Samsung Electronics has revealed that it is considering using blockchain technology to track and manage its global shipment network. The disclosure was made by Song Kwang-Woo, the vice president of Samsung SDS Co., the logistical and IT subsidiary of Samsung Group.
According to SDS, implementation of the blockchain solution is poised to cut global shipping costs by up to 20%.
“It will have an enormous impact on the supply chains of manufacturing industries” said Song.
The South Korean company will be working with SDS to help with the creation and implementation of Samsung blockchain ledger system. SDS already added Nexledger, a transaction management platform based on a permissioned blockchain framework, to its list of Samsung blockchain applications last year.
Around the globe, there is a remarkable increase in activity from companies to explore ways to integrate blockchain technology into their operations. Samsung Electronics is one of the first tech companies to seriously consider leveraging blockchain to streamline its supply chain.
Blockchain can be used in various applications to help the shipping industry more efficient. The technology can reduce the amount of time needed for paper documentation, ensure better delivery system and help shipping companies stay in compliant with regulators.
With the system capable of handling up to 488,000 tons of air cargo and 1 million 20-foot-equivalent shipping units, SDS expects to transfer Samsung’s entire supply network to blockchain. This includes organic light-emitting diode displays and Samsung Electronics’ Galaxy S9 smartphone.
Having recognized the potential of blockchain technology, Samsung Electronics has sought to embrace the technology on a new level. Early this year, the world’s biggest maker of smartphones and semiconductors announced partnerships with manufacturers Halong Mining Group to produce ASIC mining hardware.
This follows an agreement it made with the South Korean government to create a blockchain-based platform that focuses on “welfare, public safety, and transportation” by 2022.