Dutch company Koopman Logistics has become one of the first transportation companies to make use of IBM blockchain technology.
Logistics is yet another industry that is seeing the benefits that blockchain technology can provide, and Koopman is proving to be a shining example of that.
Accuracy of information
With over 1,000 people employed by the company in terminals throughout the Netherlands, Belgium, and Germany and a fleet of over 500 vehicle transporters, Koopman is one of the leading providers in the finished vehicle logistics market in Europe.
IBM blockchain technology was used in a vehicle delivery trial in April which involved the automating of administrative functions to provide precise “real-time” tracking information for each unit.
Commenting at the conclusion of the trial in April, CEO Jon Kuiper said that the IBM blockchain technology allowed the company to provide accurate information as to the location of each vehicle and their status during each point of the delivery process.
The technology was also used in the delivery process, including proof of delivery and electronic consignment documentation.
CEO Jon Kuiper believes that the IBM blockchain technology could save the industry around EURO 775 million on an annual basis –
“A significant number of FTEs are currently tied up in cumbersome invoicing and payment processes, and delayed payments have a negative impact on cash flow.”
“By digitizing processes and creating trusted records that are shared between all partners, our solution will accelerate the cash-conversion cycle and cut out huge amounts of waste. What’s more, the availability of accurate, real-time information on vehicles will make it possible to hold partners accountable for damage. One customer has told us that he loses €2 million a year in damage to cars during the handover process– our solution could eliminate this.”
Permissioned blockchain promotes trust
When asked what prompted him to look at the IBM blockchain technology as a solution, Kuiper said commented that “our technical and business analyses both pointed to IBM as the best partner for Koopman.”
“On the technical level, we wanted to use Hyperledger Fabric because a permissioned blockchain is best in a scenario where each party needs to know and trust the other companies they are doing business with. Another factor for a permissioned blockchain is that this supply chain involves billions of Euros of assets passing through the hands of multiple different partners.”
There are already suggestions that the technology could be used in the future to store legal and financial information.
Being able to store customs documentation, VAT records, legal proof of ownership, and tamper-proof odometer readings would go a long way toward increasing customer confidence in the second-hand car industry.
Mileage and VAT fraud is estimated to cost the EU around EURO 10 billion annually, and blockchain technology could significantly reduce that cost.
Lover of all things crypto, blockchain and AI, professional tech scribe & part of the editorial team at Crypto Disrupt.