Samsung to use Blockchain Technology
April 16, 2018 1:25 pm
Blockchain technology to be Used by Samsung to Manage its Global Supply Network
The world’s largest smartphone manufacturer and semiconductors might use blockchain technology for managing its huge global supply network.
Song Kwang-woo, the blockchain chief at Samsung SDS Co., the group’s logistical said that Samsung Electronics Co. would be considering a blockchain ledger system for keeping track of global shipments worth tens of Billion of dollars a year. The system could decrease shipping costs by 20 percent.
The move comes after the companies around the world have told they are planning to expand blockchain technology on everything from cross-border payments for tracking the life-cycle of supermarket chickens, Samsung Group is one of the first global manufacturers which is considering a serious look at using the distributed ledgers in its progress. SDS is working on the system for Samsung Electronics, the conglomerate’s crown jewel.
Mr. Song, who’s also a vice president at SDS said:
“It will have an enormous impact on the supply chains of manufacturing industries. The blockchain is a core platform to fuel our digital transformation.”
According to International Business Machines Corp., Blockchain Technology in the shipping industry says the technology decreases the time required to send paperwork back and forth and to coordinate with port authorities. Documentation costs for container shipments are more than twice as significant as those for transportation, which is operating with A.P. Moeller-Maersk A/S for tracking cargo movements and convert shipping paperwork.
SDS is expanding to handle 488,000 tons of air cargo and 1 million 20-foot-equivalent (TEU) shipping units this year. It might also be included by the organic light-emitting diode displays and Galaxy S9 phones made by Samsung Electronics. A blockchain system could help the organization decreases the time delay between product launches and actual shipments, making it easier for respond to rival products and shifting consumer desires in emerging markets like China, according to Cheong Tae-su, professor of industrial engineering at Korea University in Seoul.
Mr. Cheong said:
“It cuts overhead and eliminates bottlenecks; It’s about maximizing supply efficiency and visibility, which translates into greater consumer confidence.”