Logistic Giant FedEx’s CEO says adopt New technology like Blockchain or Be Disrupted
“Blockchain Technology has the potential to revolutionize what’s across the border completely.”
While speaking at an event in New York today, Mr. Fred Smith
, chairman, and CEO of the U.S. logistics giant FedEx double down his commitment to adopting blockchain
tech as a way for the decade-old organization to keep up its game in the fast-changing digital world.
Mr. Fred Smith described that one major problem the logistics and transportation industry had confronted the “massive amount of friction” in the cross-border, logistics, as different nations have different standards, regulations, and terminologies.
Mr. Fred Smith told the audience:
“For cross-border shipments, ‘trust’ is a legal requirement for every transaction. What blockchain has is a potential for the first time to make the information available for everybody.”
As the FedEx Chief lauds the “chain of custody” that blockchain technology can be brought to the entire logistics industry.
All this talk isn’t just hot air, in February this year, FedEx joined the Blockchain in Transportation Alliance
(BiTA) to explore possible blockchain applications besides other partners within the logistics industry.
At the time, the company also started a pilot program to establish what information would be required for a distributed ledger to reduce conflicts between customers sending and receiving goods through FedEx. The shipping giant further wants to use blockchain technology to store its records.
Further speaking at the panel session, FedEx’s CIO and executive vice president of information services Mr. Robert Carter
stated that the firm would first search that deployment in the freight industry, as one single ship could contain millions of transactions at the same time.
Mr. Robert Carter said:
“We move easily 12 million shipments a day and that more than doubles during the peak seasons. While we believe this technology is going to scale, right now it makes sense for us to do this in our freight world.”
Responding to a question from the panel’s host, author Don Tapscott on how he convinced Mr. Fred Smith to approve the decision on blockchain technology research, Robert Carter stated, in fact, it was the other way round.
Mr. Robert Carter stated, “It’s Fred that dragged me into this.”
“The application of these custody chains is so critical to the information aspect. We’re operating on this plane between the physical world and the digital world.”
Speaking on the significance of moving with the times as a company, Fred Smith said:
“If you are not operating at the edge of new technologies, you will surely be disrupted. If you are not willing to embrace new technologies like the internet of things and blockchain to face those new threats, you are, maybe subtly, at some point going to extinction.”