FedEx Giving Serious Thought to Blockchain Use
Package delivery giant FedEx might implement blockchain technology as part of its IT innovation strategy. The company recently became part of the Blockchain in Transportation Alliance.
FedEx Corporation is looking to implement innovative technologies like autonomous vehicles and blockchain, according to chief information officer Robert Carter. Speaking about the IT upgrade during the company’s second-quarter earnings call, he said:
“We definitely believe that blockchain represents a significant opportunity in the custodial control and chain of control for supply chain shipments. We were, and are, charter members in the Blockchain in Transportation Alliance as well as the Blockchain Research Institute. We believe that going forward, the overall prominence of goods as they move around the world and the enhancement Blockchain offers to global settlement systems and payment systems, offer a significant opportunity for us.”
FedEx is also looking to use autonomous vehicles. Carter anticipates that the company will soon start implementing a series of technological innovations, such as adaptive cruise control, automatic braking, and lane departure. These technologies can increase safety for drivers and automate processes.
Formerly known as Federal Express, the US multinational offers courier delivery services. It is the parent company of TNT Express – a European-based sector player that fell victim to a high-profile cyber-attack this summer.
FedEx has been through a long recovery process after the cyber-attack, and this might increase its interest in the blockchain - a technology that guarantees the security and transparency of transactions and operations.
The Blockchain in Transporation Alliance (BiTA) is an organization made up of executives operating in the technology and transportation sectors. BiTA aims to standardize blockchain principles and approaches in the freight industry.
Currently, BiTA comprises over 40 companies, including UPS, P&S Transportation, US Express, SAP, GlobalTranz, Strive Logistics, Bridgestone, and Sheer. The primary goals of the alliance are developing a set of blockchain-based standards for future applications within the industry; promoting blockchain technology in the logistics field; and creating a platform for discussion and collaboration between logistics companies.
BiTA considers blockchain a disruptive technology that may transform the trucking and logistics industry the same as the internet has done. The association acts as a leading blockchain representative in its sector and intends to unify reputable companies under a structured system.