White paper: Building the Blockchain Logistics Protocol
2.1 Value For Our Clients
Blockchain is inherently suited to many of the key issues facing supply chains. It enables secure, end-to-end supply chain tracking and monitoring from raw material to customer. The primary issues facing shippers with large supply chains, and the solutions presented by OpenPort and our blockchain technology, are focused on the following three core benefits:
1. Security and trust
Irrefutable, immutable and auditable ePOD and provenance answers the question “exactly what got delivered, when, and how”?
- The use of a validated, consensus-driven and immutable public ledger with the ability to encrypt sensitive data for shipment tracking and event reporting reinforces the credibility of our ‘breadcrumbs’ technology.
- Smart contracts on Ethereum mated to OpenPort’s ePOD process ensures the validity and provenance of digitized shipment documents. This introduces efficiencies to the whole supply chain by reducing paperwork required in document transmission, change of ownership procedures and customs clearances.
2. Faster and cheaper
Improved cash flow allows for better rates and real-time visibility, in that:
- Payments and clearance processes are facilitated because supplier terms, letter of credit, trade finance and ePOD triggered payments are all contained in smart contracts.
- Cash flow is vastly increased via a digital currency off-ramp as the immutable ePOD triggers payments from retailer to shipper and shipper to transporter, improving working capital. The result to the shipper is better rates and service, while the transporter receives faster payment and increased volumes.
Blockchain technology extends across borders and modes of transport, thus establishing OpenPort as a supply chain partner of choice for multinationals. OpenPort’s technology is already localized and supporting shippers and transporters in India, Pakistan, Indonesia, Philippines, China and Hong Kong as the only multimarket digital logistics providers in Asia. Further, a road freight solution is already scaling to support the “first mile” of international shipments for US retail brands sourcing from China and India – We can start where a customer needs us most, and scale across markets and mode of services with a common standard of business process and system integration which leverages for improved value delivery to the world’s largest supply chains.
Direct economic incentives
OpenPort will use the OPN (OpenPort token) (discussed in section 2.2 below) and blockchain processes supporting our platform to create two primary incentives to drive activity from offline traditional means of transportation sourcing over to our unique multi-market enterprise platform:
- Transporters must utilize OpenPort technology to receive payment, which improves their cash flow to support asset operating costs and, at the same time, drives value to other supply chain stakeholders especially the shipper of the goods, by improving visibility and providing real-time ePOD.
- Meanwhile, enterprise shippers procuring logistics receive savings in improved transport rates made available by transporters, on the basis of low payment risk and improved settlement of freight rates, (plus discounts on transport offered initially by OpenPort).