Samsung eyes blockchain technology to cut supply chain costs by 20%

By Ben Mouncer
Samsung is targeting the introduction of blockchain technology that could reduce its global shipping costs by up to 20%. Song Kwang-woo, vice president...

Samsung is targeting the introduction of blockchain technology that could reduce its global shipping costs by up to 20%.

Song Kwang-woo, vice president of Samsung SDS, the Korean multinational’s specialist technology arm, has revealed the company is investigating the possibility of using a blockchain ledger system to ‘fuel its digital transformation’.

By automating channels of communication both internally and with port authorities, it predicts that it will be able to improve efficiency by up to a fifth – potentially saving billions of dollars every year.

See also: 

“It (blockchain) will have an enormous impact on the supply chains of manufacturing industries,” said Song, speaking to Bloomberg. “Blockchain is a core platform to fuel our digital transformation.”

Samsung works with approximately 2500 suppliers around the world, building relationships around five key criteria: cost competitiveness, human resources capacity, on-time delivery, response to risk and supplier competitiveness. SDS says it will handle around 488,000 tonnes of air cargo and 1mn TEUs in 2018 alone.

Last May, SDS launched a blockchain pilot to track imports and exports of shipments in Korea’s shipping sector, a trial that concluded at the end of the year.

According to a recent report by IndustryARC, the global blockchain in supply chain market is forecast to maintain a compound annual growth rate (CAGR) of over 48% between now and 2023, reaching a total valuation of $424mn by the end of the period.

Share

Featured Articles

Diageo CPO Orozco to lead procurement at Kraft-Heinz NA

Diageo CPO Janelle Orozco takes up Chief Procurement Officer role for Heinz-Kraft North America, as food giant drives customer-focused transformation

DHL Express in Heathrow gorilla logistics triumph

DHL Express specialist logistics staff help ship Kiburi the silverback gorilla to Heathrow as part of London Zoo endangered species breeding programme

Global customs staffing issues hitting supply chains - EY

Dan Dreyfus of EY says labour shortages are impacting customs and border agencies, who are integral to the the smooth running of supply chains

Latest China Covid outbreak poses supply chain threat

Supply Chain Risk Management

Automotive suppliers ecosystem set for change - Accenture

Technology

Logistics news round-up from Europe, US & Asia

Logistics