dnata Successfully Tests Blockchain Technology - Global Trade Magazine
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  December 15th, 2017 | Written by

dnata Successfully Tests Blockchain Technology

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  • Testing blockchain technology for airfreight transportation in Dubai.
  • Success of blockchain study means greater security, efficiency and cost savings.
  • Success of blockchain initiative gives the industry a boost towards seamless service delivery.

dnata’s cargo operations, in conjunction with Emirates Innovation Lab, IBM, and flydubai Cargo, has created a new value proposition for cargo service delivery through the use of blockchain technology. This has added value by eliminating redundant data and improve visibility and transparency for all stakeholders. As a result, processes can been more streamlined and simplified right from the origin to the final destination.

Blockchain technology is a secure, public electronic ledger and peer-to-peer network, that can be managed autonomously to exchange information between different parties.

“The success of our study to use blockchain technology in our operations means greater security, efficiency and cost savings to our customers,” said Kevin Ennis, Vice President Commercial and Business Development for dnata’s UAE Cargo Operations. “We are on the cusp of revolutionizing the way we operate, and the success of this initiative with our partners will give the industry a real boost towards seamless service delivery.”

In cargo much of the processes is traditionally paper based, which requires multiple sign-offs by inspectors and receivers before goods can be delivered. Even when the system is electronic, it still requires multiple parties to sign off on cargo shipments, creating a lengthy administrative process. To try and streamline this process, blockchain technology can be used to manage and track the paper trail of cargo containers by digitizing the supply chain. In such a scenario, what makes blockchain infallible is that, no one party can modify, delete or even edit any one of the blocks without the consensus from others on the network.

flydubai Cargo and dnata, in collaboration with Emirates Innovation Lab and IBM jointly developed a logistics platform in which blockchain infrastructure was implemented for supply chain transactions from a purchase order from the origin to delivery to the Consignee warehouse at its destination. Through the proof of concept, the participants were able to identify issues from various perspectives such as technology, security, operation, legal perspectives, and were able to realize new supply chain services including digitization of documents.

Blockchain technology has great potential to exponentially improve efficiency and transparency of business networks, especially in cargo and logistic flows,” said Neetan Chopra, Senior Vice President – IT Strategic Services, Emirates Group. “However neither the technology nor the potential is easy to understand or appreciate. Hence it is imperative to carry out such business experiments and trials so that participants can experience the benefits of breakthrough technologies in a live environment.”

The blockchain technology for dnata’s cargo operations is a very secure way of sharing information among parties. It creates a permanent, digital public ledger of transactions which can be shared among a distributed network of computers. The sharing possibilities of this technology create endless opportunities for logistics/supply chain applications. These include improvements of transparency and data sharing across the supply chain, better tracking of orders, reducing errors and better fraud detection.

“Blockchain technology is able to transform sectors far beyond financial services,” said Mohamed Hassan, Vice President of flydubai Cargo. “It improves the way we work together in providing reliable and convenient airfreight as it provides end-to-end services. As a result of this collaboration, flydubai Cargo has become the first airline to complete a Proof of Concept (PoC) using blockchain technology in airfreight transportation.”