Sumary
Indastry: Logistics
BeFund`s service: Smart contracts
BeFund`s team: 1 project managers, 3 developers
Technologies: Solidity, Phyton
Terms: 5 month
Cost: >$200K
About the client
Unfortunately, under the terms of the non-disclosure agreement (NDA), we cannot disclose the name of the client company and specific features of the project. However, by mutual agreement, we are able to publicize the general provisions of the project and some key solutions. In the case of your cooperation with BeFund, all issues regarding the publicity of information will be discussed individually.
What`s the problem?
About situation:
Supplies are the basis of any business that depends on the performance of other enterprises. Parts for various machines and aggregates, electronics for the high-tech world, fabric and accessories for the garment industry or seeds and fertilizers for farmers — all of this must arrive from point A to point B on time. According to the calculations of the logistics company, customer of BeFund, every year their customers spend millions of dollars just to pay for various deliveries. Much of the money is spent on product tracking and communication, which adds value to the final service check. Another big problem is unstable connections between suppliers and receivers: often, potential partners simply cannot find each other in time, which reduces the number of concluded deals. After a detailed analysis, our customers set a goal to improve the working scheme due to the introduction of blockchain. This should contribute to:
The goals of project:
- Reducing costs for tracking parcels and other cargo;
- Clear and reliable data exchange between all process participants;
- A mechanism for concluding reliable and transparent agreements;
- Creation of permanent connections between suppliers and recipients of goods;
- Increasing the level of security and countering attackers who are interested in confidential information about shipments and their participants.
Solution by BeFund
The basis for solving most of the problems of BeFund customers was the development of smart contracts using the Ethereum blockchain. Unlike any other contracts, without which logistics is impossible in general, it is smart contracts that can simplify the process many times and make it the most efficient. A tripartite smart contract includes the interests of all process participants at once:
- The supplier who provides the product guarantees its quality;
- The recipient who undertakes monetary obligations (advance payment, payment in installments or post-payment).
A carrier that guarantees delivery at the agreed time and to the right place.
Since smart contracts are publicly available, the trust issue of all participants in the agreement is immediately resolved. Storing data in the blockchain guarantees their authenticity and the ability to check the obligations or responsibilities of each party at any time.
The data of each shipment from the smart contract makes it easier to track the movement of cargo. Already at the testing stage, it became clear that tracking costs were reduced by an average of 40%, and the quality of monitoring improved several times. Movement data is also entered into the blockchain, so it is now easy to track the movement of even each individual parcel. One of the side tasks was the inclusion of indicators from automated goods weighing devices into the general process. The administrative part of the created software, created in Python, provides a module for interaction with the hardware part and can receive data from scales at the customer’s logistics terminals. This allows you to compare the weight of parcels and plan the filling of vehicles for more efficient transportation between infrastructure units.
Another positive point was the improvement of analytics and interaction between all participants in the process. During the analysis of the processes, points of logistics became obvious, which can be simplified without significant impact on the result. Therefore, the main achievements of the project were:
