The consortium of companies, which also includes Accenture and a European regulatory agency, used a blockchain solution on 12 shipments to test its robustness.
A consortium of Anheuser-Busch InBev, Accenture, the shipping line APL, the global 3PL Kuehne + Nagel and an unnamed European customs organization said Thursday they have tested a way to eliminate the physical printing of international shipping documents through blockchain.
The test involved applying a blockchain solution to 12 real AB InBev shipments with various destinations and different regulatory requirements.
“The tests confirmed that blockchain can reduce operating costs and increase supply chain visibility and save the freight and logistics industry hundreds of millions of dollars annually,” the consortium said, adding that they believe up to 80 percent of data entry requirements could be eliminated by such a solution.
“An international shipment of goods for companies in areas such as the automotive, retail or consumer goods industries typically requires more than 20 different documents, many of which are often paper-based, to enable the goods to move from exporter to importer,” the companies said. “The document heavy approach limits data quality and real-time visibility to all parties involved in the trade and this can also delay the financial settlement on goods.”
The solution essentially creates a scenario “where documents are no longer exchanged physically or digitally but instead, the relevant data is shared and distributed using blockchain technology under single ownership principles determined by the type of information.”
Blockchain technology is being put forward by a number of parties involved in international freight movement to create an ironclad record of data related to individual shipments.
In recent months, Maersk announced a joint venture with IBM to offer an international trade blockchain product. Hyundai Merchant Marine piloted the technology in mid-2017, while UPS is said to be investing heavily in blockchain solutions.
The primary early applications have centered around creating an immutable electronic ledger of data, improving product traceability, and providing alternative trade finance mechanisms.
“Our trials have proven the viability of a shipping process in which many documents can be replaced by secure and distributed data sharing with clear and defined ownership,” said Adriana Diener-Veinott, who leads Accenture’s Freight & Logistics industry practice. “This gives companies a significant opportunity to save time and money while improving their service to customers.”
Accenture provided the consortium with technological and consulting expertise on blockchain technology and developed the technical architecture required to support a blockchain solution.
“APL sees much potential in blockchain technology to accelerate the digital transformation of the container shipping industry, moving us from traditional paper-based transactions to more efficient, more secure and faster processes along the entire supply chain,” said Eddie Ng, head of strategic liner management at APL, a subsidiary of the CMA CGM Group.
Danillo Figueiredo, vice president of international logistics at AB InBev, said his company is attracted to blockchain technology because of its potential to reduce mistakes, digitize information and improve supply chain processes.
AB InBev, APL, and K+N partner on blockchain trial
