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Discussion Question B: Transportation

The transport industry has changed significantly in the last two decades, creating new ways of doing business. The main reason why logistics has changed is that high market competition has necessitated cost-cutting measures. Companies that are not effective in lowering their operations costs are likely to be driven out of business by large multinational companies. One of such current and future trends in the transport sector is the application of Blockchain technology. Blockchain, in simple terms, can be defined as an electronic spreadsheet made of several interconnections of computer systems that gathers data to provide a real-time overview of transactions and other operations.

First of all, this innovation will play the role of streamlining operations in the supply chain. The supply chain requires a high level of accuracy and timeliness. Blockchain will eliminate errors that may arise during record entry, shipment volumes, as well as errors that may occur during material packaging. Furthermore, Blockchain will ensure effective payment, mostly for the global supply chain. In most nations, the supply chain has become a field rife with corruption due to collusion between procurement officers and contractors. To eliminate this inefficiency, Blockchain facilitates payments and audit trails.

It is with no doubt adopting information technology in whichever sector is costly. Blockchain is among the most expensive technology of the current and future organizational operations. The reasons why Blockchain is costly to acquire and implement are that staff need to be trained, and the existing firm infrastructure needs to be changed and aligned with new requirements. However, in long runs, cost incurred has the potential to gain benefits since Blockchain can be used for cross-functional applications (can be used for many purposes in a firm) and two, it has potential on lowering operation cost by eliminating redundant workforce.

So far, the Transport of Canada does not instill any prohibitive regulation regarding the application Blockchain. However, the most applicable law relates to data security and privacy during the interchange of information through Blockchain platforms.

Data security and privacy may affect the application of Blockchain by requiring companies not of 'fish' for information from potential customers as well from...