top of page

Can Blockchain Effect Today's Logistics ?

Blockchain Effect

Can Blockchain Transform the Supply Chain and the Logistics Industry? We think it can, if its done the right way and if it is built for the trucking companies four million owner operators.

It is quite complicated to manage the current supply chains. Taking into account the links required for the creation and distribution of goods. The supply chain may have more than a hundred of stages depending on the product. It may involve several international venues with the processing of expenses and bills, and several people which can extend for several months. Today’s supply chain does not have transparency as it is full of complexities. Hence, there is an apparent interest seen as to how blockchains can help in transforming the supply chain and the industry of logistics.

Let us take a look at the gaps or what is broken, the distinctive attributes of blockchain and some of its examples that are already making an impact in the current’s logistics supply chains.

Is the supply chain broken?

It is evident that the supply chain has gaps for several reasons. In the past, this process was plain and simple because of the practice of local commerce. As the world evolves, they turned out to be complicated. There were innovations and developments throughout the supply chains history. One of these is the use of trucks to haul freights as opposed to using rails. There is also the birth of personal computers during the 80s that resulted in the major transformation of managing the supply chain. While most of the manufacturing tasks were done in China as it was globalized, our supply chains became heavy with complications that surround it.

For buyers, it can be hard to realize the actual work of products as the current’s system does not have transparency. Similarly, it can be a challenge to know if there are suspicious practices that exist within the supply chains. In fact, it can work inefficiently just like how the sellers and their suppliers try to figure out the needs and want of their buyers.

Also many new blockchain start ups are charging astronomical membership fees similar to that of BITA. The average fee to join there so called logistics blockchain is $2500.00. They also claim years before a solution is provided but already boast to have over 600 members. The group of members they already have are considered to be the major players already within logistics and after careful look into their business model, there seems to be no room for the benefit of the smaller owner operator.Larger freight broker companies and various other logistics providers have joined the large BITA paying thousands of dollars to create what we fear is another loop hole for the big to get bigger and to have a more streamline of controlling logistics.

The cryptocurrency solutions with Bitcoin maximizes the use of blockchain. This type of blockchain solution within the financial industry is considered a virtual ledger with a few application empowering it which can be used in different ways. Each transaction made is documented on a block with multiple ledger copies which are then distributed on computers thus considered as a transparent method. The process is also secured as every block is linked to the one before and after it. Over the blockchain, users can ensure that there is no central authority involving it. This makes it expandable and highly efficient to use. With that in mind, blockchain is able to make supply chains transparent and efficient. It can safely be used from warehouse, shipment, and payment. A blockchain has a built-in command chain which makes it essential for a lot of processes.

Blockchain offers solutions required not just for integrity but even for reliability in so many ways. A consensus is also provided by blockchain because all transactions are clear considering that all entities on the chain are also contained like that of the ledger. Those who are using the blockchain is able to see its asset ownership. Furthermore, all the records filed on blockchain cannot be deleted. This makes it more transparent or understandable in the supply chain.

Some examples of blockchain

With blockchains, you can do funds transfer without using the application of an actual bank or without stepping to a branch to open a bank account. This makes it easy and convenient for most entrepreneurs like Tomcar, an Australian manufacturer of vehicles who is able to send payment to his suppliers with the use of Bitcoin.

Let us not forget how it helps the food industry which requires product tracing to its source. The huge company, Walmart uses blockchain in order to trace that the pork its sells came from China. The records show from blockchain details like where each meat originates, processed and all other information. This is also the same reason why Nestle, Unilever, Dole, and Tyson made use of blockchain. Keeping exact data on their food supply is critical to guaranteeing fresh and safe products.

The world’s largest firm in the mining industry BHP Billiton announced that for faster tracking and accurate data recording, it will also start using blockchain for its mining process with the vendors. This will not just improve internal efficiency but can also enable them to have clearer communication with their partners. Allowing the mining process to be streamlined from beginning to transporting the finished products within the key industry's.

It is important for customers to be aware that they support companies who share the same thoughts when it comes to transparency of blockchain. This is in line with giving importance to sustainable manufacturing and environmental management. Blockchin is created and utilized with transparency being the key factor for its utilization. Logistics is crippled today with lack of transparency from the ever no ending 3rd parties who continue to create gaps within transparency and bringing doubt to owner operators.

De Beers, also a mining company who uses the blockchain for stone tracing. They are into tracing the point they are mined up to the instance when it was sold to buyers. This can make sure that there will be no blood diamonds while assuring buyers that they are getting the real ones and paying for their money’s worth.

You can also find blockchain built into a few supply chain startups. An example of which is an association committed to taking out the middle man and leveraging the trucking company carrier direct to the shipper on one platform is the PLSPA also known as ( Professional Logistics Service Provider Association). Michael Thomas, president of PLSPA association says that a blockchain solution is worthless unless it is built strictly for the carriers in America who are the ones that actually move the freight.The non profit logistics association is changing heads within the freight community and are committed to taking providing direct blockchain solutions for the shipper and carrier only and removing 3rd parties who bring in doubt and additional fees that loweres the freight profit margins for truckers. Mr Thomas Says they saw the real need that blockchain offers owner operators and how it gives a direct solution for improving profitable freight solutions. Also they promote efficiency in stream line services within its key members while ensuring to minimize the costs to owner operators when it comes to the freight capacity gap within supply chain. While more companies come to realize its essence, they will also be among the elite group of carriers who will make use of solutions enabled by blockchain as it helps to make the industry of logistics and supply chain better than ever.

To learn more about freight broker and trucking company solutions for todays market, you can visit LFS, a logistical development and consulting company at

Logistical Forwarding Solutions

About Author Michael Thomas

Michael Thomas has spent the last 15 years working as a freight broker and trucking company owner. He works daily within his own company's and enjoys sharing his knowledge with individuals all over the world. His goal is to help others enjoy the freedom of logistics and learn how to become a freight broker or how to start a trucking company business. Contact Michael Thomas today at or send an Email at


bottom of page