Apr 06 2022
Blockchain offers a solution to post-Brexit border digitisation to build supply chain trust
As a result of the UK leaving the European Union, logistics firms have faced additional friction at UK borders. Consequently, there have been calls for automated digital borders, but few such systems exist. Surrey researchers have now discovered that a blockchain-based platform can improve supply chain efficiency and trust development at our borders.
Blockchain is a system in which a record of transactions made in bitcoin – or another cryptocurrency – are maintained across several computers that are linked in a peer-to-peer network. The blockchain-based platform studied in this case is known as an RFIT platform; a pilot implementation blockchain system that links data together and ensures that this data is unalterable. This end-to-end visibility of unchangeable data helps to build trust between supply partners.
“Since the UK’s withdrawal from the EU Customs Union, businesses have faced increased paperwork, border delays and higher costs,” said Glenn Parry, Professor of Digital Transformation at the University of Surrey and co-author of the study. “A digitally managed border system that identifies trusted shipments appears an obvious solution, but we needed to define what trust actually means and how a digital system can help.
“Supply chain participants have long recognised the importance of trust in business relationships,” Professor Parry added. “Trust is the primary reason companies cite when supply chain relationships break down, which is especially true at customs borders. Current supply chain friction at UK borders is replicated across the world. Delay is caused by a lack of trust in goods flows, and hence a need to inspect.”
Surrey academics stressed that the introduction of this platform does not remove the need for trust and trust-building processes in established buyer-supplier relationships. It’s crucial that blockchain platform providers continue to build a position of trust with all participants. Read more
Source: LOGISTICS MANAGER