CargoX. Heaps of benefits for lower costs. What more can you wish?
How to adapt the processes in the company to accommodate the Smart B/L - what are the optimisations that come with it, how it ultimately helps the companies do their business? Let’s take a look.
Life is fast and is clearly not slowing down. Modern trade is no exception. Getting streamlined with digitalisation and connectivity, most of its business processes went into 6th gear.
But, then, the global shipping business has its soul. Riddled with strict rules and conservative tradition is rarely seen adopting a revolutionary innovation. Of course, there were some in the past; port operations are nowadays automated and robotised, ships are fast and trackable and they’re navigating oceans with a helping hand of modern technology. Corporate databases are offering quick inquiries into past transactions. However, last truly landmark innovation of the branch was probably the adoption of the standardised container in the 1960s. And most importantly, today's vast shipping network still relies heavily on paper documents and human couriers.
All of this is soon to change. And it’s about time to.
International trade is predominately based on trust and transparency, so physical documents prolonged their service until now because they inspire confidence. On the other hand, some digitalisation already happened. Some segments are already available through online services. But this was never a complete solution as digital documents have two well-known fails. First, anyone can copy them and second, they are prone to cyber-attacks.
The only solution that covers all the answers is blockchain data storage in the cloud. A solution that is transparent, safe from fraud and always accessible through the internet. Without any extra infrastructure needed, simply because of the nature of the blockchain technology.
But there are factors in every branch that are hindering quick evolution. Usually, such projects take time, they probably need some investment and finally, some human will to adopt the changes. Especially for the latter, one will need to provide meaningful advantage based incentives to executives and staff. Both are sometimes uninterested in making changes in the way they work.
So what will it take to do it? And what do you get if you do it?
The great news is that your office probably already has everything needed to jump on blockchain B/L train. That is broadband internet, basic security and minimal staff awareness.
On the other hand, once you made the step, you will be greatly rewarded with numerous optimisations. To list just a few:
· Incomparable accessibility. CargoX solution works in the cloud, so it is always accessible from anywhere on the world through ordinary internet connections.
· Ready deployable. Our solution is easily deployed and managed. It doesn’t even require things like VPN tunnel. Simply because of combining openness and security respectively, when needed.
· Dependability and security. While all transfers of B/L ownership are stored in a public blockchain, thus openly accessible - users’ identities are obfuscated by their blockchain addresses. Meaning, their real identity is visible only to others sharing the same B/L. Similarly, the content of the B/L document is securely encrypted and again visible only to involved parties. Furthermore, there is no central storage to be targeted by hackers.
· Faster access and document visibility. A smart B/L can be issued instantly and can be momentary - just like email - transferred to the legal owner of the goods, with no middlemen or expensive couriers.
· Always up-to-date. One of the key properties of all cloud solutions. Wherever you are, data comes from one primary source, even though may later be distributed. Every single change is instantly relayed to every node.
· One time KYC. Our records are uploaded in the registry. One has to merely pull down the KYC records from the central registry CHECK
· Data at the tip of your fingers. Our archives ensure availability of your past customers and transactions for XXX. (CHECK) Get clear and objective past statistics whenever you need it.
· Auditable & Fraud-proof. The current concept of paper B/L operations is prone to fraud simply because there is no real-time mechanism to timestamp transactions. The CargoX Smart B/L records each action on the blockchain together with a time-stamp. What you get from this is a secure and transparent way of handling cargo transfers.
· Less paperwork. As mentioned before, until now a single shipment required hundreds of pages that needed to be physically delivered to dozens of different agencies, banks, customs bureaus, and other entities. Even more. As the cost and size of the world's trading ecosystems continue to grow more complex, the cost of the required trade documentation is expected soon to reach one-fifth of the actual physical transportation costs. With the adoption of CargoX Smart B/L all of this suddenly becomes thing of the past.
· Lower IT costs. As we provide all the necessary management of CargoX infrastructure, implementing our solution doesn’t cause any additional costs. Furthermore, our product delivers virtual resources which enables reduction of company investment into physical on-location hardware.
· Lower costs in general. All of the above will provide business processes all around transformation, making them less dependable on manpower and material costs.
And there are many more points of future benefits. According to The World Economic Forum, by reducing bureaucratic barriers within the international supply chain through transparent, digital transactions and communications, global trade could increase by nearly 15 %, therefore boosting economies and creating jobs. The cost of moving goods across continents could drop dramatically, making it more easily accessible to relocate manufacturing or source materials and goods from overseas.
So, all we need is to embrace a change. A change in business processes and a change in our human perception of things.
Somehow, the situation nowadays is very much similar to one at the beginning of the era of computerisation. Remember the end of the eighties? When people struggled in fear of machines and were hanging for the dear typewriters?
It’s the well-known fear of unknown. Which can only be overcome by knowledge and little of that entrepreneur’s boldness. The two factors that propelled world business forward for centuries. As it is in CargoX case, without significant risks. On the contrary. There is much to be benefited from.