Samsung Electronics Co Ltd (KRX:005930) is planning to use the blockchain platform for tracking down its global supply network. According to reports, the electronics giant has already come up with a distributed ledger system for tracking its international shipments.

With the implementation of this change, the company would be able to cut down its shipping cost by around 20%. The use of blockchain technology will also ensure that the overheads are reduced such as the costly shipping documentation enabling the company to respond more promptly and efficiently to the demand of its consumers.

The platform is being developed by the logistics and IT subsidiary group of the company- Samsung SDS. According to the blockchain lead and vice-president at SDS, Song Kwang-woo this new development will make a major impact on the supply chains of industries that are into manufacturing. He said that the use of blockchain platform will serve as the primary move for fuelling the digital transformation of Samsung.

SDS already has shown its ability to implement blockchain technology especially for the logistics and shipping industry and recently concluded a pilot project of seven months that was created to track the huge exports and import records of the massive shipping industry of Korea. The project was initiated in December last year.

Leading Companies Turning To Blockchain Network

Reports indicate that the subsidiary of the biggest chipmaker and smartphone manufacturer in the world will be shipping goods worth tens of billions of dollars in 2018 which will include 500,000 tons of air freight and 1 million shipping containers. Apart from Samsung, other big companies such as Air France, NTT Data, and IBM are all trying to make their networks more efficient and transparent by bringing in blockchain network in their working.

Last month Sinochem made use of the blockchain platform for tracking down it’s gasoline shipment that was going to Singapore. The Chinese petrochemical giant used this technology successfully for the first time. Many other companies have already started planning to introduce blockchain technology in their working to reduce operative costs and use it for performing multiple tasks including cross-border payments to tracking down its product’s lifecycle in the supermarket.