What is blockchain in logistics?

Blockchain in logistics represents a transformative innovation in supply chain management. This technology offers a secure and transparent way to improve processes. Learn how blockchain is changing the logistics scenario and its practical applications, benefits, as well as the challenges associated with its implementation.

blockchain in logistics


The use of blockchain in logistics allows to recording and supervising the management of resources, requests, exchanges, and details in a chronological and shared way among several members who previously agreed on the rules to be followed to guarantee the effectiveness of their collaboration. Generally, blockchain applications in logistics are focused on:

  • Improve payments and contracts 
  • Transparency within the supply chain
  • Focus on increasing customer loyalty
  • Improve traceability of product shipments
  • Make it easier for partners to connect across platforms


The implementation of blockchain in logistics is important for companies’ security, since each new information that is added has the same security and all collaborators are aware of the adjustment of each information. In addition, this technology allows companies to perform and validate transactions in a more secure and direct way, without intermediaries.  

The operation of the blockchain is based on a technology where all network participants have access to the same information in the individual blocks. When a transaction is made and recorded on a node or computer, this action is shown to all other computers in the network. They all share and can confirm or reject what they see. The information is transmitted to all the other blocks in the chain. This technology is very resistant to tampering attempts. 


Benefits of Blockchain in Logistics: Transforming the Supply Chain


Blockchain technology is optimizing supply chains, for example, data from SAP Digital Readiness Assessment indicates that 44% of companies are considering implementing blockchain technology to document transactions securely. Here are some of its benefits in logistics:



Because blockchain data is unalterable, it allows proper traceability in supply chains from the source. By economically and efficiently recording any changes, this improves the efficiency of information flow in different aspects such as manufacturing, storage, stock and processes. This allows to create a time log of all flows so that everyone involved in this chain can know in detail the information from the origin to the end.


Greater transparency and visibility in the supply chain:

The blockchain enables transparency in all transactions throughout the supply chain. Where everyone involved can access information in real time, reducing risks and fraud. Trust and transparency are great advantages that blockchain brings to logistics.


Improved security and authenticity of logistics data:

The blockchain’s encryption technology makes it difficult to hack, which provides security to companies. Another important approach is that it provides data privacy, since the information is verified and protected, guaranteeing the integrity and authenticity of logistics data. This significantly reduces the risk of fraud and errors in the supply chain, ensuring its proper functioning. 



Blockchain in logistics allows high efficiency in the development of tasks. With its use, different phases of the supply chain are streamlined, saving time and costs, thanks to the reduction of complexities using automation and simplification of all processes. This improves ROI, making companies more profitable. 



The advantage of blockchain in logistics is that those involved can interact with each other, carrying out transactions and automating processes without intermediaries, since third parties are not necessary for the activities to work.



Blockchain implementation in logistics also generates consumer loyalty and trust thanks to the fact that customers can access the history of the product and this generates a positive attitude towards consumers.


Speeding up payment and invoicing processes:

With blockchain in logistics, payment and invoicing processes are simplified and streamlined, resulting in shorter waiting times, automated tasks and fast, secure and efficient transactions.


Blockchain emerges as a disruptive technology with the potential to radically transform the logistics industry. It has become a tool that helps reduce supply chain complexities and increase efficiency and transparency. With a greater understanding and adoption of this technology, companies can optimize their operations and provide a more reliable and efficient service to their customers. At VYNMSA, we are dedicated to the construction of industrial parks that contribute to the development of diverse companies focused on their supply chains. Contact us to learn more about our work.

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