Food Shippers of America - Fall/Winter 2017 - 33

F E A T U R E

Blockchains
for Trucking
by Noël Perry, Chief Economist, Truckstop.com

F

or those of you whose heads are buried in the minutiae of managing carriers or
supply chains, you'd be forgiven for not knowing the newest digital buzzword:
"blockchain." The concept is relatively simple. In their book, Blockchain
Revolution, technology and financial analysts Don and Alex Tapscott describe it

as "an incorruptible digital ledger of economic transactions that can be programmed to record
not just financial transactions, but virtually everything of value."

So how might blockchains apply to
supply chains? Let's start with today's
equivalent of a rudimentary trucking
blockchain. In the past, brokers had
to make individual phone calls to find
out who had capacity to cover the
loads they'd lined up. Determining
the reputability of each carrier was
a tedious process, often guided by
the broker's instinct and experience.
Now brokers simply have to log onto
a load board like Truckstop.com to
find available capacity for thousands
of lanes, covering the whole country,
in addition to a host of other carrier
attributes. So, in this instance, a
blockchain is a single, reputable
source of real-time carrier information
accessible to the entire industry.
Looking ahead, alongside carrier
information, this blockchain
could feasibly contain current and
prospective capacity, by lane, along
with carrier pricing requirements.
Suddenly, a sophisticated supply chain
computer could proactively solve its
supply requirements with as much of
a forward-looking perspective as its
risk profiles could handle. Consider
that supply chains typically perform

their operations independent of carrier
performance, one-dimensionally,
with shipper inputs alone; they spit
out load tenders and thereafter select
the lowest cost trucking option. But,
armed with a comprehensive carrier
blockchain, an enhanced supply chain
optimizer could alter its production to
match the availability of trucks. The
supply chain suddenly becomes much
more two-dimensional, using both
shipper and carrier inputs, with the
resulting savings easily outweighing
constraints on production schedules.
We've witnessed some of this
optimization during the classic "fall

peak" shipping season. Retailers
have steadily reacted to the premium,
seasonal prices by shipping in late
summer and early fall, when rates are
lower. Your favorite retailers are not
stocking their Christmas items October
1st to get early sales; it's simply a
logistics play to save on trucking costs.
Whatever inventory risk retailers acrue
for the early stock is outweighed by
the transportation savings. Take those
crazy lines on Black Friday, caused, in
part, by retailers not making as many
supply runs late November and early
December to guarantee availability.
There are no more trailers parked
outside of Walmart on November
26th filled with featured sales items.
Ultimately, online marketing will push
those costs onto the consumer, where
the choice should ideally lie.
The takeaway? Supply chains are
increasingly considering the cost and
availability of trucking capacity in their
root optimization routines. To do that
with any measure of success, they
need a reliable source of information,
and on as many carriers as possible.
The answer will be a grand database
on trucking, a blockchain that instantly

FOOD SHIPPERS OF AMERICA | www.foodshippersofamerica.org |

33


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Table of Contents for the Digital Edition of Food Shippers of America - Fall/Winter 2017

President's Letter
Help Wanted
The Value in Orchestrating a Scheduled Transportation Plan
Building Better Supply Chains with Blockchain
Blockchains for Trucking
Truck Platooning
Regulatory Update
Rail Update
Evolution of Logistics: Developing Our Leaders of Tomorrow
Dinner at the Door
Industry Forecast
Retail Trends
Food and Beverage Industry Undergroing Transformation
Not My Tribe: Beyong Millennial Stereotypes
Where Did the Milk Go?! Or, Why You Should Optimize Your Website Before Redesigning It.
Burris Logistics
Vantix Logistics
FSA Members
Membership Application
Index of Advertisers
Food Shippers of America - Fall/Winter 2017 - Intro
Food Shippers of America - Fall/Winter 2017 - cover1
Food Shippers of America - Fall/Winter 2017 - cover2
Food Shippers of America - Fall/Winter 2017 - 3
Food Shippers of America - Fall/Winter 2017 - 4
Food Shippers of America - Fall/Winter 2017 - 5
Food Shippers of America - Fall/Winter 2017 - 6
Food Shippers of America - Fall/Winter 2017 - 7
Food Shippers of America - Fall/Winter 2017 - 8
Food Shippers of America - Fall/Winter 2017 - 9
Food Shippers of America - Fall/Winter 2017 - 10
Food Shippers of America - Fall/Winter 2017 - President's Letter
Food Shippers of America - Fall/Winter 2017 - 12
Food Shippers of America - Fall/Winter 2017 - 13
Food Shippers of America - Fall/Winter 2017 - Help Wanted
Food Shippers of America - Fall/Winter 2017 - 15
Food Shippers of America - Fall/Winter 2017 - 16
Food Shippers of America - Fall/Winter 2017 - 17
Food Shippers of America - Fall/Winter 2017 - 18
Food Shippers of America - Fall/Winter 2017 - 19
Food Shippers of America - Fall/Winter 2017 - 20
Food Shippers of America - Fall/Winter 2017 - The Value in Orchestrating a Scheduled Transportation Plan
Food Shippers of America - Fall/Winter 2017 - 22
Food Shippers of America - Fall/Winter 2017 - 23
Food Shippers of America - Fall/Winter 2017 - Building Better Supply Chains with Blockchain
Food Shippers of America - Fall/Winter 2017 - 25
Food Shippers of America - Fall/Winter 2017 - 26
Food Shippers of America - Fall/Winter 2017 - 27
Food Shippers of America - Fall/Winter 2017 - 28
Food Shippers of America - Fall/Winter 2017 - 29
Food Shippers of America - Fall/Winter 2017 - 30
Food Shippers of America - Fall/Winter 2017 - 31
Food Shippers of America - Fall/Winter 2017 - 32
Food Shippers of America - Fall/Winter 2017 - Blockchains for Trucking
Food Shippers of America - Fall/Winter 2017 - 34
Food Shippers of America - Fall/Winter 2017 - 35
Food Shippers of America - Fall/Winter 2017 - Truck Platooning
Food Shippers of America - Fall/Winter 2017 - 37
Food Shippers of America - Fall/Winter 2017 - 38
Food Shippers of America - Fall/Winter 2017 - 39
Food Shippers of America - Fall/Winter 2017 - 40
Food Shippers of America - Fall/Winter 2017 - Regulatory Update
Food Shippers of America - Fall/Winter 2017 - 42
Food Shippers of America - Fall/Winter 2017 - 43
Food Shippers of America - Fall/Winter 2017 - 44
Food Shippers of America - Fall/Winter 2017 - Rail Update
Food Shippers of America - Fall/Winter 2017 - 46
Food Shippers of America - Fall/Winter 2017 - 47
Food Shippers of America - Fall/Winter 2017 - 48
Food Shippers of America - Fall/Winter 2017 - Evolution of Logistics: Developing Our Leaders of Tomorrow
Food Shippers of America - Fall/Winter 2017 - 50
Food Shippers of America - Fall/Winter 2017 - 51
Food Shippers of America - Fall/Winter 2017 - 52
Food Shippers of America - Fall/Winter 2017 - 53
Food Shippers of America - Fall/Winter 2017 - 54
Food Shippers of America - Fall/Winter 2017 - 55
Food Shippers of America - Fall/Winter 2017 - 56
Food Shippers of America - Fall/Winter 2017 - 57
Food Shippers of America - Fall/Winter 2017 - 58
Food Shippers of America - Fall/Winter 2017 - 59
Food Shippers of America - Fall/Winter 2017 - 60
Food Shippers of America - Fall/Winter 2017 - 61
Food Shippers of America - Fall/Winter 2017 - Dinner at the Door
Food Shippers of America - Fall/Winter 2017 - 63
Food Shippers of America - Fall/Winter 2017 - 64
Food Shippers of America - Fall/Winter 2017 - 65
Food Shippers of America - Fall/Winter 2017 - 66
Food Shippers of America - Fall/Winter 2017 - 67
Food Shippers of America - Fall/Winter 2017 - 68
Food Shippers of America - Fall/Winter 2017 - 69
Food Shippers of America - Fall/Winter 2017 - 70
Food Shippers of America - Fall/Winter 2017 - 71
Food Shippers of America - Fall/Winter 2017 - 72
Food Shippers of America - Fall/Winter 2017 - 73
Food Shippers of America - Fall/Winter 2017 - 74
Food Shippers of America - Fall/Winter 2017 - Industry Forecast
Food Shippers of America - Fall/Winter 2017 - 76
Food Shippers of America - Fall/Winter 2017 - Retail Trends
Food Shippers of America - Fall/Winter 2017 - 78
Food Shippers of America - Fall/Winter 2017 - 79
Food Shippers of America - Fall/Winter 2017 - 80
Food Shippers of America - Fall/Winter 2017 - Food and Beverage Industry Undergroing Transformation
Food Shippers of America - Fall/Winter 2017 - 82
Food Shippers of America - Fall/Winter 2017 - 83
Food Shippers of America - Fall/Winter 2017 - 84
Food Shippers of America - Fall/Winter 2017 - 85
Food Shippers of America - Fall/Winter 2017 - 86
Food Shippers of America - Fall/Winter 2017 - 87
Food Shippers of America - Fall/Winter 2017 - 88
Food Shippers of America - Fall/Winter 2017 - 89
Food Shippers of America - Fall/Winter 2017 - 90
Food Shippers of America - Fall/Winter 2017 - Not My Tribe: Beyong Millennial Stereotypes
Food Shippers of America - Fall/Winter 2017 - 92
Food Shippers of America - Fall/Winter 2017 - 93
Food Shippers of America - Fall/Winter 2017 - Where Did the Milk Go?! Or, Why You Should Optimize Your Website Before Redesigning It.
Food Shippers of America - Fall/Winter 2017 - 95
Food Shippers of America - Fall/Winter 2017 - 96
Food Shippers of America - Fall/Winter 2017 - Burris Logistics
Food Shippers of America - Fall/Winter 2017 - Vantix Logistics
Food Shippers of America - Fall/Winter 2017 - 99
Food Shippers of America - Fall/Winter 2017 - 100
Food Shippers of America - Fall/Winter 2017 - FSA Members
Food Shippers of America - Fall/Winter 2017 - Membership Application
Food Shippers of America - Fall/Winter 2017 - Index of Advertisers
Food Shippers of America - Fall/Winter 2017 - 104
Food Shippers of America - Fall/Winter 2017 - 105
Food Shippers of America - Fall/Winter 2017 - 106
Food Shippers of America - Fall/Winter 2017 - cover3
Food Shippers of America - Fall/Winter 2017 - cover4
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