Twitter CEO Jack Dorsey recently stated in an interview that blockchain would become the "next big unlock" and the technology could be used for more than just financial transactions. Samsung seems to be proving Dorsey right by considering a shift to a blockchain-based system to keep track of global shipping.
While blockchain is predominately used in cryptocurrencies, the digital ledger system has uses outside of finance. According to Bloomberg, Samsung thinks that blockchain's method of recording, verifying, and sharing transactions could drastically reduce paperwork and scheduling with port authorities. Samsung's head of blockchain, Song Kwang-woo, believes that this could slash shipping costs by 20 percent.
“It will have an enormous impact on the supply chains of manufacturing industries,” said Song, “Blockchain is a core platform to fuel our digital transformation.”
For consumers, increasing efficiency with shipping would also mean customers get access to products faster after its announced. Samsung could also pass the savings on the consumers and potentially sell products slightly cheaper than the competition. Cheong Tae-su, an industrial engineering professor at Korea University thinks that the reduction in lag time between product launch and shipment could help meet customer demand in places like China.
“It cuts overhead and eliminates bottlenecks,” Cheong said. “It’s about maximizing supply efficiency and visibility, which translates into greater consumer confidence.”
Samsung has not specified a timeline in which to implement blockchain within their supply chain but if the Korean tech giant can realistically improve their global shipping in a tangible way, we may see a drastic change in how tech companies utilize blockchain.