Integrated Business Processes With Erp Systems Test Bank
Posted By Admin @ Mar 02, 2022
Posted By Admin @ Mar 02, 2022
Tittle: Report on Block Chain Technology in Saudi Logistics
Block Chain Technology
The blockchain could be described as the distribution that is focused as the digital ledger of transactions that can record not just financial transactions, but there is also the virtual analysis for everything of value. The blockchain can be described as the form of "blocks" that are batched or focused so that there could be an analysis of the latest transactions (Peters & Panayi, 2016). There are significant benefits of the blockchain as the financial institutions can get the benefits; they are peer-to-peer nature and focus on the lower costs. However, other interests include the reduced processing times; it also improved transparency. Therefore, blockchain should be used.
There are several benefits of using blockchain in the global supply chains. However, there are also benefits to the business models, financial services as well as the healthcare, etc. the interest related to the enhanced security and increased efficiency are also there. Moreover, using blockchain can also increase the speed of transactions and reduced costs of the operations. With the use of blockchain technology company could maintain the subsequent records of the entire network and the sales in this way, can be more accurate, consistent as well as transparent. There is better management of the record-keeping systems and issues are resolved regarding the complex supply chain and human error. The risks that are concerned to the blockchain are data confidentiality risk, regulatory and compliance risk, IT security risks, etc. (Swan, 2015) Complexities could be there in the blockchain technology; as blockchain can include issues related to the fatal flaw and human error. Companies could also face challenges associated with the security flaw. Blockchain protocols can also have side effects related to politics as this technology can digitize governance models, and there could be issues related to the incentivized governance.
Saudi Logistics currently involves a shipping network that is working efficiently; without any data inconsistency, it has reliable data history. However, the blockchain is considered as a reliable way to operate the shipping network in Saudi Logistics. With the global footprint the blockchain technology, Saudi Logistics also considered the effective collaboration of it as there is a focus on the success of the supply chain through building blockchain architecture (Logistics Middle East Staff, 2019).
According to the research conducted by Lindman, Tuunainen, & Rossi (2017) the blockchain technologies can effectively promote the digital platforms and services of the companies. However, there are technical and legal issues with the understanding of blockchain. It is analyzed in the research that blockchain technologies can promote the competitive environment. However, there can be technology design issues or both risks and opportunities both are included. For the technical innovations in digitalization blockchain technologies have given several benefits to the business for the managing contracts (Lindman, Tuunainen, & Rossi, 2017). The use of blockchain technology in Saudi Logistic aims to ensure the system as to enhance the private sector participation and create the regulations that ensure benefit for the Kingdom logistics capabilities.
With the significant focus area in logistics, blockchain features are accurately measured by the Saudi Logistics as in the shipping network there is up to date information regarding the logistics service providers that can be a third party or multiple service providers. However, the information regarding the moving materials is decided in the distributed digital ledge so that there could be a better analysis of the shared digital currencies and logistics operation among different parties. Saudi Logistics through blockchain technology is ensuring the data clean and accurate progress projects for logistics (Logistics Middle East Staff, 2019).
It is accessed from the article that not only in the logistics companies but also universally blockchain concerns are recognized, however, the Global Shipping Business Network (GSBN) has some acceptable blockchain solutions and it also resolves the shipper's issues. Moreover, the documentation issues are also resolved and there is the support to the blockchain shipping pilot to enhance the security of stakeholders (Roychoudhury & Shetty, 2019).