How Is Blockchain Enabling Samsung To Cut Its Shipping Costs By 20% ?
Get to know the secret behind the business success of Samsung. Why are the tech giants opting for blockchain? Learn all about it.
Here Is Why Samsung Is Going For Blockchain?
The latest news is that Samsung Electronics Co. Ltd is considering using a blockchain ledger system to manage and keep track of its global shipments worth tens of billions of dollars a year. Thereafter it was found that according to the vice president of Samsung SDS Co, the major South Korea based group’s IT subsidiary told the Bloomberg that in the case the world’s biggest semiconductor and smartphone manufacturer is currently working on thereby developing a blockchain platform that could also help to slash the shipping costs by around 20 %. He further states that it will have an enormous impact on the supply chains of manufacturing industries as the blockchain is a core platform to fuel the digital transformation.
There come many companies that have previously talked about using blockchain ledgers to save costs and boost the efficiency of the businesses. It is however to date, few have followed up on these pledges. It is here that however the technology has been billed as one way to transform how these transactions are recorded, verified, and shared thereby prompting Gartner Inc to predict that the blockchain-related businesses will surely create $ 176 billion of value by 2025.
Reports On How Samsung Is Faring
Then when it comes to a Bloomberg report suggesting that Samsung is likely to handle the 488,000 tons of air cargo and 1million 20-foot-equivalent shipping units in 2018, and hence it is distributing products ranging from the smartphone devices including those like Galaxy S9 and the upcoming Note 9 to OLED displays used by Apple’s iPhone X. Those supporters of blockchain technology are found to argue that it can play an important role in the shipping industry by reducing the time it takes to coordinate with port authorities and send paperwork back and forth.
While according to CheongTae-su the professor of industrial engineering at Korea University in Seoul that speeding up the shipping process could potentially help Samsung to reduce the time lag between products launches and actual deliveries enabling the company to better respond to rival products and evolving consumer demands in important emerging markets such as China. He said that it cuts overhead and eliminates bottlenecks as it is about minimizing supply efficiency and visibility translating into greater consumer confidence.
Consequently, Samsung first started experimenting with blockchain technology over a year ago, and thereafter the company launched a pilot system for Korea’s shipping industry. Here the pilot is aimed to process all exports and imports in real-time.
The Situation Where Google, Goldman Sachs, And Citigroup Are Preparing For A Blockchain Future
It was found that according to a recent report published by research firm CB Insights, thereby the Mountain View, California based tech behemoth is the second-largest corporate investor in blockchain as the prominent companies are putting their money into blockchain technology including the likes of Goldman Sachs Group Inc, and Citigroup Inc.
Hereby Google’s investment in blockchain spans a varied spectrum having invested in Storj-io a decentralized cloud storage company as well as payments network Ripple that has rapidly gained traction in recent times. Therefore it is also a major investor in Veem which is a payments service provider that uses Bitcoin for money transfers as well as Buttercoin an open-source digital trading engine to arrange the trades thereby in an order book.
Thereby according to speculations according to Citigroup and Goldman Sachs, on the other hand, they are mostly focused on investing in outfits that help develop payment service engines, where for example, both companies are investors in Digital Asset Holdings a company providing services related to distributed ledger a blockchain technology to financial institutions as the world’s top blockchain investor however is SBI Holdings a Japanese financial services company that has thereby inked a partnership with Ripple last year.
Wrapping Up The Discussion Here
Therefore it is necessary to be sure that these companies are also exploring the uses of blockchain in internal projects. Here for example Alphabet Company DeepMind announced a project to track usage of healthcare records. Hereafter the CB Insights states that the corporate interest in blockchain is mostly focused on private blockchain development with investment from the top 10 US banks since 2014 hitting $ 267million this year.
Moving on the increased investment is no guarantee of success as according to the report, these blockchain companies are failing at a higher rate when compared to other tech startups. Here out of 103 blockchain companies with initial seed funding, only 28% made it to the next round and only one-a Japanese cryptocurrency exchange was able to sustain operations to Series D. therefore forty-six percent of all tech companies in other industries made it to the next round.