It is undeniable that both the profitability and sustainability of commercial enterprises rely heavily on its ability to adapt to prevailing conditions. In the 21st century, success or failure of companies is determined by their adoption rate of emerging and cutting-edge technologies. Among the most advanced and influential technologies of the century is Blockchain. The far-reaching impact of Blockchain technology is attributed to its universal application across most sectors, including the trucking industry.
What is Blockchain?
Understanding the fine blueprint and intricacies of blockchain is undoubtedly beyond the scope of this post. But, in layman’s terms, blockchain is technology based on cryptography, which is a complex branch of mathematics. Its application is anchored on a shared digital ledger that has been decentralized by consensus of an interlinked global peer network. The name ‘blockchain’ is based on the fact that it consists of a series of encrypted individual digital ledgers known as blocks that are chained together in a global peer network. The permanent linkages of series of digital ledgers make it impossible to modify data in a single block without modifying the chain as a whole. This prerequisite bestows invaluable security because the entire chain can only be modified after attaining consensus on the global peer network.
Importance of Blockchain to Trucking
Even though the term blockchain is merely a buzzword to most trucking companies, its cross-cutting applicability and universality are already revolutionizing the industry. Importance of the technology stems from its ability to resolve some of the major inefficiencies that have plagued the trucking industry for years, namely;
- Poor freight and fleet tracking
- Decreased efficiency
- Poor truck and fleet performance tracking
- Difficulties in carrier onboarding
- Lack of vehicle to vehicle communication
Trucking Issues that Plagued Tranomics
Just like other companies in the trucking industry, Tranomics had been financially burdened by ever-increasing overall trucking costs imposed by over-reliance on paper transactions. The dire situation was worsened by a large sum of the company’s financial resources company being tied up in payment disputes. Tranomics also experienced challenges in acquiring suitable and mutually beneficial contracts due to match-up issues. Lastly, issues affecting truckers across the industry, such as loss of cargo, fleet maintenance, and so on, undermined the profitability and operations of Tranomics.
How Tranomics Used Blockchain to Resolve these Issues
Using blockchain’s coordination platforms has enabled easy distribution and sharing of ledgers within Tranomics. These platforms have reduced Tranomics’ overall trucking costs by rendering physical paper-based transactions unnecessary. Tranomics has also adopted blockchain’s smart approvals, contracts, and customs clearance, which reduced time wasted at customs checkpoints. Scalability and real-time authentication and order tracking provided by blockchain technology have enabled Tranomics to meet the rising demand for one-hour and one-day trucking services. Blockchain has made it easier for Tranomics to track and acquire cheap but authentic truck parts needed for fleet maintenance and repairs. Lastly, the decision-making process within Tranomics has been improved by real-time and authentic data provided by blockchain’s global network, which collects and integrates data from across the industry.