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UPS plans using block chain technology to improve service

On Behalf of | Feb 5, 2018 | Firm News, transportation & logistics

Technology is changing the way business is conducted throughout the world. In the transportation industry, driverless trucks are quickly becoming reality for logistics companies. As these trucks are rolled out in the years ahead, logistics firms will need to adjust to new regulations and deal with safety concerns.

As a logistics business owner, you are planning your business strategies far in advance. How you navigate the changes in your industry could make a huge difference to your business’ future success.

UPS joins block chain in Trucking Alliance (BiTA)
Recently UPS made an announcement that they were joining the BiTA in order to learn more about how block chain could serve their business. block chain is a technology which allows for a more secure transfer of digital assets (like import documents) and currency using a peer-to-peer network. UPS cites the potential for increased efficiency and transparency among the different stakeholders in logistics with the use of block chain.

Analysts suggest that block chain technology combined with artificial intelligence (AI) assisted real-time matching of loads and empties will transform the industry. Investment in these technologies will increase and eventually lead to a common practice amongst logistics companies.

Technology investment will differentiate logistics firms
Business owners who make the shift to invest in block chain and other technology will likely be more competitive in the marketplace. Participants in the initiatives that BiTA supports could see an increase in efficiency. The use of new technology could cut down on errors caused by improper paperwork, missed connections or bad deliveries, for example.

The consumer will begin to notice the difference when their orders arrive sooner or are less expensive. As it becomes more obvious to consumers that certain companies are performing better they may change their preferences. Within the industry, partners could require the use of block chain to be eligible to work with them.

Future impact to your business
Those companies that do not comply with the new standards could see a drop in business or maybe go out of business because they cannot compete. It will be important for you to be aware of the impact of block chain, AI and autonomous vehicles on your overall strategic decisions for the business.

In addition, you will want to know how these changes will affect your business contracts. You may be required to modify current partner agreements, for example. You will want to put some thought into what potential liabilities may be related to the technology. To navigate the complexities of these business initiatives, you might want to consult with an attorney who understands the intricacies of logistics.

Investing in technology is great and yet it brings with it a whole new set of requirements for a successful outcome.