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.
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.
This is Heale.
The $9.7 trillion logistics industry is complex, fragmented, and plagued by an absence of data standards, transparency, and trust. In a sector where accurate, real-time data is essential for efficient operations, the proliferation of bad data has paradoxically become an open secret that costs companies hundreds of billions of dollars each year.
With no universal data standards or best practices in place, logistics firms operate as silos, closely guarding their data and stubbornly wary of collaboration. Naturally, this opaque methodology has fostered mistrust between firms, all of whom daily contend with the same inaccurate, out-of-date, irrelevant, and tainted data.
The Steep Cost of Bad Data
The industry’s bad data problem cannot easily be dismissed. An inefficiency results in increased costs, late shipments, inaccurate capacity forecasts, supply bottlenecks, wasted resources, lost opportunities, and even stolen shipments.
Take inaccurate data as one example. A single botched digit caused by an everyday human error can lead to inefficient truck routing, causing delays and increased fuel consumption. Outdated capacity data, meanwhile, can result in underutilized assets or missed opportunities for backhaul. Tainted data implanted by bad actors can compromise security, making shipments vulnerable to theft or loss.
The root cause of the industry’s dodgy data problem is the lack of a collaborative ecosystem and an absence of incentives for stakeholders to share accurate, up-to-date information. Companies have little motivation to prioritize data integrity without a system that rewards transparency and data quality.
But how can this be, you may wonder? Indeed, the motivation is to address the financial black hole caused by bad data throughout the company. That is true, but logistics firms cannot see the wood for the trees. The perception is that the cost of changing their data and associated operating models is too high. Thus, they continue on the same compromised path.
Elevating Data Standards Industrywide
Enter HEALE, a Token Incentivized Data Infrastructure Network (TIDIN) that aims to solve the logistics industry’s data woes by creating a truly collaborative and interoperable ecosystem everyone can trust.
A type of Decentralized Physical Infrastructure Network (DePIN), HEALE integrates multiple data sources and normalizes them into a single data model. By tokenizing logistics assets such as pallets, trucks, trailers, and containers, the open network creates a durable on-chain record for each item, enabling unprecedented traceability across the supply chain.
However, HEALE’s real power lies in its token reward model, which motivates stakeholders to use and share accurate data throughout the shipment’s lifecycle. By creating an economic benefit for data integrity, HEALE compels shippers, freight brokers, carriers, and drivers to prioritize data quality, fostering a more collaborative and efficient working method.
The HEALE Platform in Action
The impact of HEALE is already being felt in the logistics industry. Our platform has witnessed $2.2 billion in transaction volume committed to the network, involving 197,000 shipments from 310 shippers and 754 carriers with 12,000 trucks.
Recently, we raised $1.1 million in a pre-seed round from supply chain technology fund Venture 53, and we are gearing up for a $6 million seed fundraiser. It’s time to tackle logistics’ dirty data problem, once and for all.
HEALE’s ambition is to become the largest DePIN project in web3 by 2028, revolutionizing the logistics sector by confining data silos to the dustbin and motivating the industry’s players to work in tandem. Our network and associated products (API/SDK, web3 wallet, utility token, reward pool) represent a beacon of hope in an industry plagued by data issues.
Join today’s network to contribute to a more efficient, secure, and cost-effective logistics landscape.
The global freight and logistics industry, like many others, continues to undergo transformation driven by technological advancements and evolving consumer demands. With competition between shippers, truckload carriers, and freight brokerages hotter than ever, firms are naturally keen to stay a step ahead, and one of the best ways to do so is by adopting the latest hardware and software solutions.
Here are three logistics trends and technologies poised to reshape the industry in 2024 and beyond.
Autonomous Vehicles and Drone Delivery
The era of autonomous vehicles and drone delivery is coming into clear focus. Over the next decade, autonomous driving is expected to generate between $300 billion and $400 billion in revenue. The benefits for logistics are obvious, from fast, efficient delivery to reduced labor costs, improved road safety and limited downtime.
As for drones, their ability to handle high payload capacities, maintain long flight times, and make last-minute deliveries – particularly in urban areas – makes their implementation in logistics a no-brainer. Drones also emit far fewer greenhouse gasses than traditional vehicles. Despite generating less than $1 billion in revenue last year, the drone logistics and transportation market could exceed $16 billion by 2030.
Predictive Analytics and Artificial Intelligence
Autonomous vehicles and drones can handle physical transportation, but what about systems that manage the flow of information? Predictive analytics and AI can transform the industry by enabling data-driven decision-making and optimized operations.
Predictive analytics-powered TMSs, for example, help firms anticipate demand patterns and forward-plan inventory levels. By leveraging sensor data and machine learning, equipment failures can also be predicted, reducing downtime and maintenance costs on a significant scale.
AI-powered algorithms can even optimize transportation routes to reduce fuel consumption and carbon emissions, not to mention limit the impact of severe weather. The algorithms can also assist withHR, streamlining the recruitment process by evaluating vast volumes of data to identify patterns and correlations.
Despite the myriad benefits, a recent survey by AWS and US location data platform Here Technologies found that AI and data analytics continue to be underutilized. As such, firms integrating such capabilities into their operations stand to gain a significant competitive advantage.
Web3 Technology
Decentralized networks can offer logistics companies several advantages, including enhanced transparency, security, and traceability by bringing data ‘on-chain.’
By tracking moving parts of the supply chain in real-time on a distributed digital ledger, an immutable record of shipment is created, creating a single source of truth that can be trusted and relied upon by all stakeholders.
Smart contracts, self-executing contracts that execute once certain stipulated conditions have been met, can also automate processes such as payments, and remunerating drivers once the terms of their employment have been met. They can also be employed to initiate escalation procedures when pre-agreed deliverables fail to materialize.
The web3 tech stack extends beyond open networks and smart contracts, encompassing things like self-sovereign identities, asset and capacity tokenization, decentralized data storage, self-custody digital wallets, and advanced Zero-Knowledge cryptography.
All considered, the potential for improved trust, efficiency, and data integrity across the entire supply chain is enormous. That’s why we built HEALE: to capture the value generated by this sophisticated technology and bring it to logistics stakeholders.
Every logistics asset in the HEALE Network is tokenized and shares real-time shipment data, enabling the ledger to establish consensus between trucks, trailers, containers, and warehouses. Our reward model also remunerates users for sharing data and adopting best practices, ensuring raised shipment standards across the board.
Final Thought
Although many logistics firms remain steadfastly loyal to legacy systems and processes, you cannot pause progress – and a convergence of cutting-edge technologies will inevitably transform the way goods are moved and delivered.
Firms willing to embrace the latest trends and technologies are destined to gain a competitive edge by offering fast, efficient, and secure solutions. Now more than ever, keeping ahead of the curve is essential for success in the ever-evolving freight landscape.
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