Reducing transportation and time costs, logistics giant FedEx is testing blockchain technology to track large, high-priced goods. According to reports, FedEx CEO Fred Smith pointed out the importance of the technology at the blockchain conference in New York, and stressed that this technology will cause huge changes in the logistics industry and is seen as cutting-edge technology to change the global supply chain.
The blockchain uses computer code to record each transaction and transmission data in a permanent digital ledger to ensure transparency of the information. Such books cannot be changed unless approved by all relevant units. This will reduce disputes often associated with traditional logistics industries such as time costs, payment costs and loss of goods.
Smith said that FedEx is investing in blockchain and IoT technology to improve customer service and resist one of its competitors' strategies. In the future, if logistics companies do not adopt blockchain technology, they will likely be eliminated by the market to some extent. Blockchain has an indispensable impact on the transportation industry, which can significantly reduce logistics costs, speed up transportation and reduce working capital.
FedEx has joined the Blockchain in Transport Alliance, which is setting industry standards in transportation. FedEx Information Director Robert Carter revealed during the conference that a small low-energy Bluetooth tracking sensor Tron is currently being tested. The number of patents acquired by this sensor development is much higher than any project developed in the history of FedEx.
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