Dive Brief:
- A memorandum of understanding (MOU) between Pacific International Lines (PIL), PSA International (PSA), and IBM Singapore (IBM) has been signed in order to explore and conduct a trial proof of concept (POC) blockchain-based supply chain business network, Finextra reported Wednesday.
- The three companies will cooperatively explore blockchain technology to achieve better security, efficiency and transparency within supply chain business networks. Blockchain will also be deployed to explore finance solutions with faster approval rates plus fraud protection.
- Blockchain acts as a ledger employed by a business network to record data related to digital or physical assets. Members of the network gain access to a fully updated and encrypted ledger to add, acknowledge, and validate transactions. Once validated, data is recorded in all network ledgers.
Dive Insight:
The latest development in blockchain applicability may be one of its most practical thus far: supply chain and supplier compliance with security measures meant to foil cyberattacks. Because the process of ensuring that all vendors and suppliers are on track with proper, fully updated security platforms, employing the blockchain to transfer numerous complex contracts into simple, verified code can save a company millions in lost time, revenue, and reputation should an attack occur.
The Maersk debacle is a good example of what can happen when a lack of parity between IT and a company supply chain occurs. While IT seemed to work tirelessly on repairing the damage inflicted by Petya, it has still taken several weeks for the IT department to return Maersk's operations to normal.
As we're seeing, technology is earning its place within shipping with processes set in place for greater transparency and more streamlined protective measures. Employing blockchain to ensure everyone is on the same security level might be a good option.
