The APAC arm of logistics giant UPS is working on a blockchain proof of concept with ASX-listed software provider Yojee.
UPS Asia Group will trial Yojee’s blockchain technology within its supply chain environment from early April.
“Deploying technology-enabled operations for maximum efficiencies remains a priority for UPS. We look forward to working with Yojee to identify the application of new technologies to our business,” Rob Houck, vice president of strategy, UPS Asia Pacific, said in a statement today.
The Subiaco, Western Australia, based Yojee has identified three areas of focus for its blockchain offerings in logistics: Procurement, to enable new ways to source, agree, insure and pay using smart contracts and coins; processing to streamline processes to be ‘single document, single entry, multi-party’ and; provenance to indisputably prove the movement of an object across a supply chain and its participants.
“We look forward to working with UPS, the world’s largest package delivery company, to pilot Yojee’s blockchain-backed platform in the Asia Pacific region, the largest and fastest growing region in global logistics. This Blockchain Pilot Services Agreement with UPS highlights the global interest in applying blockchain technologies to the freight and logistics industry and Yojee’s unique sector capabilities,” said Yojee managing director Ed Clarke today.
This morning’s announcement saw shares in Yojee jump by more than 14 per cent to 21.7 cents.
UPS sees great potential in blockchain particularly within its customs brokerage business. In November it described how it was seeking to replace manual paper-based processes with the technology.
“Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage,” said Linda Weakland, UPS director of enterprise architecture and innovation, said at the time.
“The technology has the potential to increase transparency and efficiency among shippers, carriers, brokers, consumers, vendors and other supply chain stakeholders.”
The company is a member of the Blockchain in Transport Alliance (BiTA).