Tech giant IBM announced its collaboration with AOS, a Colombian company specializing in providing business solutions, to create a blockchain-based solution to enhance the efficiency in logistics and transport sector across the nation. The solution is built on IBM Blockchain and Watson IoT on the IBM Cloud.

With the traditional supply chain transactions that are completed manually, there exist delays and a higher risk for recording error, which can cause differences between what was recorded and what was actually loaded. With the solution, blockchain and IoT will capture the relevant information directly from the sensors placed on the trucks, and entered onto the blockchain. This will create a single, shared repository that can be accessed by all authorized participants.

“The proper handling and use of information on transactions and exchanges related to cargoes is key to the logistics and transportation industry. Therefore, our main objective with this solution is to provide transparency and security throughout the transport cycle”, Ricardo Buitrago, Director of Innovation at AOS, said. “Today, the solution is available as a functional prototype on the IBM Cloud, for companies in the logistics, supply chain and transportation sectors throughout Colombia.”

The blockchain solution will enable an automatic message sent to the customer, informing them about the load, weight and estimated time of arrival of the truck. Also, IoT and blockchain generates an information repository through the sensors located on the trucks, which tracks the exchanges from the distribution point to the final customer, the release stated.

“One of the biggest challenges in the logistics and transportation industry is the protection of its assets and cargoes, as the correct monitoring and tracking of all transactions involving such charges. That is why the implementation of this type of blockchain and IoT solution in the cloud is an opportunity to access critical data on-demand and make more informed decisions for the benefit of business,” Jorge Vergara, IBM Colombia CTO, explained.

The company said that the solution is expected to include new functionality including an electronic seal mechanism for land cargoes control and monitoring, in the future.