Dnata’s cargo operations, in conjunction with Emirates Innovation Lab, IBM and flydubai Cargo, has created a new value proposition for cargo service delivery through the use of blockchain technology.
This has added value by eliminating redundant data and improve visibility and transparency for all stakeholders. As a result, processes can been more streamlined and simplified right from the origin to the final destination.
“Dnata has always been at the forefront of innovation, and the success use blockchain technology means greater security, efficiency and cost savings to our customers,” Kevin Ennis, Vice-President Commercial and Business Development for Dnata’s UAE Cargo Operations, said in a statement on Thursday.
Blockchain technology is a secure, public electronic ledger and peer-to-peer network that can be managed autonomously to exchange information between different parties.
In cargo, for example, much of the processes is traditionally paper-based, which requires multiple signoffs by inspectors and receivers before goods can be delivered. Even when the system is electronic, it still requires multiple parties to sign off on cargo shipments, creating a lengthy administrative process, the company stated.
To try and streamline this process, blockchain technology can be used to manage and track the paper trail of cargo containers by digitising the supply chain. In such a scenario, what makes blockchain infallible is that, no one party can modify, delete or even edit any one of the blocks without the consensus from others on the network.
Amr Refaat, General Manager, IBM Middle East & Pakistan, said that blockchain technology is bringing a whole new meaning to the cargo and logistics industry’s value chain.
“Whether it involves raw materials, manufacturing, or distribution to retailers and customers, the technology is smarter, faster, and is creating a new trust-based digital economy that allows all members of the ecosystem to join new business networks based on accountability and transparency to conduct transactions,” he said.