As industries converge, many of DHL’s technology customers are seizing opportunities to transform their business by venturing into new sectors. Examples include Panasonic now offering medical devices, Intel now offering IoT-enabled oil field devices, and Samsung now offering  connected car systems.

These new directions introduce new opportunities and, at the same time, new challenges for the technology supply chain. Tech companies are starting to deal with many more parties located over much wider geographies than ever before. Companies may know very little about their new supply chain partners and this introduces high potential for mistrust and an ever-growing requirement for better security, privacy and fraud prevention.

Fortunately there is a new enabler for all of this – Blockchain. This rapidly maturing distributed ledger technology is ideal for exactly these circumstances.  In effect, it creates trust in the supply chain and helps to accelerate business momentum for technology companies.

Right now, Blockchain is enjoying a rapid rise to prominence in corporate agendas. Of course ‘the Blockchain stir’ began in the tech industry before rippling outwards into all sectors. This technology records transactions between parties in a secure and permanent way. By ‘sharing’ databases between multiple parties, Blockchain essentially removes the need for intermediaries who were previously required to act as trusted third parties to verify, record and coordinate transactions. And by facilitating the move from a centralized to a decentralized and distributed system, Blockchain effectively liberates data that was previously kept in safeguarded silos.

This new technology has vast potential to drive efficiency and enable new business models. Here are some specific examples of how Blockchain can help tech companies today:

  • As a substitute for trust in peer-to-peer trading with new companies in more distant and unfamiliar geographies
  • Prevent fraud, reducing fictitious pickups and other forms of cargo theft in all locations
  • Trace raw materials provenance to protect against reputational damage
  • Prove product authenticity and fight against counterfeit products
  • Guard against intellectual property theft and ensure you are fastest to market

Additionally, tech companies can use Blockchain to enhance back-office functions and operations, process accountability and consumer engagement, and enable smart contracts. If you’d like to know more, we have recently published the DHL Blockchain Trend Report. Perhaps your organization is already using Blockchain? I’d be very interested to hear your thoughts and experiences so please feel free to join the conversation by adding your comments below.

Published: March 2018

Image: Shutterstock