The haulage industry is like any other in that it needs to utilise new and emerging technologies to work more efficiently. IoT and smart technologies are allowing haulage and freight forwarders to get the absolute most of their resources and it would seem that other advancements are already making a huge difference to companies across the UK.
One such technology that we look at today in some detail is Blockchain, which is essentially improving the efficiency and ultimately the profitability of logistics operators. However, for the uninitiated, let’s start by looking at what Blockchain is and how it works. You won’t be an expert by reading to the end, but you will better understand what this popular ‘buzzword’ really means.
Blockchain Explained
Based on a complex area of mathematics known as cryptography, Blockchain technology is not something that we’ll try to explain in too much depth, as it would take too long. What we will do though is give you an overview. In short, Blockchain is a shared, decentralised digital ledger that operates under the auspices of a global peer network, with each encrypted ‘block’ linked together in a ‘chain’.
Perhaps its biggest feature is that none of the data in any of the blocks can be modified without first gaining the consensus of the whole peer network. This makes it almost impossible to falsify data or conduct any kind of malicious action and once data is in Blockchain, it’s essentially there forever.
The Haulage Issues That Blockchain Addresses
Each and every day there is a colossal amount of money tied up in payment disputes in the haulage and transportation sector. In fact, a little under £100bn is held up in this way and companies have to wait an average of 42 days to get paid. The result of this is that up to 20% of all transportation costs are made up administration and processing costs.
Matching loads is another major issue that haulage companies face, with many companies struggling to pair up supply with demand. There are a reported 29 billion miles per year covered by truck drivers with partial or empty loads as a result and these efficiencies are far from uncommon.
Improved Efficiency & Paperless Working
Blockchain offers the solution to this problem and more. From improving administrative efficiency to the resolution of disputes, it helps to greatly reduce wasted miles and unnecessary supply chain delays. Sensitive refrigerated cargoes are helped greatly in this regard too, as many loads of this type spoil because of hold ups due to inefficient communication.
Where Blockchain comes in handy is that these steps are able to be recorded immutably and securely in real-time. What’s more, Blockchain platforms make it easier to coordinate documents thanks to its shared ledger, which also eliminates the need for physical paperwork.
When Blockchain is used for customs clearance, approvals and smart contracts, the whole process becomes quicker, meaning freight gets moving that much more quickly. What’s more, it also offers an immediate, scalable solution for the tracking of orders and authentication.
Additional Benefits Include:
- A reduction in merchant fees
- A lack of need for 3rd party authentication
- Transactions are really fast and super-secure
Companies across the logistics industry and beyond are realising just how much Blockchain offers in terms of operational streamlining. It would seem that companies not adopting it in the future are putting themselves at something of a competitive disadvantage.
A Challenging But Exciting Time Ahead
As you can see, the transportation sector stands to gain as much as any other industry through the adoption of new technologies like Blockchain. With ever increasing customer demand for goods to be shipped quickly, the need for hauliers to be efficient with resources whilst also reducing operational costs has never been greater.
At HGVC, we are a national HGV training provider that can meet all the training needs of companies across the United Kingdom. Whether you’re in need of an urgent HGV driver training course for a single driver or a thousands to be trained over a 5 year period, we can assist.
If you would like to know more about us or what we offer, get in touch at www.hgvc.co.uk/contact-us/. Alternatively, if you would like to discuss your HGV training requirements with us directly, simply call us on 0330 818 8888 and our friendly team will be more than happy to assist.
