Blockchain Is Set To Cut Samsung's Shipping Costs By 20%

Why Samsung? Why Blockchain?

Considering using a blockchain ledger system to manage and keep track of its global shipments worth tens of billions of dollars a year is the Samsung Electronics Co. Ltd. The South Korea based groups IT subsidiary Samsung SDS Co. whose vice president Song Kwang -woo thereby told Bloomberg that the world’s biggest manufacturer of semiconductor and smartphone is currently working on developing what is the blockchain platform helping to slash shipping costs by 20%. According to Song, it is set to have an enormous impact on the supply chain of manufacturing industries where it is a core platform to fuel the digital transformation. 

To save costs and boost the efficiency of their businesses may companies have previously talked about using blockchain ledgers as to date very few have followed up on these pledges where technology has been billed as a way to transform how transactions are recorded, verified, and shared prompting thereby Gartner Inc. predicting that blockchain-related businesses creating $ 176 billion of value by 2025.

Suggesting that Samsung is likely to handle 488,000 tons of air cargo as also 1 million 20-foot-equivalent shipping units in 2018, the Bloomberg report cites distributing products ranging from smartphone devices including the Galaxy S9 as also upcoming Note9 to OLED displays used by Apple’s iPhone X with supporters of the technology arguing that it can, therefore, play an important role in the shipping industry reducing the time it took to coordinate with port authorities and send paperwork back and forth.

According to a professor of industrial engineering at Korea University in Seoul, Cheong Tae-su reported by Bloomberg that the speeding up of the shipping process is set to potentially help Samsung thereby reducing the time lag which is between product launches and the actual deliveries thereby enabling the company to be better in responding to the rival products as also evolving consumer demands in important emerging markets such as China. According to him, it cuts overhead and eliminates bottlenecks as it is about maximizing supply efficiency and visibility translating into greater consumer confidence.

Finally, it started experimenting with what is the blockchain technology over a year ago, as Samsung launched a pilot system for Korea’s shipping industry as the pilot was aimed to process all exports and imports in real-time

Google Is Building Its Blockchain

Google is hereby working to introduce blockchain-related technology aimed at supporting cloud business according to a news report on Bloomberg. Enabling numerous start-ups to offer what are novel online services, assuring customers that their information is more secure as well as more efficiently managed compared to the traditional methods of online data hosting as the blockchain-based services offerings proving to be a tough competitor for very many technology companies including the ones operating in the hosted solutions space like the cloud-based data storage. 

The Reason Behind Google Working On Blockchain

It is discovered that blockchain similar digital ledgers allow the secure recording of transactions as well as the processing of data points over the Internet or the other private networks. Therefore, businesses are increasingly moving to digital ledgers and blockchains because they are more secure and efficient in storing and retrieving key business data and content. Businesses are additionally wary of the risk involved in having only a single company to host their key business data whereas the decentralized nature of blockchain comes to be preferred by such businesses for better security as well as risk management of the content. 

Posing a threat to the traditional internet-based businesses there are a growing number of online services available on the blockchain platform with technology giants like Google taking an inclusive approach to fend off such competition in case you can’t beat them, join them. To complement its cloud business Google is said to be venturing into the blockchain space as it faces stiff competition not only from other cloud providers like Microsoft Corp and Amazon.com Inc but also many other new-age blockchain service providers. According to the Bloomberg report, it is developing its distributed digital ledger where third parties can use it to post and verify transactions. 

Finally, A Few More Words

While offering a white label version of its distributed digital ledger the company is expected as the practice allows of a developer or manufacturer allowing other companies to rebrand a product or service as their own. As it is true that Google comes with such white-label offerings thereby known to host all of the client’s data on its servers and data centers open to offering private blockchains where it may be completely owned, controlled or operated by clients either over various servers spread throughout the internet or hosted securely on a private network.