Blockchain is gradually making a name for itself in the world of intralogistics. It is a distributed ledger technology made up of blocks of data bound together forming a chain. Put simply, blockchain is an automated way of transferring information from one point to another. One party creates a block initiating a transaction. The block is then verified by a cluster of computers before it is added to the chain which is stored across the network. Each transaction is time-stamped, and immutable, making the ledger very secure, virtually un-hackable and transparent.

Blockchain effectively provides multiple users simultaneous real-time access to a highly secure database, offering increased efficiency, seamless collaboration and accountability. These benefits apply to the warehouse. For example, blockchain allows the elimination of time-consuming documentation and paper checks within the warehouse. It also allows for the use of self-executing, ‘smart contracts’, for instance when a pallet is delivered, the received confirmation, time of delivery, and condition are transmitted to the chain for verification, and if verified, payments are released to the appropriate parties. In addition, with blockchain, warehouse inventory management systems can more accurately forecast demand and thereby more closely match its stock.

Global giants have already adopted the technology, including Walmart, FedEx, UPS, British Airways, Maersk and Samsung, and according to Ginny Rometty, IBM’s CEO: “What the internet did for communications, Blockchain will do for trusted transactions.”

But there is still an important unanswered question on how to fully realize the potential of blockchain: How do we ensure the value of blockchain, when it relies on multiple actors across the supply chain (including retailers, industry, logistics partners, service providers, etc.) to contribute accurate and timely data to the shared pool? Incomplete, incorrect, or late records impact the integrity and efficiency of the entire system.

The technology is still in its early stages, and though some challenges exist, there is no doubt that blockchain provides the answers to many long prevailing concerns of the supply chain industry and that it will have a lasting impact on the warehouse.