Transforming Your Supply Chain Business Networks with Blockchain Technology

Supplychain 24/7 | October 06, 2016

Transforming Your Supply Chain Business Networks with Blockchain Technology
My family is currently experiencing the joy of purchasing a new home.

One of the painful parts of acquiring a new home, however, is the trail of paper and documents that need to be exchanged, signed and validated.

Between mortgage lenders, insurance companies, inspections and government checks, it can be a lengthy process to legally and safely buy our new home.

Each day, people like me, as well as enterprises and governments, buy and trade assets through complex business transactions: from simple deals like purchasing a new car to more complex cross-border trades.

The friction - or inefficiency - of various brokers exists across even simple business networks that take time, incur costs, and increase risk.

Imagine fundamentally changing how business deals are executed by reducing time, cost and risk with blockchains.

A New Reality for Blockchains
At the ‘Blockchain in the Open’ event at the Churchill Club in San Francisco, IBM Institute for Business Value (IBV) announced a new study ‘Fast Forward: Rethinking enterprises, ecosystems and economies with blockchains’ which outlines how this vision will soon become a reality.
The study is the first in a new series examining how blockchains can vaporize frictions to bring new speed, efficiency and transparency to all levels of the business network from enterprises to ecosystems and economies.

In contrast to most business automation today, distributed ledger technologies like blockchains are built on shared ledgers where participants write transactions in near real-time to an unbreakable chain that becomes a permanent record of an asset or transaction.

This is viewable by all parties in the transaction.

In the study, we observe that despite many technology and business innovations, three types of frictions still predominate - lack of access to information, interaction such as transaction costs and innovation including restrictive regulations - and are holding back business growth.

We identified five key attributes of the emerging blockchain technology including how its distributed across the network, yet secure, transparent, consensus-based and flexible - and how these attributes have the potential to vaporize existing frictions and profoundly impact current business models.

Consider how assets from cars to warranties, art to corporate bonds – even identity-based assets, like health or tax records – can be shared, exchanged or transferred on a blockchain platform with far greater efficiency and pose less risk to privacy.

As transaction costs plummet and the way organizations are governed matters more and more, blockchains will create a new distributed form of business governed and managed transparently with digital contracts that include by-laws agreed on by consensus.

Blockchains will also eliminate the need for costly third party institutions or intermediaries to broker trust because smart contracts, certifications and digital compliance will optimize transactional relationships.

Decreasing Friction; Increasing Trust
As blockchains accelerate the flow of capital and the creation of wealth, our economies and interactions will be less subject to the fits and starts of friction, and instead head toward something more like perpetual motion: a state of fast forward.
New services delivered on blockchain networks may accelerate access and liberate those that were once locked out of efficient value creation to fully participate in an “all-in” economy.

These monumental changes may reset the clock on the science of organizational management, the tightening of trust and the economics of wealth creation.

As a result, blockchains will enable profound economic progress enjoyed and driven by a greater number of individuals and organizations.

While blockchains can powerfully improve businesses’ efficiency, trust and value, C-Suite executives must carefully evaluate where blockchains can give them the greatest gains for their business and where they do not.

We recommend in our study that businesses answer these three questions:
1. How fast should I move?
2. Can we achieve network-wide accepted standards?
3. How can I scale with new revenue models?

This cross-industry report is the first in a series by IBM’s IBV over the coming months.
We plan to interview over a thousand executives on their experiences, intentions and expectations about the technology’s impact on their businesses.

About the Author
Veena Pureswaran is Global Research Leader, Blockchain at the IBM Institute for Business Value
Source: Reprinted with permission of Longitudes, the UPS blog devoted to the trends shaping the global economy.


In today’s on-demand economy, consumers have come to expect rapid delivery times. Drone technology represents one way e-commerce businesses can accelerate delivery times. Unlike delivery trucks, drones can travel “as the crow flies” – skipping over traffic congestion and complicated navigation paths. According to The Walker Sands Future of Retail 2016 Study, 79% of US consumers said they would be “very likely” or “somewhat likely” to request drone delivery if their package could be delivered within an hour. What’s more, faster fulfilment times brought about by drones could result in lower shipping costs for the customers, meaning more sales and higher revenues for businesses.


In today’s on-demand economy, consumers have come to expect rapid delivery times. Drone technology represents one way e-commerce businesses can accelerate delivery times. Unlike delivery trucks, drones can travel “as the crow flies” – skipping over traffic congestion and complicated navigation paths. According to The Walker Sands Future of Retail 2016 Study, 79% of US consumers said they would be “very likely” or “somewhat likely” to request drone delivery if their package could be delivered within an hour. What’s more, faster fulfilment times brought about by drones could result in lower shipping costs for the customers, meaning more sales and higher revenues for businesses.

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Polish Freight Railcar Operator Eurowagon Goes Digital With Nexxiot

Nexxiot | August 13, 2021

Eurowagon, the operator of Poland’s largest pool of independent rental freight railcars, has selected Swiss IoT pioneer Nexxiot to digitize the company’s cargo fleet. Through the full deployment of Nexxiot’s industry leading, proprietary hardware sensors and cloud-based software solutions, Eurowagon will achieve for its cargo fleet and customers an unparalleled standard of safety and transparency. Founded in 2018, fast-growing Eurowagon has quickly become the leading private operator of freight railcars in Poland by maintaining an agile approach that enables rapid expansion as well as the integration of the latest technology advances in the industry. This digitization partnership with Nexxiot will ensure next level accountability to its clientele, which include some of Europe’s leading shippers. “Transparency and security improvements through digitization are trending topics around the world but are often met with institutional impediments. Eurowagon’s youthful agility enables our company to adopt the latest technological innovations to stay competitive,” explained Marek Gołębiewski, Eurowagon’s Technical Director. “We are free from legacy issues because we are able to take a ‘greenfield’ approach and ensure digital readiness from day one. This partnership will enable us to respond to the needs of our customers in real time, remaining at the forefront of industry trends. By 2026, we will increase our fleet to 4,500 wagons, becoming the largest professional rolling stock company for the rental of rail freight wagons in Central and Eastern Europe. To achieve this, we continue to integrate the latest technologies and ideas into the company now to offer our clients the best possible service.” Nexxiot’s gateway devices, called Globehoppers, will be used to equip Eurowagon’s non-powered freight wagons and deliver data in real time. This data allows decisionmakers to gain full visibility and transparency into their daily operations. This cutting-edge technology ensures that rail processes are as secure and efficient as possible. Regarding fleet safety, Eurowagon expects digitization to add significant value. Mr. Gołębiewski continued, saying “Nexxiot’s solutions help us supervise the planning of periodic repairs and prevent potentially dangerous situations through continuous fleet monitoring. In the rare cases where unplanned incidents occur, real-time notifications via the Nexxiot intelligent cloud are a great advantage as we are able to quickly pinpoint exactly where and when the event occurred, which wagons were affected and how severely due to in-depth shock analytics. The data insights will also help us speed up the regulatory processes required to investigate any potential event. We are pleased with Nexxiot's openness to derive significant experience and adapt the product to our individual needs." Nexxiot CEO Stefan Kalmund sees a special correlation between transparency and security, remarking, “Security has a lot to do with trust. Nowadays, digital solutions that create transparency in operations allow companies to provide their clients with all the relevant insights and proof of ‘duty of care.’ Together with the team at Eurowagon, we are able to explore the specific needs of the Polish market and collaborate in finding the perfect customized solution for the company. In the process of working together, we found that Nexxiot and Eurowagon are a natural fit, because progressive thinking around data-driven innovation is a priority in both companies." About Eurowagon Eurowagon is a new alternative for customers on the European rail car leasing market. The company was established in 2018 and is a portfolio company of CEE Equity Partners Ltd. Eurowagon presently owns and manages roughly 1,500 freight railcars, and expects to expand to approximately 4,500 wagons by 2026. Eurowagon enterprises include rental of railcars to freight and industrial clients, railcar management and maintenance. The headquarters of the company is in Poland and, since 2020, Eurowagon has also maintained operations in Switzerland, France and Austria. About Nexxiot Nexxiot AG is a driver of the digital logistics of tomorrow. An industry leader in the digitalization of cargo transportation, Nexxiot empowers global shipping companies and suppliers to harness the power of their data through proprietary, cutting-edge technology and integrated data solutions to track, find and protect cargo from more than 160 countries around the world and across 450 network roaming partners to ensure accountability, security and efficiency. Headquartered in Zurich, Nexxiot operates throughout Europe and the U.S., employing people from 21 countries. The company’s secure, industry leading Cloud comprises data from over 2,5 billion travelled miles. 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LaneAxis to Fast Start with Industry-First Broker-Free Direct Freight Network

LaneAxis | December 02, 2020

Riding a strong tailwind of demand and discontent, LaneAxis, Inc., a supply chain-centered SaaS organization, is seeing fast and eager extension of the LaneAxis Direct Network following its ongoing launch. This eagerly awaited broker-free network isn't simply disturbing, however reinventing the manner in which goods are moved from A to B. The Network's essential mission: interfacing shippers directly to carriers, and in the process disposing of the freight industry’s most problematic player: freight brokers. This immediate model will reduce enormous expenses while adding huge efficiencies to an industry needing a significant redesign. “We understand cutting brokers out of the transportation equation will make us very unpopular in some corners,” says LaneAxis CEO & Founder Rick Burnett. “3PLs, brokers and purchased transportation have long filled in gaps in the supply chain. But LaneAxis’ patented technology and direct network solution is now available to fill that void, particularly for the 97% of trucking companies that are small and independent, owning just a handful of trucks. These are the very truckers who already hauling the freight today - but are simply unable to contractually go direct.” Burnett says brokers have held a near stranglehold on the freight industry for decades, particularly on the omnipresent “load boards” that are often labeled “shipper-carrier direct” – but in reality are broker posted loads. LaneAxis has revealed broadly on the reaction of outrage imposed by U.S. truckers against the freight brokerage industry in 2020. An absence of pricing transparency, low rates, and bad-faith strategies lead the list of complaints.

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Disruptive Acquisition Strategy Defines Noyack Logistics Income REIT, New UPREIT Designed for Shifting Cultural and Supply Chain Trends

Noyack | October 26, 2021

NOYACK Capital announces the launch of Noyack Logistics Income REIT (NLI), a holistic, future-focused private fund targeting logistics-relevant commercial real estate ownership. Its investments will be driven by a disruptive acquisition strategy informed by emerging needs for driverless car infrastructure, same day delivery, climate-controlled storage and other rapidly evolving logistics uses. Currently a private investment fund, NLI intends to qualify as a real estate investment trust, or REIT, commencing with its taxable year ending December 31, 2022, and is structured as an umbrella partnership REIT, commonly called an "UPREIT." NLI will target four key asset classes: Mobility hubs (a newly defined property type that merges structured parking with amenities such as driverless car portals and charging, package lockers and grocery cold storage), cold storage warehousing, dry warehousing, and healthcare. Our focus on mobility hubs and other future-forward logistics infrastructure is driven by our point-of-view that these logistics assets are undervalued relative to the market maturity of ecommerce and that they offer asymmetric risk–reward potential." CJ Follini, managing partner. Designed by investors for investors, NOYACK is a private investment manager founded by family office principals including Follini. NOYACK will seed the UPREIT with an estimated $30 million of its principal-owned industrial and parking assets, creating near-term dividend opportunities. NOYACK has developed NLI's TripleZero™ fee structure as one of the lowest in the REIT industry; investors are expected to receive 100% of invested capital and a 15% IRR before NOYACK, as external manager, earns any incentive bonus from the profits. "Our plans for Noyack Logistics Income REIT (NLI) include investing in approximately $500 million of future-forward logistics properties serving consumer and supply chain demands of the 2020s and beyond," explains Follini. "Recent disruption and technological advances have identified new value we see driving the potential for superior returns. Our proprietary market analytics look beyond the needs we know about for today's last mile. They anticipate next-mile imperatives for real estate agile enough to adapt to cultural shifts and new technology." NOYACK will oversee the initial subscription period commencing immediately through a Private Placement Memorandum available to accredited investors at and will also oversee operations of the new UPREIT as external manager. Originally founded by Follini in 2005 to represent and manage investments as a Multi-Family Office, NOYACK has managed over $1.0 billion of alternative real estate and venture capital assets, including assembling and disposing of a $300 million portfolio of healthcare properties. As managing partner of NOYACK and the investment manager of his own family office investments across multiple alternative investment sectors including real estate, Follini's deep experience crosses more than three decades and sectors from real estate to media and venture capital. Follini and his team will use their proprietary analytic to identify specialized assets meeting future-forward logistics realities such as increasing demand for specialized cold storage facilities serving food, grocery and healthcare; mobility hubs for autonomous vehicle parking and local delivery; package lockers; and other emerging needs of a modern screen-to-door economy.

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