Alliance members are developing standards and frameworks for blockchain technology that is projected to transform the trucking, transportation, and logistics industries
YRC Worldwide Inc. (NASDAQ:YRCW) has joined the Blockchain in Trucking Alliance (BiTA) to help lead, develop and promote benchmark standards for blockchain applications; the next generation of secure transactions in logistics and supply chain management.
BiTA will build the first set of transportation industry-specific blockchain standards by engaging the brightest minds from the most influential leaders in transportation, finance and technolog.
“Our decision to join BiTA was two-fold. As supply chain innovators, we want to be in on the ground floor of defining the standards set to become a key component of future global supply chain management. As a company with one of the largest, most comprehensive networks in North America, we see our BiTA membership as a strategic alliance that will increase transparency for our customers and improve their supply chain efficiencies,” explains Justin Hall, YRC Worldwide’s chief customer officer.
YRC Worldwide Inc., headquartered in Overland Park, Kan., is the holding company for a portfolio of less-than-truckload (LTL) companies including YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn. Collectively, YRC Worldwide companies have one of the largest, most comprehensive LTL networks in North America with local, regional, national and international capabilities.
BiTA believes blockchain is one of the most significant developments for the industry since the creation of the internet. A Deloitte tweet from May 2017 predicted that 10% of global GDP would be built on top of blockchain applications by 2025. BiTA intends to be the leading blockchain voice for the industry by providing more clarity and standards around blockchain through education and promoting the technology.
“We see efficiencies offered in secure blockchain technology as a natural evolution for the transportation & logistics industry. In this case, it’s evolution by unity. Using blockchain applications, our digital third-party logistics, shippers, YRCW carriers and partners can participate in smart contracts, all with variable physical requirements, financial service-level agreements, insurance structures, network switching, and real-time tracking for end-to-end visibility. We’re already heavily invested in implementing technology that streamlines communication and processes, both internally and for our customers,” says Hall.
Simply defined, blockchain securely digitizes transactions. Those within the industry and those who rely on it could benefit if the technology is widely adopted. Companies using blockchain applications could manage shipments more quickly, securely and with greater integrity. Consumers gain automation and precision throughout their supply chain, freeing them up to focus on exception management and incremental improvements.
“The real potential in blockchain technology is the built-in trust factor which could revolutionize the types and amount of information sharing between organizations. Our goal is to help define these secure certifications - imagine cryptographic distributed ledgers, data standards around weights and measures, and shipment provenance. And with agreements set, payments are tied to delivery timelines and specifications, improving payer and cash management, while speeding cash flow. I envision a new world order where even the most complex of transactions could be managed with ease and complete transparency,” says Hall.
“Blockchain standards and protocols are the technological equivalent of a treaty between nations, opening transparent lines of communication between shippers, brokers, carriers, vendors, other supply chain stakeholders, and consumers. Though widespread adoption will be years in the making, blockchain technology could create a scenario in which those turning their backs on the standards become as extinct as the Pony Express,” explains Hall.
Members of BiTA understand that blockchain is the way of the future, an industry changing technology that will revolutionize the way organizations do business. YRC Worldwide sees their alliance with BiTA as an opportunity to usher in this change in a uniform way that will benefit the entire industry.
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