More than 80% of transport and logistics (T&L) executives do not have a clear understanding of blockchain and its implications for the industry according to a new report from Boston Consulting Group (BCG).
The study found several contradictions in the way blockchain technology is handled – even though 88% of T&L executives said that they believed blockchain would disrupt the industry, only 16% of respondents felt that they had clear understanding of the technology and its implications.
Despite 59% of those surveyed believing that blockchain will disrupt the industry in the next 2-5 years, 74% are only superficially exploring opportunities, or have not thought about blockchain at all.
As many as 60% said that a lack of coordination among industry players and the absence of an ecosystem are major barriers to blockchain adoption, and so industry participants must collaborate to develop an ecosystem that forges trust and creates mutual benefit across the value chain.
Andrew Schmahl, a BCG partner and coauthor of the report, said: “The best blockchain networks will be the hardest to create. By increasing transparency, blockchain can mitigate the mistrust that often exists within the T&L industry’s multiparty transactions.
“Yet this same mistrust makes it hard to bring together the industry’s diverse participants into a common blockchain ecosystem.”
According to BCG, the benefits T&L companies will gain in resolving the blockchain paradox include improvements to speed, traceability, cargo safety, and invoicing and payment processes.
This can drive substantial cost reductions, helping to relieve the intense margin pressure experienced by many industry players.
Companies may also be able to use the technology to develop entirely new business models, the study noted.
Camille Egloff, a BCG senior partner and report coauthor, stated: “To promote industry-wide adoption, each player needs to see how blockchain can create value by relieving the points of friction in its own operations.
“Then, by working with suppliers, customers, and even competitors, a company can understand and implement solutions that address its specific business needs.”