The company looks to use the blockchain ledger system to keep track of global shipments worth tens of billion of dollars a year and hopes to cut shipping costs by 20 percent.
“It will have an enormous impact on the supply chains of manufacturing industries,” Song Kwang-woo, the blockchain chief at Samsung SDS Co., the group’s logistical and information and technology arm.
“Blockchain is a core platform to fuel our digital transformation,” he said.
SDS expects to handle 488,000 tons of air cargo and 1 million 20-foot-equivalent (TEU) shipping units this year. That would include organic light-emitting diode displays and Galaxy S9 phones made by Samsung Electronics.
Cheong Tae-su, Professor of Industrial Engineering at Korea University in Seoul considers that a blockchain system may help the company reduce the time lag between product launches and actual shipments.
Samsung Group is one of the first global manufacturers to take a serious look at using the distributed ledgers in its operations.
By Siranush Ghazanchyan