19 Oct Developing Cargo Management Systems with Blockchain
Effective management of cross-border trade is critical in a fast-moving world today. The rise of e-commerce has posed a bigger opportunity for the industry to evolve and thrive sustainably. However, the conventional challenges, such as lack of transparency leading to cargo theft and data theft, hinder the growth of an industry with a larger potential to grow.
Ultimately, lack of transparency reflects primarily in the bottom line of Ground Handlers as revenue leakages. Manual and manipulated data entries cause revenue leakage to a large extent. In order to overcome this challenge, Handlers began to implement Cargo Management Systems akin to enterprise solutions that will digitize their operations. Yet, the practice of manual entry on a digital system made the entire process ineffective.
Hence, the call for a robust process driven by a secured system is arousing in the logistics world, and Blockchain can address this call and bring transparency.
Blockchain and Logistics
As per industry estimates, the logistics industry has been projected to be worth $15.5 trillion by 2023, with growth prospects to sustain after that. A typical supply chain in this industry has various stages, spans several geographies and generates mountains of payments and invoices. Moreover, the end-to-end process involves multiple entities with varying levels of trustworthiness and dependability. This business, hinging on trust, is all set to be disrupted and transformed to the next level with the advent of Blockchain technology.
Blockchain technology in Cargo Management Systems forms a distributed ledger that records transactions between entities securely and permanently. By ‘sharing’ databases between multiple entities, Blockchain effectively eliminates the middleman, such as a trusted third-party intermediary, who would have been required to verify, record, and coordinate transactions in the past.
This moves from a centralized to a decentralized and distributed system, as facilitated by Blockchain, without a doubt liberates data from the safeguarded silos of the legacy systems.
Tackling Data theft with Blockchain
Transparency and data theft are critical issues for Air Cargo stakeholders. Right, from sharing crucial advanced information safely to securing the information from phishing attacks and data thefts, the need to safeguard data is pretty high. That’s the time when Blockchain comes into play. The robust algorithm and encryption mechanism cut the scope of phishing attacks to zero.
Several frameworks for the air/maritime stakeholders are already in place and assist in cutting down critical issues, such as revenue leakage and data theft. Cargo Management Systems powered by Blockchain have seen an upward adoption in use cases like Bill of Landing, Crypto, Certificate of Origin, and Digital Trade Corridors.
Blockchain applications and benefits
Large, medium, and small players can streamline the process using Blockchain-powered Cargo Management Systems. It can also be used in identity management, security, check-ins and customs. Passports, travel records, customs paperwork, employment passes, and more can be digitized and stored on the Blockchain to minimize wait times and automate aspects of departures and arrivals.
Blockchain-powered Cargo Management Systems can increase the efficiency and transparency of supply chains and positively impact everything from warehousing to delivery to payment. Such systems and networks offer precise record-keeping and verification of transactions. Blockchain can bring in the necessary process efficiency and enable data transparency and access among relevant supply chain stakeholders, creating a single source of truth.
Facilitating optimal efficiency with Blockchain
Blockchain has the potential to facilitate optimal efficiency and novel business models, including swifter and leaner global trade logistics, higher transparency and traceability in the supply chain, and augmented automation of commercial procedures in logistics. However, gaining industry adoption is the most crucial challenge in determining Blockchain technology’s success in logistics.
A typical Blockchain powered Cargo Management System
Managing the movement of cargo at airports is a tedious task. Cargo handling is a complex job with diverse functions that are important to conduct seamless cargo movement. Airports worldwide dealing with international cargo movement must deploy Airport Cargo management systems designed to manage the complexities and intricacies involved in cargo operations.
With a cargo management system that is cloud-based and integrated, users can experience exemplary Cargo Handling capabilities. It automates operational processes and provides quick and comprehensive information on consignment status, cargo tracking, and terminal operations.
An International Air Cargo management system enables EDI with Customs, Airlines and other stakeholders. In addition to import and export handling processes, this Air Freight software solution also provides for Transhipment, ULD management, Service level management as per AHM801, tracking, terminal and airline invoicing, mail and courier handling.
It is a robust, cloud-based comprehensive ground handling system designed to drive complete operational efficiency and end-to-end real-time visibility to Cargo Handling airports and independent Ground Handlers. This Air Freight software solution eliminates redundant processes by offering a single point of data entry and thorough automation of operational processes. An International Air Cargo Management System offers customers and management complete information about consignment status.
Key benefits of a typical Cargo Management System
Here are some key benefits a typical international cargo management system can offer and how handlers worldwide realize the benefits.
Compliance
As the industry is now penetrating deep, the regulations as well. To date, the regulations to send cargo from one country to another are so high that not adhering to them will lead to enormous delays. Ground Handlers have a process to follow to adhere to the guidelines. Failing to do so will hamper their operations. In turn, to incorporate and adhere to regulatory compliance. A cargo management system is equipped with frameworks to adhere to these norms.
Use of advanced technologies
Now, times are changing, and stakeholders are gradually accepting the transformation. Advanced technologies like bar code gate passes, secured payment gateways, and RFID scanners make data transfer error-free and seamless. Also, Robotics and Artificial Intelligence powered warehouse operations like load planning based on data from weight, dimensions, flight date and destination. ULD optimization and bots to move cargo are already happening in full swing. Therefore, technology adoption is gradually evolving.
Seamless automation and inspection
These systems use technology, such as X-ray machines and sensors, to inspect cargo for security and quality control purposes, reducing the need for manual inspections and improving the speed and accuracy of the inspection process. Therefore, physical inspection of each cargo stack isn’t required.
Mobility applications
Paperless trade was on the rise during the pandemic, and mobility applications were leveraged to a large extent. Here, wearable devices such as smartwatches were at play. For example, smartwatches and mobile phones can send timely updates to security guards at the exit gates. By doing so, documents such as Vehicle Tokens and Gate Passes can be digitally exchanged with all stakeholders in a unified portal. Going forward, experts believe that wearables such as smartwatches will be the most preferred mode of verification at in and out gates.
Performance tracking
Tracking business performance occasionally and understanding the evolving business scenario is important. Experts believe that the hefty losses could have been reduced if the pandemic had been predicted a few months before. Also, by improving the regular mundane processes and reporting systems, business processes can be seamless and effective. A cargo management system will make tracking business performance with reports and SLAs by leveraging business intelligence tools much more seamless.
Safety & security
While digitization is seen as a boon, several stakeholders in a cargo complex are reluctant to go digital because of the rising cyber-attacks. According to a news report, the cyber-attacks in the U.K. in October 2022 rose by 40 per cent compared to 2020. Therefore, providers of Cargo Management Systems are keenly looking to build a firewall and make it safer for all users simultaneously. Also, Pharma and perishables are mapped with temperature sensors to monitor product efficacy. Any excursions can be alerted to the concerned data loggers. This way, the pharmaceutical companies can rely upon Air Cargo and transfer critical medicines on time.
Integration
Integration and automation are becoming the key aspects of supply chain operations. Well-integrated systems, like automatic weighbridge, transmit data directly to the handlers’ system without manual intervention. With 360-degree integration, the service standards can be defined with a mandatory framework so that the service providers adhere to the standards by default.
Seamless automation and inspection
These systems use technology such as X-ray machines and sensors to inspect cargo for security and quality control purposes, reducing the need for manual inspections and improving the speed and accuracy of the inspection process. Therefore, physical inspection of each Cargo stack isn’t required.
Quick ROI realization
Realizing ROI growth has been a dream for ground handlers gradually recovering from the pandemic shock. With a cargo community system, handlers can streamline their operations and ensure rapid business growth with an optimal utility of resources.
In conclusion
The journey forward for the logistics industry will likely be an amalgamation of Trade Facilitation and Digitalization, with paperless logistics setting the stage for the subsequent growth trajectory. Technology has always been and will continue to be an enabler in this process.