dnata and partners Emirates Innovation Lab, IBM and flydubai Cargo have completed a proof of concept for cargo service delivery through the use of blockchain technology.
According to dnata, the new proposition adds value by eliminating redundant data and improves visibility and transparency for all stakeholders. Processes can therefore be more streamlined and simplified right from the origin to the final destination.
“dnata has always been at the forefront of innovation, and the success of our study to use blockchain technology in our operations means greater security, efficiency and cost savings to our customers,” said Kevin Ennis [third from left in photo], vice president of commercial and business development for dnata’s UAE cargo operations. “We are on the cusp of revolutionizing the way we operate, and the success of this initiative with our partners will give the industry a real boost towards seamless service delivery.”
In cargo operations, blockchain technology can be used to manage and track the paper trail of cargo containers by digitizing the supply chain. No one party can modify, delete or edit any part of the chain without the consensus from others on the network. This replaces the traditional paper-based processes that can create lengthy lead times.
“Blockchain technology has great potential to exponentially improve efficiency and transparency of business networks, especially in cargo and logistic flows,” said Neetan Chopra, senior vice president of IT strategic services at Emirates Group. “However neither the technology nor the potential is easy to understand or appreciate. Hence it is imperative to carry out such business experiments and trials so that participants can experience the benefits of breakthrough technologies in a live environment. I am delighted with the success of this trial. The Innovation Lab will now work with our partners and stakeholders to prepare the scale-out plan of this innovation to the larger cargo ecosystem.”
dnata and its partners jointly developed a logistics platform in which blockchain infrastructure was implemented for supply chain transactions from a purchase order, from the origin to delivery to the consignee warehouse at its destination. The four companies were able to identify issues from the technology, security, operation and legal perspectives, and were able to realize new supply chain services including the digitalization of documents.
“Blockchain technology is able to transform sectors far beyond financial services,” said Mohamed Hassan [centre in photo], vice president of flydubai Cargo. “It improves the way we work together in providing reliable and convenient air freight as it provides end-to-end services. As a result of this collaboration, flydubai Cargo has become the first airline to complete a proof of concept using blockchain technology in air freight transportation. We would like to thank all the stakeholders involved who have contributed to this milestone, and we look forward to the benefits that this technology will bring to the industry.”
Blockchain technology creates a secure, permanent and digital public ledger of transactions which can be shared amongst a distributed network of computers. In transport and logistics, blockchain enables the sharing of data across the supply chain, improving tracking of orders and reducing errors.
“Blockchain technology is bringing a whole new meaning to the cargo and logistics industry’s value chain,” said Amr Refaat [right in photo], general manager of IBM Middle East & Pakistan. “Whether it involves raw materials, manufacturing or distribution to retailers and customers, the technology is smarter, faster and is creating a new trust-based digital economy that allows all members of the ecosystem to join new business networks based on accountability and transparency to conduct transactions.”
