The Wall Street Blockchain Alliance (WSBA), a not for profit advocacy group that promotes blockchain technology for financial professionals, recently partnered with the Blockchain in Transport Alliance (BiTA), a trade association that focuses on the development of blockchain standards and education for the freight industry. The WSBA and BiTA partnership hopes to outline the impact of blockchain technology for the global transport industry.
WSBA and BiTA will develop materials and assess the global physical supply chain. They will also leverage deep industry knowledge and resources to develop risk management and supply chain conferences, certifications, and educational initiatives.
Both organizations are therefore planning an industry conference in June 2018 that will “cover topics such as blockchain technology use cases, smart contracts, and the benefits and challenges of blockchain technology in the financial and transport industries.”
“Each organization shares a vision of educating our relative marketplaces on blockchain technology, as well as guiding and promoting its forthcoming adoption,“ said Ron Quaranta, chairman of the WSBA. “We are very excited about the possibilities our joint efforts will yield.”
Blockchain technology: a solution to supply chain fraud?
According to the Consultancy network, the transport and logistics industry experienced considerable growth in the past few years. Globalization, increasing population growth, and consumer behaviour has seen an ever-increasing demand for products around the world.
However, a large problem plaguing the £2.7 billion pounds (approximately $4.7 billion CAD) industry is supply chain fraud. Due to the high number of supply chain fraud incidents, according to a Deloitte poll, corporations are attempting to fix the problem with the use of analytics. The number of companies with supply chain data analytics increased from 25.2 percent in 2014 to 35 percent in 2017.
WSBA and BiTA believe that blockchain technology can mitigate supply chain fraud. They have partnered to develop resources concerning risk management, supply chain conferences, and educational programs to assist the transport industry.
BiTA and WSBA partnership: a step forward for the industry
Companies in the transport industry are looking at the blockchain network as a technological solution to increase transparency in the supply chain. BiTA already has over 200 members including UPS, FedEx, and ShipChain. Warren Buffett’s BNSF Railway has also joined the alliance, just a few days ago.
“In the freight and transport space, blockchain technology offers the ability to create extraordinary efficiencies and help to foster mutually rewarding relationships for all industry participants,” said Craig Fuller, Managing Director of BiTA as told to FreightWaves.
“Partnering with WSBA affords us the opportunity to bring together our combined, highly influential and forward-thinking memberships to impact widespread adoption across both industries, in the United States and globally. The potential for this conference to affect change is truly unprecedented.”
“The WSBA is very pleased to be collaborating with the BiTA to guide the evolution of the global transport markets in a future with blockchain technology,” added Quaranta.
The WSBA and BiTA partnership is a great step forward for the transport and logistics industry. While the blockchain network cannot end supply chain fraud altogether, it is a significant improvement to paper tracking and an upgrade from the old transaction methods used today.