Maersk, a reputed Danish firm in the shipping business, and IBM, a technology firm headquartered in the U.S., have joined hands for effectively using blockchain technology across global trade operations. It is projected that both the firms are trying to make use of the shared ledger technology to improve the functions of the supply chain. The joint venture is predicted to help other firms improve the efficiency and safety of their supply chain operations as well.
As per sources, firms such as Procter & Gamble and General Motors have demonstrated an interest in the new technology with an aim to exploit the same for augmenting their trading & digitizing supply chain activities across the globe.
Key officials of both IBM and Maersk have asserted that shipping firms incur nearly one-fifth of the transportation costs on document processing and administration. They further claim that the adoption of the blockchain technology can assist these organizations to reduce the costs and bring about an improvement in processing efficiency. In 2013, World Economic Forum had reported that reducing the paperwork transactions and documentation mess in the international trade can result in nearly 5% rise in GDP and an increase in the trading activities by 15%, thereby contributing to millions of dollars in the form of revenue and saving currency.
Technology experts have stated that the blockchain technology has the ability to provide a single view of all the deals taking place between many firms. It has also been claimed that the new technology will assist in proper and effective resource allocation and utilization. The new CEO of the IBM-Maersk joint venture is of the view that the combined unit will receive the nod of approval from the U.S. regulatory authorities somewhere in the spring.
For the record, the newly established firm will commence the software subscription sale in the third quarter of 2018.