June 1, 2024 | HEALE Labs

Blockchain’s immutable, interoperable properties are often touted for their potential to transform various industries, from global trade and energy to real estate and digital ID. This is why HEALE has chosen to apply blockchain to logistics – we believe the industry is riven with long-standing inefficiencies that this technology is uniquely equipped to solve.

While HEALE’s solution is at the forefront of blockchain application in logistics, the idea that web3 tech can solve many of the industry’s pain points is not new. So, why haven’t we seen a solution emerge that does just that? And what makes blockchain the right fit?

The Rise and Fall of TradeLens (And Others)

On the face of it, distributed ledger technology is tailor-made for logistics. Inherent features such as transparency, cryptographic security and decentralization suggest a logistics-focused network would benefit from multiple efficiencies, such as accurate asset tracking, a tamper-proof record of ownership/shipment activity, and traceable (not to mention borderless) transactions.

In truth, there are dozens of advantages to bringing web3 to logistics – we discuss many of them in our freshly updated whitepaper. It’s just a question of combining the constituent parts – network, smart contracts, crypto, Self-Sovereign ID, Zero-Knowledge Proofs, etc.– to deliver value for all parties: shippers, freight brokers, truckload carriers, drivers, ELDs, TMSs, etc.

Although critics may argue that the failure of other blockchain logistics projects – including Maersk and IBM’s TradeLens – show such advantages to be illusory, we disagree. These solutions failed because they lacked scalability, and in some cases, stakeholders didn’t trust competitors to operate the platforms neutrally. But blockchain has come a long way since the rise and fall of many of these ventures, and the industry’s aversion to a tightly-controlled centralized solution has been duly noted.

Although many blockchain-based logistics solutions have come and gone, it’s crucial to note that there is an evident appetite for web3 solutions – provided they can assuage the concerns of stakeholders, achieve the necessary scalability, and enhance existing operations without requiring a huge investment.For instance, in the case of TradeLens, we should note that the project was not a total flop: in four years it tracked nearly 4 billion events and processed over 70 million containers, with 300 clients (ocean carriers, port operators, customs authorities, etc) onboarded.

Data and Security – Two Potential Areas of Improvement

There are many reasons why logistics needs web3. But let’s focus on just two areas: data and security.

Data is the DNA of logistics. Without data, goods simply wouldn’t move from A to B. But logistics has a data standardization problem. Adopting standards and best practices that would benefit the entire industry is prohibitively expensive, with the cost of change perceived to be higher than the cost of staying the same. Thus, the majority of players (distributors, intermodal providers, etc) stick with their own internal systems and data formats.

Expecting global logistics to operate efficiently amid so many incompatible data systems is foolish. The lack of standardization results in suboptimal data exchange, inventory discrepancies, fulfillment delays, increased processing time, and inaccurate production schedules. The Data Warehousing Institute estimates that bad data costs logistics companies over $600 billion a year.

That’s problem one. Problem two is security. Documented strategic cargo theft events increased 430% year-over-year in Q3 2023, with a significant uptick in identity theft, hostage loads, late shipments, and other kinds of criminal intelligence records. Malware continues to be used by bad actors to interrupt supply chain processes and steal sensitive data. This problem is compounded by the amount of unsophisticated legacy infrastructures still used in logistics today.

With an open and secure decentralized logistics network that all stakeholders can plug into, without having to trust a third party, both of these issues can be addressed. HEALE’s ZK-powered blockchain benefits from tremendous scalability, incentivizes all parties to use best practice and share data, and employs end-to-end encryption. The outcome is reduced costs, improved shipment visibility, streamlined coordination, and increased profitability.To find out more about how HEALE can transform logistics for the better, visit https://healelabs.com/.

Anyone who has ever laid eyes on a loaded cargo ship has probably wondered about the complex processes that move goods from A to B. While the systems that keep the wheels of international trade turning are certainly expensive, they are not infallible. On the contrary, the logistics industry is plagued by inefficiencies that collectively cost businesses hundreds of billions of dollars each year.

From data silos caused by disconnected systems to inefficient shipment coordination – not to mention avoidable fraud, theft, errors, and waste – the transportation sector is under enormous pressure. It’s a pressure shouldered by individuals too, from shippers and freight brokers/forwarders who waste time chasing down vital information to coordinate pickups and deliveries, to overworked truck drivers facing tight deadlines and irregular working hours.

It’s little wonder the industry has actively explored tech-based solutions to these various issues, like autonomous vehicles, data automation tools and IoT integration. The problem is, logistics is a slow-moving beast: the cost of adopting slick new tech to streamline a shipment is higher than the cost of doing nothing. Even the expense of adopting data standards and best practices to address many of the aforementioned problems is too steep for most – with unclear benefits and ROI.

All of the pain points affecting logistics won’t be solved overnight. But confronting the longstanding data problem seems like a logical starting point. What does this actually mean in practice? It means connecting the various competing systems, whether EDI or API, and normalizing the data that flows through them so that operators coordinating shipments aren’t making decisions with incomplete, inaccurate or out-of-date information.

If such a thing were possible, wouldn’t the industry become more reliable, profitable and efficient very quickly? We think so. That’s why we built HEALE.

The Three Pillars of HEALE

HEALE offers a suite of solutions that promises to streamline logistics without the eye-watering setup costs and unclear ROI. The platform has three pillars: an open network that tokenizes data and assets to create a master record all parties of a shipment can view and update in real-time; a user-friendly Unified API that connects to any TMS, ELD and ERP; and a wallet that rewards shippers, brokers, carriers and drivers for following best practices that drive efficiency, including sharing visibility data and getting goods to their destination undamaged.

In a nutshell, HEALE provides a streamlined data model to save shippers, freight brokers/forwarders and carriers time and money, while economically incentivizing everyone to follow best practices.

Adding another layer of complexity to an industry already teeming with processes and systems is not in anyone’s interest. What we intend to do is simplify. With HEALE, any technology can easily connect to a single integration rather than dozens or even hundreds, enabling them to better manage the constant flow of information and documentation.

Our open network is also designed to optimize efficiency, verifying data from the shipment lifecycle, then adding it to a distributed ledger to create a record everyone can trust. This data can include the location, condition and availability of people, shipments, assets and capacity, as well as validating that the right carrier picks up – and delivers – the correct shipment on time.

Make Logistics Predictable Again

Eliminating bad data isn’t enough. We want to make sure good data is protected. That’s why we use end-to-end (E2E) encryption to mitigate the risk of cyberattacks and give all stakeholders peace of mind. We take great pride in ensuring our advanced logistics technology is complemented by best-in-class military-grade security.

Our vision for predictable, profitable logistics supported by dependable data and aligned economic incentives is the product of two years of rigorous development work by a team whose collective experience spans decades in tech, logistics and finance.

HEALE was founded by Todd Haselhorst, a serial technology entrepreneur who once worked as a freight broker and built multiple platforms in the space – and so intimately understands the issues plaguing the industry. Chief Product Officer John Monarch, meanwhile, is a logistics veteran who currently serves as Supply Chain Specialist at the United Nations Economic Commission for Europe. While our EVP of Truckload Sales, Dave Halsema, is a former executive at one of North America’s leading freight brokerage firms, Total Quality Logistics.

Without putting too fine a point on it, we didn’t pull logistics out of a hat. We know the industry, appreciate the challenges it faces, and are intent on transforming the landscape for the better.

The Time is Now

The way goods are moved needs to change. We’ll achieve this by making quality data and best practices the norm in an industry that for too long has been characterized by chaos. We’ll do it by lowering prices for shippers, granting brokers more predictability, helping carriers with driver retention, and making sure truckers earn more money per mile.

With our scalable data infrastructure, commitment to cybersecurity, unique rewards system and visionary founding team, HEALE is on track to succeed where others have failed. There is nothing quite like what we are building currently available.

Having already raised funds from investors and secured partnerships with industry entities who are currently integrating our technology, we are looking forward to the future. A future in which the global logistics industry is defined by accurate data, interoperability and incentivized collaboration.