Supply chain logistics today is faced with a challenge. The immense amount of paperwork involved, even in the digital age is hindering its efficiency. The burden of manual record keeping and filing results in inaccuracies of data and the intentional abuse of power to alter documents, leading to a non-transparent position.
The resulting lack of security and trust creates an atmosphere of ambiguity, leading to disruptions in cash flows as documents are verified, re-verified and payment disputes erupt. This affects the shippers and transporters globally.
Current Issues In The Global Supply Chain
The OEL Foundation is a company that is geared towards removing these hurdles and burdens in order to smoothen out the global logistics industry. In their quest for a system that is efficient, cheap and reliable, they have turned toward the decentralized blockchain technology.
With a 13% share in the global GDP, logistics and transport create a substantial level of funds annually. According to a 2016 report by Transparency Market Research group, transfer of retail ownership of goods will reach an astounding USD 15.5 trillion value by 2021.
According to its own research, the Open Enterprise Logistics (OEL) estimates road freight spending in Asia alone was over $143 billion alone in 2016. This moved a whopping USD 6 trillion worth of goods. The significant amount of spending on road transport is due to the huge land mass of the continent and the variety of industries set in different locations and countries, where raw material delivery and finished goods export is only possible through a complex, interconnected and cheap road network.
In emerging markets, the transparency of transport and on time delivery with complete trading materials and payments is a major issue that plagues the market right now. The lack of security and control on the supply chain, especially in the developing and emerging markets can drive up the costs of goods (due to penalties, loss of clientage, theft, product damage, etc.)
OEL Foundation: The Blockchain Solution
OEL Foundation is a platform that is turning towards the blockchain technology to provide the global supply chain industry with a solution that is cheap, safer and efficient. With the adaption of the distributed ledger technology, OEL Foundation will help to empower the transport industry by helping it move from the de facto standard of paper-based documentation to the digital age, providing the industry and immutable and dispute free record of freight’s history for its complete life.
The OEL Foundation intends to solve these problems by:
- Termination of reliance on middlemen and intermediaries by using peer 2 peer blockchain technology, by allowing direct communication for Letter of Credit, Bills of Lading, receipts and orders.
- Efficiency and Cost saving through immutable, transparent and a completely auditable ledger that is open for the public.
- Transfer of documents and money automatically and instantly through use of smart contracts.
- Reduced reliance on brokers and clearing houses.
Apart from the financial aspect of adoption of the blockchain technology, the platform intends to connect the system along with Internet of Things (IoT) devices to continually monitor goods, vehicles and the men and women involved in the supply chain business. These monitoring include the temperature of sensitive goods, weather patterns, vehicle performances, the weight of goods, pallet and goods tracking, driver monitoring etc. These monitoring will be analyzed to establish patterns and behaviors in logistics to determine any and all kind of corrective and preemptive actions required for a smooth transport of goods all across the globe.
OEL Foundation Alliance
The adoption of a publicly distributed ledger technology such as blockchain is only possible if all members of the sector are on board and willing to work together as a cohesive force in order to gain maximum potential output of the promises offered by the technology and the OEL Foundation. In this regard, the platform has created a group of members which will include all stakeholders in the logistics industry. This will include multinational brands, freight forwarders, transporters, third-party logistics companies, retailers and much more.
The OEL Foundation has established three levels of members, each with their own specific access levels within the organization:
- General Members: complete access to the daily workings and information stored on the blockchain, including readymade applications for suitable for their workings.
- Premium Members: Early access to applications, beta releases, SDKs and a quarterly interaction with the development team.
- Enterprise Council Members: Having a say in the direction of all developments, including participation in articles, studies and contents released by the Foundation. Full access to all technologies.
The platform, like all blockchain powered platforms, will have its own internal token for asset and money management. The ERC 20 standard token will have its first round of ICO in Q3, 2018, followed by the second phase in Q2/3 2019. The token will be sold in these rounds at a rate of $0.5 per OPN, with a softcap of $4 million and a hardcap of $15 million. Standard regulations regarding KYC applies.
For more information, visit the OEL Foundation website: https://oel.foundation/