Tag Archives: technology

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Blockchain not yet for supply chains

Gartner says 80% of blockchain supply chain developments won’t get out of design and development for several years.  So many of them are just recycling financial blockchain ideas into supply chain space without understanding the issues.  A case of a solution chasing a problem, the bugaboo of ITY initiatives forever.

I’d like to get my hands on this report from Gartner.  It should be interesting.

The Gartner source below says 90%!!! I like that number better as an estimate.

Here’s a quote from the latter press release from Gartner:

“The budding nature of blockchain makes it almost impossible for organizations to identify and target specific high-value use cases. Instead, companies are forced to run multiple development pilots using trial and error to find ones that might provide value.  …

Furthermore, current creations offered by solution providers are complicated hybrids of conventional blockchain technologies.”

Exactly.

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 via Blockchain may be the way ahead for supply chains – but not yet – The Loadstar

Another source: https://www.gartner.com/en/newsroom/press-releases/2019-05-07-gartner-predicts-90–of-blockchain-based-supply-chain

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DCSA unveils new era of smarter supply chains with track & trace standards

The Digital Container Shipping Association has unveiled its new T&T standard for tracking containers while en route between shipper and consignee.  They are quite detailed and have been planned using some of the latest design thinking techniques, including the definition of personas who might use the system one way or another. They’ve prepared some very nice slide shows to describe at a high level what they are doing.

DCSA was launched by MSC, Maersk, Hapag-Lloyd and ONE last April, with CMA CGM, Yang Ming, Evergreen, HMM and Zim joining a month later. This is a fairly quick turnaround for a first standard delivery.

The catch will be how fast people start sticking to them when building equipment and systems. Doing so can be predicted to help sales, via a network effect– since the standards make systems compatible, there’s less hassle making one system relate to another.  A close review should be done of the standards, to see how many choices individual participants are given to make the information specific to their needs.  Such choices tend to produce systems that lose their compatibility if one of the partners changes, and make specific programming necessary when others try to adapt to the system. It’s the anthesis of cooperation.  And these standards are meant to promote cooperation rather than competition.

An example of the issue can be seen with EDI, in which general record structures are defined, but a lot of latitude is given to provide extra information or different information. The result is that EDI needs to be specially programmed for each pair-wise interaction of companies, a problem that has haunted us for 20 years even though
EDI, in general, was a big step forward.

Let’s hope that we all have learned from the past, and can use the standard to really lubricate information flow in supply chains.

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By via New era of smarter supply chains as DCSA track & trace standards are unveiled – The Loadstar
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Maersk invest in ZigZag Returns

It’s clear that Maersk is making bets as a venture capitalist on young firms with unique value propositions. They have made an investment, via Maersk Growth, in ZigZag, a London-based firm.

I had never heard of ZigZag before.  They offer a SaaS (Software as a service) that allows manufacturers and retailers to manage returns in a one-stop manner.  Their services include hard logistics assets like access to warehouses and sortation centers and access to carriers, as well as just the software.

The story indicates some of what they do.  We all know that returns are a unique type of operation, whose nature differs with the type of industry.  HP has been doing it for many years in the printer division.  But I was interested to find out that there is a lot of interest among clothing manufacturers or retailers.

Apparently people buy clothes, use them for a while, and then return them, even for no refund.  There is also a temptation for retailers to get rid of stale inventory by simply throwing it in a landfill, a sustainability issue.  Easy returns offers an opportunity for a firm that can handle these problems efficiently and in a sustainable manner. (I presume there might be an incentive to cheat; but certainly a specialist could do a better job because it’s their core business).

I doubt that ZigZag will be merged with Maersk.  However, the bet makes sense when you understand that a lot of what Maersk carries is clothing manufactures from the Far East.  If ZigZag can help these clients it could make a difference in the clients’ bottom line, and Maersk would be able to say they helped with the supply chain problems.

Reach ZigZag here: https://www.zigzag.global/

screenshot-Zigzag 2019-11-06

via Maersk invest in ZigZag Returns – Press Release