Fred Smith, chairman and CEO of the U.S. logistic giant FedEx mentioned at Coindesk’s Consensus 2018 in New York that “blockchain has the potential to completely revolutionize what’s across the border,” reported Coindesk on May 14.
Smith is embracing the blockchain technology and expressed that old companies like FedEx have to stay up-to-date with these emerging technologies if they want to maintain its game in the rapidly evolving digital world.
One major problem the logistics and transportation industry is facing is the “massive amount of friction” in cross-border logistics since the standards differ from a country to another Smith mentioned.
“For cross-border shipments, ‘trust’ is legal requirement for every transaction. What blockchain has is a potential for the first time ever to make the information available for everybody.”
FedEx CEO is positive towards the “chain of custody” that blockchain can bring to the entire logistics industry. The shipping company also plans to use the blockchain to store its record.
“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,” mentioned Robert Carter, FedEx’s CIO and executive vice president of information services.
Carter also expressed that FedEx will explore the application of the blockchain technology in the freight industry since one shipping can contain millions of transactions.
“We move easily 12 million shipments a day and that more than doubles during the peak seasons. While we absolutely believe this technology is going to scale, right now it makes sense for us to do this in our freight world,” Carter expressed.
Smith concluded by emphasizing the importance for a company to adapt to its evolving environment.
“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 internet of things and blockchain to face those new threats, you are, maybe subtly, at some point … going to extinction.”