Businesses can leverage real-time data to track the effectiveness of the partner logistics company. With this, they can track the delivery effectiveness of a logistics partner company or a particular vehicle in a fleet. This data analysis can be later used to find the shortcomings in the system and enhance the overall supply chain efficiency.
Integrated IoT Devices
Logistics firms and businesses can enhance the system's overall efficiency by integrating IoT devices for effective monitoring and analysis. The shipment data collected using various integrated IoT devices can be analyzed later to enhance the overall system efficiency.
Creating a Transparent Ecosystem
Integration of web3 technologies in the logistics sector assists in creating a transparent ecosystem for all parties involved. Buyer, seller, and supplier have information about the exact origin of the product, real-time location, and expected delivery date. This real-time information can be leveraged to streamline interrelated business processes and enhance the overall efficiency of business processes.
Eliminate Counterfeit Goods
Counterfeit goods can be easily identified with the integration of web3 in the logistics industry. Imagine its implication in the pharmacy logistics system where low-quality raw materials can result in the ineffectiveness of medicine or have fatal results. A transparent supply chain ecosystem makes it easy to identify counterfeit goods, thus creating a secure logistics system.
The amalgamation of web3 in the logistics industry opens up new unexplored opportunities for businesses around the world. Leveraging these cutting-edge technologies allow the logistics sector to effectively address the pain areas and enhance overall efficiency.
Integration of Web3 in the logistics industry is becoming an effective tool for addressing existing problems and enabling them to be ready for the future. Web3 in the logistics sector is the future that will pave new growth opportunities for logistics businesses worldwide. Adopting web3 technologies, such as Cloud logistics, AI, blockchain, and the Internet of Things, will enhance the efficiency and transparency of the logistics sector.
As a leading web3 development company in NYC, USA, RisingMax Inc. experts are assisting businesses in different verticals with our bespoke software solutions. Here’s why you should choose us to transform your logistics business.
Unmatched web3 development expertise.
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Affordable, Reliable, and secure web3 business solutions.
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24*7 customer support.
Start your logistics business transformation journey with RisingMax Inc. today. Connect with our experts to find out how you can integrate web3 technologies within your logistics business processes and offer unparalleled services to your customers. Click here to schedule a FREE consultation call with our web3 experts.