FedEx ranks among the world’s biggest logistics management firms. It operates in an industry that is known for trust issues, difficulties in clearing and involvement of a lot of intermediaries, especially for international shipping. This company has found a solution to its core problems through various blockchain platforms that it has joined.
In mid-2018, Fred Smith who is the CEO of FedEx was quoted saying that “blockchain is the next frontier that will change and revolutionize the world of supply chains.”
True to his statement, the company has joined various frontiers and partnerships that aim at bringing blockchain to the supply chain and logistics industries.
FedEx is a member of Blockchain in Transport Alliance.
FedEx and Hyperledger
FedEx’s first move towards adopting blockchain technology was joining Blockchain in Transport Alliance in early 2018.
FedEx is among the founding members of BiTa and also the BiTA standard board as it seeks to partner with other players in this industry. BiTA aims at developing common standards through the blockchain technology for all the players in the transport industry.
FedEx is already a member of an open-source platform that seeks to improve cross-industries’ blockchain technologies. Hyperledger is hosted by Linux and gives companies like FedEx a platform where they can create blockchain applications and systems for their businesses. Hyperledger will provide all the information that different players need while goods are on transit.
FedEx partnership with Good Shepherd Pharmacy
One of its department, the FedEx Institute of Technology partnered with Good Shepherd Pharmacy to provide solutions to underserved cancer patients.
The Good Shepherd Pharmacy intends to trace and retrieve the unused cancer medications and then redistribute them to the unprivileged patients in different parts of the world. The partnership will make it possible for cancer patients who are poor to afford the medications.
Both parties agree that the use of blockchain technology will ensure that medical history sharing is done confidentially and also cannot be manipulated.
How FedEx is applying blockchain technology
The company has observed that it takes time to come to a consensus when there are disputes. Firms does not have all the information at its disposal which makes it hard to make decisions. The company notes that customers on the blockchain platform can speak in one language which makes it easy to resolve disputes. The blockchain will have all the data that the logistics management company needs to fix the conflicts and speed up delivery.
Enhance security of its transactions
In 2016, its TNT Express branch in Europe was attacked by a high profile cyber-attack which has made the company work so hard to enhance the security of its systems.
The impermeability nature of the blockchain platforms makes it the perfect system to avoid such attacks in the future.
FedEx is still investing and learning how to unlock new possibilities in the blockchain platform. We expect more collaborations and other applications to be rolled out in the future.