JD Logistics Join Blockchain in Transport Alliance
January 31, Beijing – JD Logistics officially joined Blockchain in Transport Alliance (BiTA). The move is to bring China’s experience in logistics industry and blockchain technology achievements together with global giants, and continue to optimize supply chain process as well as promote cross-border logistics cooperation and development via blockchain technology in the future.
JD Logistics, the logistics arm of China’s second-largest e-commerce player JD.com, Inc. (NASDAQ:JD). It was said to have achieved an annual revenue of 30 billion yuan ($4.5 billion) and look set to scale it up to 100 billion yuan in the next five years. Applying drones for delivery and unmanned warehouse, its efficiency is enhanced by 10 times and costs cut a lot. Seeing the potential blockchain benefits, JD Logistics is the first to join BiTA ahead of many logistics corporate in China, eyeing bigger in an international stage.
What is BiTA?
Founded in Aug 2017, BiTA was formed by experienced tech and transportation executives dedicated to setting standards for blockchain technology applications developed for transportation and freight industry, with the aim of promoting and educating the transportation industry on the use and development of blockchain applications. Over 200+ companies have applied for membership, including UPS, FedEx, PENSKE, C.H.Robinson and SAP.
Realize whole-process traceability via blockchain technology
As early as July 2017, JD Logistics has been experimenting with blockchain technology and set up the Cross-border Traceability Alliance with China Entry-Exit Inspection and Quarantine Association and 20 world-famous brands such as Wal-Mart, Huggies, Danone, Sasa, Rakuten and eBay, as well as international logistics companies like K&N and Agility. Based on the technology of blockchain and big data, supported by global brands and retailers as well as international logistics providers, the cross-border logistics service network was formed integrating services of delivery, transportation, warehousing, customs clearance and distribution, getting through the information of bonded stocking and cross-border direct delivery for cross-border e-commerce.
Improve safety and visualization in freight circulation with distributed ledger
As a new rising industry, international logistics is attracting more and more attention. Facing the complex of cross-border logistics and international supply chain, the application of blockchain facilitates to bring players in the industry chain together, and improve the safety and visualization in freight circulation with distributed ledger. When the whole process of logistics involves several subjects, blockchain’s advantage of decentralization and trustless could be brought into full play as a solution to the high risk in security during the information transmission and high costs for trust.
It is foreseeable that blockchain technology will play an indispensable role in the intelligent logistics network in the future. And how to integrate the blockchain technology into the application of more logistics industry, JD Logistics will share its experience and the existing achievements with its international counterparts.
The blockchain has become a must-talk in the capital market. While consensus is reached that the blockchain technology is still under research and promotion, and it is difficult to form a substantial business in the short term. But as a supporting technology it is helpful in many industries including application in food supply chain for food tracking and traceability, and now the logistics sector. With the support of blockchain technology, where your goods purchased from oversea have been could be clearly seen and farewell to the long waiting.