According to reports, Korean manufacturing giant Samsung Electronics Co. is turning to a blockchain ledger system to help keep track of global shipments worth billions of dollars annually.
This move could reduce shipping costs by 20%, blockchain chief and vice president at Samsung SDS Co. Song Kwang-woo reportedly told Bloomberg technology.
“It will have an enormous impact on the supply chains of manufacturing industries,” Song is quoted as saying in the article. “Blockchain is a core platform to fuel our digital transformation,” he continued.
Forecasted to be worth $424m (S$317m) by 2023, blockchain technology has been hailed as a breakthrough which will drastically reduce time needed to coordinate between entities within a supply chain network.
In the article, SDS is said to be handling up to 488,000 tons of air cargo and 1 million 20-foot-equivalent (TEU) shipping units this year. Blockchain technology could reduce response time needed between product launches and actual shipments, making it easier to respond to fluctuating consumer demands in markets.