Report on Block Chain Technology in Saudi Logistics

The blockchain could be described as the distribution that is focused as the digital ledger of transactions that can record not just financial transactions, but there is also the virtual analysis for everything of value. The blockchain can be described as the form of "blocks" that are batched or focused so that there could be an analysis of the latest transactions (Peters & Panayi, 2016). There are significant benefits of the blockchain as the financial institutions can get the benefits; they are peer-to-peer nature and focus on the lower costs. However, other interests include the reduced processing times; it also improved transparency. Therefore, blockchain should be used.

There are several benefits of using blockchain in the global supply chains. However, there are also benefits to the business models, financial services as well as the healthcare, etc. the interest related to the enhanced security and increased efficiency are also there. Moreover, using blockchain can also increase the speed of transactions and reduced costs of the operations. With the use of blockchain technology company could maintain the subsequent records of the entire network and the sales in this way, can be more accurate, consistent as well as transparent. There is better management of the record-keeping systems and issues are resolved regarding the complex supply chain and human error.  The risks that are concerned to the blockchain are data confidentiality risk, regulatory and compliance risk, IT security risks, etc.  (Swan, 2015) Complexities could be there in the blockchain technology; as blockchain can include issues related to the fatal flaw and human error. Companies could also face challenges associated with the security flaw. Blockchain protocols can also have side effects related to politics as this technology can digitize governance models, and there could be issues related to the incentivized governance.

Saudi Logistics currently involves a shipping network that is working efficiently; without any data inconsistency, it has reliable data history. However, the blockchain is considered as a reliable way to operate the shipping network in Saudi Logistics. With the global footprint the blockchain technology, Saudi Logistics also considered the effective collaboration of it as there is a focus on the success of the supply chain through building blockchain architecture (Logistics Middle East Staff, 2019).

According to the research conducted by Lindman, Tuunainen, & Rossi (2017) the blockchain technologies can effectively promote the digital platforms and services of the companies. However, there are technical and legal issues with the understanding of blockchain. It is analyzed in the research that blockchain technologies can promote the competitive environment. However, there can be technology design issues or both risks and opportunities both are included. For the technical innovations in digitalization blockchain technologies have given several benefits to the business for the managing contracts (Lindman, Tuunainen, & Rossi, 2017). The use of blockchain technology in Saudi Logistic aims to ensure the system as to enhance the private sector participation and create the regulations that ensure benefit for the Kingdom logistics capabilities.

With the significant focus area in logistics, blockchain features are accurately measured by the Saudi Logistics as in the shipping network there is up to date information regarding the logistics service providers that can be a third party or multiple service providers. However, the information regarding the moving materials is decided in the distributed digital ledge so that there could be a better analysis of the shared digital currencies and logistics operation among different parties. Saudi Logistics through blockchain technology is ensuring the data clean and accurate progress projects for logistics (Logistics Middle East Staff, 2019).

It is accessed from the article that not only in the logistics companies but also universally blockchain concerns are recognized, however, the Global Shipping Business Network (GSBN) has some acceptable blockchain solutions and it also resolves the shipper's issues. Moreover, the documentation issues are also resolved and there is the support to the blockchain shipping pilot to enhance the security of stakeholders (Roychoudhury & Shetty, 2019).

Saudi Logistics (Saudi Vision 2030)

There are critical advantages of the use of blockchain technology in Saudi Logistics as the monetary or financial organizations can get the advantages and can lower down the costs. In any case, different interests incorporate the diminished preparing times; the blockchain ought to be utilized in Saudi Logistics as there could be a better speed of exchanges and diminished expenses of the activities. With the utilization of blockchain, innovation organizations could keep up the resulting records of the whole system to gain the benefits.

Saudi Logistics is concerned about the use of blockchain technology because the benefits are identified; however, in the establishment and the Saudi Vision 2030, the Kingdom will focus on the efficient program of blockchain technology in the logistics department. Consequently, blockchain technology with the Saudi Vision 2030 has aimed to establish the logistics of the country as a logistics hub so that there could be a benefit in Saudi Arabia and mutual benefits can be given to other countries. Moreover, the major aim of the Saudi Vision 2030 concerned with the shipment or logistic industry is to become successful in the blockchain technology through providing benefits to vast markets of Asia, Europe, and Africa by location midway and there should be detailed roadmap outlining about the governance structures. There is the aim to enhance the private sector participation and create the regulations that ensure benefit for the Kingdom logistics capabilities. By considering the public-private partnerships and collaborative initiative of blockchain technology in Saudi Logistics there should be decisions on the governmental entities and it can enable Saudi Logistics to ensure transparency of shipments (Dzone.com, 2019).

Successful Implementation in Saudi Logistics

Blockchain is now considered as a significant area in the Logistics sector. However, it can benefit the entire shipping network without any data inconsistency. Saudi Logistics is also managing the digital ledger and focused efficiently on the logistics service providers. There rare proper application vendors and benefits related to end-to-end shipment tracking. Saudi Logistics has managed the complexity, ability to disrupt operations, cost due to the blockchain’s as it also helps to optimize its logistics operations (Dzone.com, 2019).

Saudi Logistics is actively concerned on the Vision 2030 between the cross-functional organizations. There are concerns to provide advantages to the government and private sectors. Government entities are also helping the sector to achieve the goals of the Kingdom’s Vision 2030. Moreover, as focused in the article that Mohammed Al-Otaibi who is working in the General Customs Authority as the general manager of information technology said that there are benefits related to the use of blockchain technology and in this way digital transformation can help the Saudi Customs to facilitate as there could be business development in the cross-border trade. Security of supply chains can also enhanced and 80 percent of trade profit can be there (Logistics Middle East Staff, 2019). Traders can also get the benefits by reducing time and also enhancing the shipping procedures or global supply chains for reliably deliver, the safety and the reliability of the trade.

Block Chain Technology in Saudi Logistics

Saudi Logistics also getting the benefits through the use of the blockchain technology as there are concerns by the financial industries in order to cut costs and increase the transparency; it is announced that there should be open APIS accuracy in the architecture technology platform by the collaborators. However, Saudi Logistics can get benefits related to data security in the shipping and logistics industry. Saudi Logistics can also improve the existing processes because it can offer a solution to most current technology issues or certain challenges associated with the use of new technologies. Implementation of blockchain can result in successful utilization to reduce supply chain trade barriers by implementation of best strategies (Robinson, 2019).

On September 21, 2019, Saudi Ports Authority, Saudi Customs and the Ministry of Communications and Information Technology take the decisions regarding the Saudi Logistics that there should be concerns about the use of blockchain technology. It is noticed by the departments that the logistics can result in the successful completion of a for the booming blockchain pilot. There are decisions that and tracking a shipping container should be done that are sent to the Dammam to the port of Netherlands (Rotterdam) from King the Abdulaziz Port.

Saudi national customs tracking platform is benefiting by the software blockchain technology and there could be benefits to the public and private stakeholders regarding the cross-border trade. Linux Foundation technology is concerned by Saudi Logistics under the use of blockchain technology so that there could be more efficiency in the distributed ledger technology. Saudi Logistics has gained economic value, can record transactions in the logistics industry.

Saudi Logistics through this consensus mechanism can create different interests between parties with innovations related to the central authority. Saudi Logistics is getting benefits from software blockchain technology in order to prevent instances of fraud, loss of records, there is more reliable shared database errors or corruption, process transactions this could result in secure and transparent means in the shipping industry. There are benefits analyzed to Saudi Logistics by blockchain pilot shipment that was implemented by the authorities on March 27, 2019. As it was considered to ensure standardization that whenever the container entered King Abdulaziz Port, there should be proper FASAH registration and communication across under the declaration to Saudi Customs. The blockchain pilot container can be supported through the TradeLens by means of using the Dutch Port Community System. There should be proper stakeholder documentation in the digital service connecting smart Dutch ports because in this way, all the operations of Saudi Logistics can be handled and monitored effectively by making the blockchain-backed shipment documents and whenever the container come in Saudi Arabia.

Blockchain technology in Saudi Logistics has the fundamental shift in the modern era as with the use of the distributed database system there is the focus on centralized to decentralized data so that there could be collaboration and transparency in the sector. However, Saudi Logistics is influenced by the use of technology; as it support operation in the highly fragmented logistics industry. Thus, blockchain technology also reduces supply chain trade barriers and it has increased global trade by 15% as well as the global GDP 5%. Blockchain technology is the preference for industry adoption. Saudi Logistics applications are supporting the global trade area following the governance of standards and through reviewing the enterprise applications. The following are some benefits that Saudi Logistics as the BMW and DHL are also getting from the use of blockchain technology (Logistics Middle East Staff, 2019). 

Leaner Logistics in Global Trade

Saudi Logistics is also concerned with the use of blockchain technology because leaner logistics in global trade is supported and there is the progress of goods by the supply chain parties. blockchain technology can result in evaluating the status of customs document and there is the focus to get the data that is essential in the shipment or logistics process. Saudi Logistics can also get the benefits through the use of the blockchain technology as there could be updates for the key trade documents, digitalized with participants issuing, receiving the original bill of lading transferring. There could be protection against the fraud, costs across the supply chain and reducing delay, etc.

Improving Transparency and Traceability of Block Chain Technology in Saudi Logistics

Saudi Logistics also getting the benefits through the use of the blockchain technology in the case of the supply chain because it is improving traceability and transparency of the goods, with the blockchain technology can focus on the decentralized networks, monitoring goods, provenance, etc. Saudi Logistics likewise getting the advantages using the blockchain innovation is basic for the Saudi Logistics for the improvement of the recognition and creditability.

Saudi Logistics also enabling comprehensive and current capabilities in order to handling requirements that can be related to the food tracking, therefore, blockchain technology is essential for the Saudi Logistics for the improvement of the traceability and transparency.  Additionally, blockchain innovation can convey a presentation edge through productively recognize store network bottlenecks.

Automating Commercial Processes of Block Chain Technology in Saudi Logistics

Saudi Logistics getting the benefits in the automating commercial processes through use of the blockchain technology as it has made marketers able to focus on the instantaneous payment, greatly enhance payment times that is beneficial for parties, there is effective selection of the payment methods moreover, it has reduces the invoicing errors and benefits related to the initiating payment. It is analyzed that in the future there are benefits to Saudi Logistics by the use of blockchain technology because there will be machine-to-machine payments.

Recommendations of Block Chain Technology in Saudi Logistics

It is recommended that block chain in maintaining the logistics platform is important as in the article by Ehlers (2019), there is a focus on the effectiveness of vital business applications considering the supply chain or logistics, as noted that through the use of the blockchain technology the companies could get the actionable insights and there could be extensive pools of data. However, the companies can transform digitally themselves by drive better business as Saudi Logistics can also focus on streamline workflows, performance in t his way. Moreover, in the article, there is a description of the expense of maintaining the logistics platform as enterprises could completely transform operations. For the Saudi Logistics through blockchain innovation fruitful use there should be viable execution procedures, considering the examination on the transportation and coordinations industry that there is the need to improve the current procedure worried about the usage of blockchain in light of the fact that there are sure difficulties related with the actualizing of the innovation.

It is recommended that there should be use of the shipping pilot strategy and there should be the proper uses of documentation issues as it can resolve issues with the support to the blockchain shipping pilot to enhance the security of stakeholders. By the intelligence and actionable insights companies through the use of blockchain technology can collect and process data and there could be benefits related to the more intelligent and productive work. Saudi Logistics should focus on the applications and solutions strong for the competitive edge in the countries. It is the era of digital transformation so the production and distribution process should be done intelligently by Saudi Logistics. By the knowledge and significant bits of knowledge organizations using blockchain innovation can gather and process information and there could be benefits identified with the more insightful and beneficial work. However, blockchain technology can result in effective decision-making and it can also reduce the handling costs. blockchain technology supports the companies to gets inventory back, transform workflow and focus on the sale more quickly. Moreover, blockchain technology can deliver a performance edge through efficiently identify supply chain bottlenecks (Ehlers, 2019). It should be noticed that blockchain is considered as a reliable way to operate the shipping network in Saudi Logistics so it should be implemented efficiently. 

Conclusion of Block Chain Technology in Saudi Logistics

It can be concluded after considering the research on the shipping and logistics industry that there is the need to improve the existing process concerned with the implementation of blockchain because there are certain challenges associated with the implementing of the technology. For the Saudi Logistics through blockchain technology successful utilization there should be effective implementation strategies. Saudi Logistics is getting advantages in different sectors through blockchain innovation is guaranteeing the information perfect and exact advancement ventures for coordination’s.

It is also concluded that Saudi Logistics has resolved the documentation issues are also resolved and there is the support to the blockchain shipping pilot to enhance the security of stakeholders and is getting profits by programming blockchain innovation so as to avoid cases of misrepresentation, loss of records and process exchanges this could bring about secure and easy methods in the transportation business. Saudi Vision 2030 concerned with the shipment or logistic industry is to become successful in the blockchain technology. Saudi national traditions are profiting by the product blockchain innovation. Saudi Logistics under the utilization of blockchain innovation is more productive and has increased monetary worth also recorded exchanges in the coordination’s business. Saudi Logistics also getting the benefits through the use of the blockchain technology in the case of the supply chain because it is improving traceability and transparency of the goods.

Saudi Logistics has gained economic value, can record transactions in the logistics industry. Implementation of blockchain can result in successful utilization to reduce supply chain trade barriers by implementation of best strategies as traders can also get the benefits by reducing time and also enhancing the shipping procedures or global supply chains for reliably deliver, the safety and the reliability of the trade. Shipping and logistics industry should use the blockchain in the global supply chains as it considered many interest, attention and benefits related with the  enhanced security and increased efficiency are also there. Blockchain as the financial institutions is recommended because it has the significant benefits of the can get the benefit and focus on the lower costs. However, other interests include the reduced processing times; it also improved transparency. Therefore, blockchain should be used.

Saudi Ports Analysis Use of Blockchain

Source: (Manaadiar, 2019) (Roychoudhury & Shetty, 2019

References of Block Chain Technology in Saudi Logistics

Dzone.com. (2019). Blockchain for Logistics: Considerations for Successful Implementation. Retrieved from https://dzone.com/articles/block-chain-for-logistics-considerations-for-succe

Ehlers, D. (2019). Comment: API Platforms and blockchain will transform logistics. Retrieved from https://www.logisticsmiddleeast.com/technology/33670-comment-api-platforms-and-blockchain-will-transform-logistics

Lindman, J., Tuunainen, V. K., & Rossi, M. (2017). Opportunities and risks of Blockchain Technologies–a research agenda. Proceedings of the 50th Hawaii International Conference on System Sciences , 1533-1542.

Logistics Middle East Staff. (2019). Saudi Customs, port authority and Maersk team up to champion blockchain. Retrieved from https://www.logisticsmiddleeast.com/technology/34105-saudi-customs-port-authority-and-maersk-team-up-to-champion-blockchain

Logistics Middle East Staff. (2019). Video: DHL and BMW team up for Blockchain Proof of Concept. Retrieved from https://www.logisticsmiddleeast.com/video/33355-video-dhl-and-bmw-team-up-for-blockchain-proof-of-concept

Peters, G. W., & Panayi, E. (2016). Understanding modern banking ledgers through blockchain technologies: Future of transaction processing and smart contracts on the internet of money. In Banking Beyond Banks and Money-Springer , 239-278.

Robinson, A. (2019). Blockchain Technology in Logistics: What Are the Implementation Challenges? Retrieved from https://cerasis.com/blockchain/

Roychoudhury, J., & Shetty, P. (2019). The Use of Blockchain Technology in Saudi Logistics. Instant Insight , 1-10.

Swan, M. (2015). Blockchain: Blueprint for a new economy. O'Reilly Media, Inc.