Electronics giant Samsung has been eyeing the cryptocurrency space – first expanding its chip production to include ASIC chips designed for crypto miners, and now the firm is considering utilizing blockchain to manage its global supply chain.
According to a report by Bloomberg, the South Korean electronics firm – under their IT subsidiary Samsung SDS – have been considering adopting blockchain technology to both better track global shipments and save money while doing so. Samsung SDS VP and Blockchain Chief Song Kwang-woo believes that a blockchain-based system could net as much as 20 percent in cost reductions.
The new technology would be implemented alongside Samsung SDS’ Nexledger – Samsung’s in-house, blockchain-based transaction management platform for enterprise.
Song optimistically said the new system “will have an enormous impact on the supply chains of manufacturing industries. Blockchain is a core platform to fuel our digital transformation.”
Samsung SDS plans to move Samsung Electronics’ entire global supply network – with as much as 488,000 tons of cargo and one million shipping containers set for 2018 alone – to blockchain. Shipments include everything from chips designed for other electronics firms, to their own Galaxy S9 smartphones. 2018’s supply chain volume alone reaches tens of billions of dollars, so it is no surprise Samsung sees tremendous value in reducing costs associated with shipping management.
It is not just Samsung considering blockchain for supply chain management. In recent months, everyone from Budweiser parent company Anheuser-Busch to Walmart have begun exploring blockchain as a potential solution. Samsung is getting into the space in other ways, too. Samsung has reportedly begun manufacturing ASIC chips for cryptocurrency miners, with a distributor claiming that Samsung is supplying chips for Halong Miner’s new DragonMint T1 miner.