Samsung considering blockchain for its global supply network
Korea’s Samsung Electronics is looking to use blockchain to manage its global supply network, said a report.
The firm is considering using the technology to track its global shipments and thereby cut shipping costs by 20%, said Song Kwang-woo, the blockchain chief at Samsung SDS Co., the group’s logistical and information technology arm, in the report by Bloomberg.
“It will have an enormous impact on the supply chains of manufacturing industries,” He said. “Blockchain is a core platform to fuel our digital transformation.”
Samsung SDS Co. is expected to work with 488,000 tonnes of air cargo and one million 20-foot-equivalent shipping units this year, said the report. In the report, a Korea University professor said the use of blockchain in handling cargo would help the electronics maker reduce time frame between product launches and shipments, thereby helping the company respond to rival products in emerging markets such as India and China. “It cuts overhead and eliminates bottlenecks,” the professor said. “It’s about maximising supply efficiency and visibility, which translates into greater consumer confidence.”
Samsung’s plans come at a time when major cargo companies including AP Moller-Maersk have been considering blockchain solutions to streamline operations. AP Moller-Maersk is said to be involved in a blockchain project with Armonk-headquartered IBM.
According to John-David Lovelock, research vice-president at research firm Gartner, patterns related to information-technology spending will shift even as businesses continue to invest in IT anticipating revenue growth. Projects in digital business, blockchain, Internet of Things, and others will continue to be the main drivers of growth in IT spending.
Global IT spending is projected to reach $3.7 trillion in 2018, an increase of 4.5% from 2017, said a report by Gartner.
“Global IT spending growth began to turn around in 2017, with continued growth expected over the next few years. However, uncertainty looms as organisations consider the potential impacts of Brexit, currency fluctuations and a possible global recession,” said Lovelock.