FedEx: blockchain is logistics ‘next frontier’
Delivery giant FedEx thinks it might have found the next big thing when it comes to package deliveries: blockchain. The technology uses computer code to create a permanent digital record of every step in a transaction. This provides unparalleled transparency, and has the potential to neutralize many common disagreements: the only way to change the ledger is if every party agrees. Awareness of this fact going in to a transaction is akin to agreeing with it, so it places the burden of proof squarely on a single party.
FedEx’s share price has risen by 29% over the past 12 months
SOURCE: Yahoo Finance
Fred Smith, FedEx’s chief executive, attended a blockchain conference in New York last week, when he said: “We’re quite confident that it has big, big implications in supply chain, transportation and logistics. It’s the next frontier that’s going to completely change worldwide supply chains.”
According to Smith, blockchain plays a role in the company’s wider focus on innovation and technology. He also talks about the Internet of Things, drone flights, a “Bluetooth-based, low energy tracking sensor called Tron,” and related wonders of the modern world. The reason is simple: FedEx is working hard to improve customer service and “fend off competition”, Smith says.
What’s the risk in ignoring these technologies? “Probably, at some point, extinction,” Smith says.
Dominion holds FedEx in its Global Trends Ecommerce Fund.
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