Electronics manufacturing giant Samsung (TIKER: SMSN.LSEIOB) is looking to blockchain to manage its vast global supply network, Bloomberg reports.
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