Supply chain management plays an important role in global commerce.
Globalization has opened the world to cross-border economic activity unlike ever before. In fact, many of the world’s largest businesses serve more customers outside their home country’s borders. As global trade has grown, one key business operation has grown in important: supply chain management.
Sustaining a global business involves the maintenance of inventories and product deliveries in many countries. Successful supply chain management is difficult due to the myriad business entities that are involved in just 1 shipment. Suppliers often deliver products through a shipping agent, who then passes documentation to the actual transporter; then, on the receiving end, are receiving agents, the shipment recipient. Additional agencies or government entities can be involved too.
Throughout the cycle, payments have to be made and documentation has to be passed from one party to another. Current technology can facilitate transfer of payment and documentations but not very efficiently. Not only can the transfers be slow, a matter of trust also plays a role since there isn’t enough transparency on the pass-over of documentation. When there’s an inefficiency caused by lack of transparency, blockchain technology provides an organic solution.
Creating a Blockchain-Powered Logistics Platform
The importance of logistics is undoubtable and the value it offers to global trade is only increasing as a greater number of countries are adopting an open market.
In an effort to combat the inefficiencies that hold back logistical advancement, the Open Enterprise Logistics (OEL) Foundation is leveraging blockchain technology to create a logistics platform for the world’s supply chains. The Foundation is creating the OEL Enterprise Architecture which will be open to industry participants. The project’s aim is to provide the best of existing blockchain achievements, along with internal logistics-specific developments, to provide an improved network for global supply chains.
The OEL Enterprise Architecture will provide participants the ability to process transactions—even cross-border transactions—with ease and low costs. As time is extremely important in trade, the provision of efficient transactional fulfillment stands to greatly benefit global logistical operations. Moreover, perhaps the most important value-additive of this development is the provision of transparency.
OEL Enterprise Architecture will allow all participants of a logistical operation to record all interactions with a shipment in a transparent yet immutable record. As proprietary information may be a part of the records, the technology integrates permissioned accessing. Thus, this development ensures all participants involved in a shipment can provide transparent access to important information to only each other.
Wrap-Up: The OEL Enterprise Architecture provides the logistics market with critical improvements: transparency, of interactions with a shipment, among a particular supply chain’s participants. This removes the concept of trust in critical business interactions.
🌐 Website: https://oel.foundation/
💡 Whitepaper: https://oel.foundation/assets/whitepaper/oel_foundation_whitepaper_v1.0.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=4437016.0
💻 Telegram: https://t.me/OELFoundation