Daily Management Review

The brewing industry welcomes blockchain


03/29/2018


You probably heard that the blockchain technology has become the main growth driver for cryptocurrency such as Bitcoin. And the company Anheuser-Busch InBev turned the blockchain into something, which is easy to understand: beer.



Dorisall
Dorisall
Technically, the brewing giant does not use the digital distributed register in production itself, but applies it to make logistics more efficient and cheaper. Anheuser-Busch's work proves that blockchain allows simplifying the cumbersome delivery process and saving hundreds of millions of dollars. 

What is blockchain anyway?

Briefly, blockchain is a distributed cryptographic registry used to ensure that the record has not been changed." This technology is considered revolutionary, because information in blockchain cannot be changed by cybercriminals. In addition, due to the absence of intermediaries, transaction fees are generally lower and transactions can be processed more quickly. However, blockchain is more than just the basis of an unusual payment system. This technology is used by companies and industries that are far from the crypto-currency market. IBM is one of the leading suppliers of blockchain-based business solutions in the field of supply chains, food safety, etc. Amazon offers blockchain-based solutions for its Web services. Apple is trying to integrate the blockchain system into secure timestamp technology. Now Anheuser-Busch applies it in shipping and logistics.  

Blockchain and export 

Along with the consortium of enterprises, which includes the international consulting firm Accenture, the APL shipping line, Kuehne + Nagel transport and logistics company and an unnamed European customs organization, Anheuser-Busch has already internationally delivered 12 batches of beer that were collected in different locations and the supply of which required to overcome various regulatory barriers. The consortium members noted that the international transport of goods usually require more than 20 different documents, allowing the transfer of goods from the exporter to the importer. This ultimately reduces the quality of the data and does not allow the supply participants to see the progress of the entire process. The consortium members say that the decision on using the blockchain technology was a huge success, because it eliminated the need for printing documents and about 80% of the data entry requirements. According to their estimates, speeding up and simplifying the work with documents would allow logistic and transport companies to save hundreds of millions of dollars a year.

The US Department of Commerce reports that customs clearance and compliance with all necessary procedures for the import of goods usually takes an average of 10 hours and costs $ 275 for the company. Export of goods requires an average of 4 hours and $ 235. In other countries where the regulatory environment is not so friendly to the business, the costs can be much higher, and the required time may reach up to several days or weeks. Exports of goods from Eastern Europe and Central Asia can take 55 hours and cost more than $ 300. For the Middle East and North Africa, these figures can be up to 142 hours and more than $ 700. 

Of course, export clearance can cost $ 186 in some economically developed countries with high incomes, but it still takes 15 hours. It makes sense for international freight carriers to use blockchain, as this technology allows creating unchanged reports on international deliveries. The reasons for the delay can be traced back to their source, and pricing can be built into future contracts and procurement processes. The shipping giant Maersk is already moving in this direction, creating a joint venture with IBM, whose task is to use blockchain to track every transaction involving millions of sea containers that the company sends around the world every year. Now Anheuser-Busch InBev starts applying this technology for deliveries of almost 500 million hectoliters of beer produced annually. Blockchain is unlikely to improve its taste, but it can become a source of significant savings for the company. 

source: fool.com






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