To explore the potential application of technology (blockchain) in the field of marine logistics to achieve transparency, traceability and contract fulfilment while integrating logistics with banks.

1. BLOCKCHAIN IN SUPPLY
CHAIN
Explorative study about ‘Blockchain for Logistics and
International Trade’

2. AGENDA
Background of Study
Problem Statement
Research Objectives
Research Questions
Hypothesis
Contribution of Study
Literature Review
Conceptual Framework
Case Studies
Methodology
Managerial Implication & Implementation
Limitations & Future Research

3. BACKGROUND
About 90% of world trade is carried out by the marine shipping and is
the lifeblood of world trade/world economy
Per WEF Global GDP can be improved by 5 % Trade by 15% by
eliminating the bureaucracy in International Trade.
Customs Bureaucracy & Logistics actors have conflicting interests &
no commitment
Marine shipping involves mountains of paper work and actual
shipment takes few hours only
Counterfeit products, and no visibility on the quality and origin of the
shipped goods for buyers
Technology adoption has aspect like society, governments, economy
& science

4. BACKGROUND – BLOCKCHAIN EVOLUTION

5. BACKGROUND – BANKS ROLE IN TRADE/SUPPLY
CHAIN
Manual verification of the
documents both by
Exporter's Bank & Importer's
Bank

6. PROBLEM STATEMENT
To explore the potential application of
technology (blockchain) in the field of marine
logistics to achieve transparency, traceability
and contract fulfilment while integrating
logistics with banks.

7. RESEARCH OBJECTIVES
The general objective of this research is to study
To achieve transparency, traceability and transport contract fulfilment in
the field of marine logistics while integrating logistics with banks.
SPECIFIC OBJECTIVES
To find out how blockchain based supply chain solutions can be integrated with
the transaction guarantors (i.e. banks) i.e a Research gap .
To study the adoption/integration challenges of the block chain technology in
Supply Chain & Banks.

8. RESEARCH QUESTION
RQ1:
Why blockchain technology should be used to ensure transparency in
the supply chains?
RQ2:
How could blockchain help secure & execute the transport contracts
in a digital way?
RQ3:
What are the challenges in the adoption of technology (blockchain)
to solve supply chain problems.

9. CONTRIBUTION OF STUDY
Contribute to the research field of logistics and supply chain
management from the perspective of International trade.
Filling the Gap about the role of Banks in international Trade/Supply
chain and the technological integration of banks with supply chain
Industry

10. LITERATURE REVIEW
Variable Example of Reviewed Literature
Challenges in Supply
Chain
BLOCKCHAIN IN LOGISTICS
DHL Trend Research
Technology adoption in
Supply Chain & UTAUT
Diffusion of Innovation theory by Rogers & UTAUT
Smart Contracts and
Block Chain
Blockchain’s roles in meeting key supply chain management
objectives
Nir Kshetri , International Journal of Information Management
Blockchain for Bank
Trade Finance
IBM Case Study

11. CONCEPTUAL FRAMEWORK
Literature
Review
•Blockchain in Supply Chain & Gaps
•UTAUT & Diffusion of Innovation (Rogers)
Case Study
Review
•Findings (DHL+Accenture+Banks)
Implementation
•Implementation of Blockchain Trade
Platform

12. UTAUT – FRAMEWORK WITH ADDITIONAL
CONSTRUCTS
RQ # 03
Previous work +
Swanson & Kristoffer
Constructs
1. Technology Trust
2. Inter-Organizational Trust

13. UTAUT – FRAMEWORK CORE
CONSTRUCTS
Performance Expectancy
Transparency results in better performance because greater visibility help all
involved actors forecast and plan better.
Effort Expectancy
offers “smart contracts” are effortless and seamless as they run on the pre-
coded yet mutually agreed rules.
Social Influence
Singapore government incentives for early adopters of a blockchain based
supply chain platform.
Facilitating Conditions
Enough technical support, The distributed and service-oriented nature of
blockchain is less monopolistic and affordable.

14. UTAUT – FRAMEWORK WITH
ADDITIONAL CONSTRUCTS
Technology Trust
“Trust in technology directly influences the relationship between
Performance Expectancy+ Effort Expectancy + Facilitating Conditions and
Behavioural Intention”. (Swanson, 2017).
More the positive usage of blockchain grows more the trust grows.
Inter-organizational Trust
Inter-organizational Trust positively moderates the relationship between
Performance Expectancy+ Effort Expectancy+ Social Influence+ Facilitating
Conditions and Behavioural Intention.
Trust between organizations/institutions within the industry and it helps
accept technology and information sharing.
Technology help build relationship between multiple fragmented layers of
actors with its inherent fool proof features.

15. DIFFUSION OF INNOVATION BY
ROGERS
Evaluating Technology as innovation
Implemented in financial sector (being one area) and has great
potential to nourish the area of marine shipping industry (in another
area).
Relative Advantage
 Lower Transaction cost
 Eliminates the government (customs) bureaucracy & banking processing delays
 Transparency and open access to the information and enhanced visibility
 Access to information leads to better & informed decision by the buyers and
provide level playing field.

16. FINDINGS FROM LITERATURE REVIEW
& LIMITATIONS
Offerings
A decentralized but facilitated/regulated blockchain is the key
Blockchain helps businesses be transparent and profitable at the
same time
Provides level playing field for small players through transparency
Challenges
Onboarding & Collaboration of multiple layers of actors
Extreme bureaucracy of Customs, Govt. departments ; a main hurdle
UTAUT being predictive model does not provide any practical
guidelines for the implementation & promotion of the technology
itself

17. CASE STUDIES

18. CURRENT STATE- CASE
STUDY- MIZUHO
Case Study: Marubeni
Corporation and Sompo
Japan through Mizuho
Blockchain is a mutual yet
audited consensus solution
to remove bureaucracy
POC - issuance of contract,
shipping of the goods by the
seller to the buyer followed
by the validation of the
shipment against the
contract and finally payment
by the buyer to the seller
with minimal human
intervention

19. CASE STUDY- MAERSK & IBM,
ACCENTURE & DHL (RQ# 02)
IBM & MAERSK
Industry adoption of bill of lading , the
main contract in marine shipments
Shipment & Tracking and visibility for
all parties and processing million of
documents
ACCENTURE & DHL
Blockchain-based trade platform to bring
on board all parties in international trade
ecosystem i.e shippers, consignees,
carriers, forwarders, ports, customs
agencies, banks, and insurance
Digitising the traditional ‘Bill of Lading’
with a digital one

20. CHALLENGES FOUND FROM CASE
STUDIES
Social acceptance in Corporate world and network affects,
connecting end nodes
Sstandardization of international trade contacts, documents formats,
file formats
Need for incentives for early adopters and initiatives required by
regulators & governments

21. RQ# 01 - ALTERNATIVES – PROS &
CONS
Dimension Conventional tech & paper
based
Blockchain based solution
Standards Proprietary Community based & Mutually agreed
Duplication
of Effort
Redundancy of inputs & data
errors
Data is input only once & then
utilized
Single Eco
System
Non- aligned & fragmented All parties are either on one platform
or connected to it
Bureaucracy
& Monopoly
High , Customs, Governments Level playing field for small players,
decentralized
Cost Driver
& Cost
high business volume results
into discounts
Based on processing power required
for communication
Intermediari
es
Many Just facilitators
Smart
Contract
Manual / Not possible Auto- execution & validation of
contract terms
Government
Incentives
Minimum , rather high
compliance cost
Incentives for early adopters in some
countries

22. METHODOLOGY
Method : Qualitative (Literature Review + Case Study Review)
Time Horizon: Past five years (2103-2018)
Unit of Analysis : Organizational (Industry)
Research Instrument : Not Applicable
Method of Data Collection: Secondary data (Literature + Case
Studies)
Population: International Shipping Industry
Sampling Method: NA
Sample Size : No Sample (Empirical Study)
Analyses : Content Analysis , Qualitative Analysis

23. MANAGERIAL IMPLICATIONS-
IMPLEMENTATION
Critical Success Factors – National Trade Platform
Singapore government to create a culture of collaboration for all
actors like IINTRA, MAS & Customs department
Set up knowledge and capabilities like sharing the information about
Inter operability, integration standard and encourage their adoption
To engage all stakeholders for trial of technology and set realistic
expectation
Implementation
Phase 1- Proof of concept and prototype
Phase 2- Testing at small scale and pilot implementation
Phase 3- Scaling, adjusting and full Implementation

24. LIMITATIONS AND FURTHER STUDY
RECOMMENDATIONS
There is still need to rethink the blockchain based trade platform
together with robotics & artificial intelligence
Once the A.I & Robotics are involved then the information flow along
with the flow of goods & services will require rethinking
Integration of the blockchain based solution with legacy system
cannot be avoided and requires lots of business process re
engineering