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Resolving the Blockchain Paradox in Transportation and Logistics

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Resolving the Blockchain Paradox in Transportation and Logistics

Boston Consulting Group,

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The blockchain is coming to transport and logistics. Be sure your firm is ready.

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Editorial Rating

8

Qualities

  • Analytical
  • Applicable
  • For Beginners

Recommendation

Imagine a transport and logistics (T&L) industry uncluttered by checks and balances but just as reliable. That’s the vision of a team of Boston Consulting Group analysts, who make a strong case for why the T&L industry must resolve the trust paradox preventing it from adopting blockchain solutions. The technology could help your company cut costs and improve profit margins while operating better and faster.

Summary

A blockchain paradox afflicts the transportation and logistics (T&L) industry: Blockchain’s distributed, transparent ledgers could ease the distrust hampering industry collaborators, but that very distrust prevents them from embracing a blockchain solution. A 2018 survey of T&L business leaders showed that while most believed blockchain would reshape their industry in two to five years, 74% of them have considered blockchain solutions only “superficially” – or not at all. The executives cited poor industry coordination, a lack of in-house know-how and insufficient understanding of blockchain as barriers to adoption. In truth, blockchain...

About the Authors

Andrew Schmahl, Sanjaya Mohottala, Kaj Burchardi, Camille Egloff, Jacqueline Govers, Ted Chan and Markos Giakoumelos are professionals with the Boston Consulting Group.

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