Samsung, the world’s largest smartphone and semiconductors manufacturer, is looking into using blockchain for its international supply chain, according to Bloomberg.
Song Kwan-Woo, Samsung SDS Co.’s blockchain chief, told Bloomberg that Samsung “is considering a blockchain ledger system to keep track of global shipments worth tens of billion of dollars a year.” The group’s logistical and information and technology arm. The system could cut shipping costs by 20 percent, according to SDS.
Although many companies, such as Santander, Bank of America and IBM are working on blockchain projects, Samsung is one of the first international manufacturer to take a serious step towards the implementation of a blockchain-based ledger.
“It will have an enormous impact on the supply chains of manufacturing industries,” said Song Kwan-Woo. “Blockchain is a core platform to fuel our digital transformation.”
Samsung SDS plans on handling 488,000 tons of air cargo in 2018, which includes the LED displays of the Samsung Galaxy S9 phones.
According to Cheong Tae-su, professor of industrial engineering at Korea University in Seoul, “a blockchain system may help the company reduce the time lag between product launches and actual shipments, making it easier to respond to rival products and shifting consumer appetites in emerging markets like China.”
“It cuts overhead and eliminates bottlenecks, it’s about maximizing supply efficiency and visibility, which translates into greater consumer confidence,” Cheong told Bloomberg.