Delivery Giant UPS Looks Forward To Blockchain For Streamlining Its Logistics

UPS, which is among the oldest companies in the delivery business, has been through a lot of changes over the years. The 110-year old company right now believes that blockchain could be the next chance to streamline its delivery logistics.

The news comes from documents published by the US Patent & Trademark Office (USPTO) in which the Georgia-based delivery giant seems to have applied for a patent that utilizes blockchain and distributed ledger technology (DLT) all in order to route packages throughout an international supply chain.

The blockchain system will also help the packages which include multiple carriers. Originally filed on February 16th, this patent is believed to increase efficiency and minimize costs for UPS – especially when it comes to coordinating logistics for shipments that involve more than one service provider.

As the authors of the application explained:

“[T]here may be scenarios in which it is advantageous for various logistics service providers to transport the shipment unit along different legs/segments from its origin to its destination. However, it may be difficult to coordinate the transportation of the shipment unit through the various logistics service provider transportation networks. Moreover, if there are special handling requirements for transporting the shipment unit, it may be difficult to ensure that the special handling requirements are carried through by each of the various logistics service providers that may assist in transporting the shipment unit.”

Right now, UPS plans to tackle the problems with an autonomous system that will use an immutable blockchain ledger to route packages through multiple logistics service provider networks.

That way, the system will select routes for automatically-scanned packages (ready for delivery) – all based on the service offerings of the network-connected shipping providers.

“Accordingly, various embodiments may comprise and/or utilize digital currency/assets represented by ledger entries. Such digital currency/assets (e.g., Bitcoin, Ether, and/or the like) may itself have value that may be exchanged for various shipment units, services, and/or the like.”

With this, UPS believes that it can integrate its system, reduce the costs and increase efficiency as they fulfill the obligations with a particular leg on each shipment.