FedEx: Current Blockchains Failed to Transform Logistics Industry
Matthew Lam May 21, 2019 16:00
Dale Chrystie, FedEx’s blockchain strategist believed that blockchain cannot transform the logistics industry with its current form. He highlighted that current blockchains are not the best database for logistics, nor they are mature and scalable enough to handle mass volume of logistics.
Dale Chrystie, FedEx’s blockchain strategist believed that blockchain cannot transform the logistics industry with its current form. He highlighted that current blockchains are not the best database for logistics, nor they are mature and scalable enough to handle mass volume of logistics.
However, Dale stressed that blockchain can make an impact on logistic industry if FedEx and its competitors agree and implement on blockchain standards. He further explained that blockchain needs to build its network and it is a team sport. “Once it is built, a lot of people will be able to figure out a business model for it. Right now, it’s not built.” He said.
The World Trade Organization’ report entitled “Can Blockchain revolutionize international trade” stated that there are four categories for international trade workflow, including commercial transaction, transport, border procedure and trade financing. The current workflow is “paper intensive processes increase coordination and administrative cost, they are also prone to errors, losses and fraud.”
Rob Carter, Chief Information Officer at FedEx agrees with Dale’s viewpoint. He wrote in his blog “Our greatest realization this past year is that in order for blockchain to be transformative, it will need to be much bigger than us.”
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