Blockchain Technology can revolutionize the worldwide supply chains says FedX CEO

FedEx Corp. is testing the technology to track large, higher-value cargo as they are convinced that blockchain is on the brink of transforming the package-delivery business.

FedEx is committed to making a difference to its clients and clients’ businesses. Their trained shipping experts can help their clients save time and money with local knowledge on a global scale. They do not only deliver packages but deliver business solutions.

Chief Executive Officer, Fred Smith, said at a blockchain conference in New York on Monday:

“We’re quite confident that it has big, big implications in the supply chain, transportation, and logistics. I believe it’s the upcoming frontier that’s going to completely change worldwide supply chains.”

Blockchain uses computer code to record every step of a transaction and delivery in a permanent digital ledger, providing transparency. Making changes in the ledger is not possible unless all are involved agree, reducing common disputes over issues like time stamps, payments, and damages.

FedEx’s interest in blockchain and the Internet of Things are part of the company’s strategy to improve customer service and fend off competition, Smith said.

FedEx started the project with an organization called the Blockchain in Transport Alliance that is attempting to set industry standards for using the technology in transportation. Blockchain has the potential to lower transaction costs, speed up processes and free up working capital, according to the alliance.

Chief Information Officer Robert Carter said at the conference:

“We are also experimenting with Tron, a small Bluetooth-based, low-energy tracking sensor in addition to blockchain.”

The company has taken out more patents on Tron than any other technology in the company’s history.

The CEO concluded:

“Unless a company embraces new technologies such as blockchain, it will probably face extinction, at some point in time.”

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