One of China’s largest retailers, JD.com, has announced they will be joining the Blockchain in Transport Alliance. The purpose of the alliance is to allow for a more efficient supply chain system through the utilization of blockchain technology. They aim to share knowledge on the subject of blockchain and collaborate to develop a solution on how to use it with logistics. The members of this group already include companies such as FedEx, Penske and UPS among others.
The addition of JD.com gives the group their first Chinese member. This is a big development due to the negative sentiment the government gave towards blockchain backed cryptocurrencies at the end of last year.
JD Logistics, the supply chain arm of the company, has expressed excitement about the possible doors this organization can open. They are hoping to implement the technology in their supply chain to support cross-border logistics and communication.
It has been a growing idea that blockchain technology has potential to make the supply chain and logistics process more efficient. Major logistic companies have joined the coalition including FedEx who announced just one day before JD.com.
Others outside this alliance have started to investigate how to utilize blockchain in complement with logistics. The partnership between startups NTT Data Corp and Skuchain are looking into possible ways to combine blockchain and the Internet of Things to solve recurring supply chain issues.
Companies are quickly seeking partnerships with each other whether they are startups or well established. The first to find a successful use of blockchain could become wildly successful through other companies also wanting to implement the technology. The possibility for lower costs and higher efficiency will cut costs in the long run making it a very attractive investment for many.