It is often noticed that enterprise logistics in the supply chain are loaded with unreliable and large manual paper-based procedures. This results in a lack of transparency and non-appearance of secure and trusted information which leads to delays in cash flows and disputes regarding payments. Due to this, the shippers and transporters are affected globally.
Maintaining liquidity becomes very difficult in the transport industry. For the betterment of this situation, Open Enterprise Logistics (OEL) Foundation has introduced its ICO project. This project aims at eliminating the load present on the supply chain by adopting a shared, common and an open source enterprise infrastructure which utilizes blockchain technology.
OEL wants to empower the transport industry by taking off paper-based and non-ledger digital records and storing them on the blockchain. Through blockchain’s distributed ledger system, any shipment-related data becomes unchangeable, creating an indisputable record of transport’s history which is linked to a digital agreement. The Foundation is helping the development of a decentralized architecture to beat the challenges regarding transport management.
The OEL Foundation Alliance comprises of stakeholders in the supply chain industry, transport forwarders, multinational brand owners and manufacturers, transporters and retailers. All the active members of this Alliance will work together with the OEL Enterprise Architecture to form the OEL blockchain ecosystem. The members are responsible for implementation and development of blockchain application in order to make it actionable for stakeholders.
The Foundation contracted OpenPort, which is a commercial entity that provides development and administrative support, for the OEL ecosystem. OpenPort and OEL are operating on a private blockchain network. OEL will be seen leveraging OpenPort’s experience, client base and the knowledge gained in order to build and design the OEL Enterprise Architecture.
The OEL Foundation acts as the governing body to ensure the transparency, trust and accountability. OEL will handle the protocol and platform which will be available to third parties under a GPL license.
With blockchain, third party members can be eliminated. Transmitting orders, creating letters and bills of credits and delivery receipts can be done without needing bonded messengers. Gaining such kind of independence from third parties proves to be cost-efficient since enterprises will not have to spend on them.
The features of this project can drive the market efficiency along with maintaining a great transparency of transaction data. It also provides an auditable public ledger system that records all kinds of events and documents. Micro-rewards and smart contracts which are powered by tokens can also be triggered.
This ICO project will improve the demand and supply relationship while reducing the reliance on clearing houses and brokers. The token can be used to directly connect to the suppliers with a greater speed and efficiency.
The OEL has definitely utilized the power of blockchain to come up with this great project. The OEL architecture seems to be very interesting since it provides a framework which helps understand the enterprise environment and the components that consist of service and product offerings.
Since this project uses blockchain, which has gained the trust of many people, we can expect many enterprises, manufacturers and stakeholders to shift to OEL’s project.
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