FedEx workers comment that although this technology improves they processes, it is still too young for its definitive adoption
In a recent report published by the Commercial Appeal news agency, an executive of the multinational company of shipments and parcels, FedEx, said that at the moment it is not entirely convinced in the implementation of blockchain technology in the company. Some representatives expressed that other shipping companies should ally to sustain the use of this technology.
During a recent interview, Dale Chrystie, Executive in charge of the implementation of the technology in the company, commented that blockchain does not have a machine capable of selling the product for its implementation and that it is adrift only for someone who has to invest in discovering it and not in acquiring it. This, according to Chrystie, represents expenses and time that not every company is willing to accept for a technology that has yet to be developed. The executive says: “To exploit the bubble, it is not our only database, it is not our best database, currently it is not very fast or very scalable and it is not very mature, right?”.
After the statements of Chrystie, FedEx Information Director, Rob Carter, said that point of view is completely true and supports his words remembering that, last April, he assured that in order to take advantage of all the potential offered by blockchain, tests and meetings to reach a consensus with his colleagues on how the process should be started, should be conducted. However, he affirmed that this technology has great potential for the company. “This technology is still in its infancy, but it has immense potential to transform cross-border trade by reducing friction and increasing integrity in the way things move around the world”.
The Use of Blockchain in FedEx
With respect to the function of blockchain technology in the company, Chrystie assures that it could revolutionize the industry, especially in the logistics processes, if an important consensus is reached with all the supply chains. This happens since all the parties do not seem to be very close to ensure their optimal functioning.
Despite these disadvantages, executives argue that the use of blockchain technology in the shipping and delivery service has proved to be a great help. One example is that FedEx has improved the accuracy and authenticity of item shipments, even though a number of channels are needed for the process. Blockchain also shows the correct shipment, showing the channels used for the trajectory. This allows tracing the places where the article has been. Even with all these benefits, executives say blockchain is not of great value if it is not implemented on a large scale, because the platform would lose coherence and meaning in the investment. “Yes, everyone wants to monetize this technology, but we will all have to work together to build it. That’s why I refer to blockchain as a team sport. Once it is built, many people will be able to find a business model for it. At this time, it is not built”.
In this regard, the important US shipping company FedEx is also looking for discovering an innovative leadership that is precisely adapting to the technological development of technology. For this reason, the company indicates important alliances with other shipping companies such as UPS, Google and Target to form a team that helps improve their processes using these new technologies.
By María Rodríguez