Linfinity organised a roundtable conference themed “Explore the Future of Blockchain Technology” at the W Hotel in Hong Kong. Notable industry leaders were invited to share their insights on the commercialisation of blockchain technology, including the chairmen of the Hong Kong Shippers’ Council (HKSC) and the Hong Kong Association of Freight Forwarding and Logistics Ltd (HAFFA).
The roundtable is hosted by Linfinity CEO Anndy Lian. He said, “Right now, industry insiders are beginning to understand the concept of blockchain and shifting their focus to its commercial applications. More companies are seriously considering it and starting to conduct pilot tests. The value of blockchain to traditional businesses is heavily reliant on how these businesses and industries embrace this technology. As of now, the most direct way of applying blockchain to real life scenarios is to implant it into supply chains and speed up its integration with traditional businesses.”
Bringing information onto the chain to speed up product circulation
Hong Kong is a global air cargo hub. Due to a mix of unique geographical and political factors, it has stayed at the top of air cargo rankings for 18 years consecutively. In 2017, it handled over 5 million metric tons of cargo, becoming the first airport to achieve that within a year. HAFFA chairman Brian Wu said, “As the volume of trade increases, traditional methods of transporting freight are unable to accommodate growing needs anymore. We need to develop a more effective method quickly. Unquestionably, blockchain technology will be revolutionary for the logistics industry. Besides increasing the speed, it greatly decreases administrative and labour costs. We are excited about how it is going to value-add to the industry.”
Responsibility tracking to protect all parties’ rights
One of the main predicaments that the logistics industry has been facing is the asymmetry of information. Responsibility tracking has hence emerged as an important way to make the supply chain more transparent. HKSC chairman Sunny Ho said, “We have deeply experienced the pain of the lack of transparency in the supply chain. A lot of time and money are spent to resolve legal disputes. HKSC’s aim is to protect shippers’ rights in logistics processes. We look forward to the role blockchain can play in the supply chain, as it will help us greatly in tracking information and protecting the rights of all parties.”
Logistics is an essential aspect of the supply chain. By combining Cloud TQM (Total Quality Management) and blockchain technology, Linfinity has built quality control and digital certification platforms that bring logistics information onto the blockchain. Such a traceable, trustable system minimizes communication and risk control costs.
Increasing consumers’ confidence with anti-counterfeit tracking
As of February this year, the Hong Kong retail industry is estimated to be worth around 452 billion Hong Kong dollars. It is an increase of 29.8% since last year, establishing it as a record increase since 2010. “This is good news for retailers. But at the same time, we face more challenges, especially counterfeit products,” said Louis Lau from Hong Kong cosmetics chain Angel Beauty Bar.
He added, “Counterfeit products are a huge problem in the cosmetics industry. Existing anti-counterfeit technology is unable to fulfill market needs anymore. We have been looking for a new solution for the longest time, which is why we anticipate blockchain technology’s applications. I think it can potentially greatly resolve the counterfeit problem in cosmetics.”