LogisticsX – Powered by Blockchain Technology to Solve Challenges in the Global Last Mile Logistics Industry
Singapore, 12 July 2018 – Singapore’s last-mile logistics start-up Park N Parcel Pte. Ltd (‘Park N Parcel”) is pleased to announce the partnership between fully-owned subsidiary PNP Logistics Network Pte. Ltd. (‘PNP Logistics Network”) and Blue Whale Foundation Pte. Ltd. (“Blue Whale”) to develop LogisticsX, a decentralised platform utilising Blockchain technology to solve challenges in the global last-mile logistics industry. When developed, Park N Parcel with the largest network of 1,500 active parker points in Singapore, will be the first adopter of the LogisticsX platform. Logistics Network will be launching its Initial Coin Offering (ICO) with their private sale in Mid July 2018.
LogisticsX will allow for a seamless connection between global logistics stakeholders including e-commerce retailers, third party logistics (“3PLs”), individuals managing Parker Point (“Parkers”), individuals couriers delivering parcels (“Runners”) and parcel recipients into a multiparty network.
With the adoption of LogisticsX platform, Park N Parcel aims to transform the last mile delivery sector by increasing security and transparency while reducing the fragmentation between logistics stakeholders currently found in the sector. LogisticsX Token will be used as the main transaction currency that powers the LogisticsX Ecosystem.
Capitalising on Opportunities and Solving Challenges in the Last Mile Delivery Sector
The rising popularity of online shopping is evident from the forecast of Global Retail E-Commerce sales of an astounding USD$4.5 Trillion by 2021. Additionally, in 2016 alone, over 65 billion parcels were shipped worldwide, which constitutes a 48% increase compared to 2014. One of the key business sectors closely related to e-commerce is logistics, a sector which e-commerce merchants heavily rely on to fulfil the deliveries of parcels to online shoppers. An enhanced logistics ecosystem like LogisticsX will also satisfy the continual consumer demands of faster, better, cheaper and fairer. Greater economic empowerment can be created through involving more participants into the logistics ecosystem, at the same time, opportunities from the increasing consumption from the sharing economy can be realised.
As one of the largest industries globally, the logistics sector is facing wide-ranging issues especially with the lack of good infrastructure causing high rates of failed delivery, traditional processes leading to high operational cost and inefficiency, decentralized authentication and the gaping employee shortfall in one of the fastest-growing sectors
With the desire to improve the last mile delivery sector where digitisation and customer expectations continue to evolve, LogisticsX will be introducing the following measures –
1. Creating a Common Global Standard Between Multiple Stakeholders – LogisticsX aims to implement a Standard Operations Procedure (“SOP”) on Blockchain that will unify standards for all stakeholders in the last mile logistics ecosystem, increase trust, improve operational efficiencies with real-time time stamping.
At the start of the last mile value chain are e-commerce retailers. Once orders are made, e-commerce retailers create parcel orders and pass the details to the warehouse for packing, which could entail it being sent to third-party logistics partners (3PLs) for warehousing dispatching. With various 3PLs working with e-commerce retailers, different SOPs will be required for liaising with various 3PLs operations and protocol. With LogisticsX, a common language is adopted between e-commerce retailers and 3PLs, reducing cumbersome adoption of different standards.
2. Introducing Freelance Stakeholders into the Logistics Ecosystem – LogisticsX will introduce the concept of freelancers delivering parcels on an ad-hoc basis (“Runners”) between the Collection Points and end Recipients. The aim to have more freelance Runners is to increase the efficiency and reduce cost of last mile delivery. Freelancers may also opt to operate parcel collection points (“Parkers Points”) and they will be referred to as Parkers (“Parkers”).
In the event of a missed delivery, the 3PL can deliver it to the nearest Parker Point instead of back to the 3PL warehouse. Thereafter, instructing the end recipient to collect it at the Parker Point which saves the need and cost for redelivery. Additionally, with parcel tracking information being distributed on Blockchain, Parkers would benefit from the adoption of LogisticsX as they will have overview real time parcel status detail, which might previously be an unknown to them.
3. LogisticsX Trustless Connect (Decentralised Logistics Network) – LogisticsX will develop Trustless Connect (“Trustless Connect”), a decentralised system that will allow for time stamping and real-time parcel location tracking. With the use of Blockchain, a tamper proof time-stamping system can be enforced, allowing questions like “Where is the Parcel?” or “Who last held the parcel?” to be answered with ease. In the event of any damages or disputes, the relevant stakeholders can also be easily traced and pointed out.
4. Collaboration with Blue Whale Foundation to Protect Interest of Freelance Logistics Personnel– One big challenge mentioned earlier is the poor treatment of freelance logistics personnel. LogisticsX will be partnering with Blue Whale Foundation (“Blue Whale”), a Blockchain network tailored for the self-employed, where independent workers can take part in sharing economy while obtaining employment benefits to solve this. As LogisticsX will be enlisting freelancers to perform duties as Parker and Runners, there would be a need for a fair, transparent and rewarding system to entice more involvement and contributions. Firstly, LogisticsX will be leveraging on Blue Whale Blockchain network to keep track of and rewards the various stakeholders. Secondly, a rewards system will be set-up to receive and disburses LogisticsX Tokens as the currency of the network. The entire system will be referred to as LogisticsX Ecosystem.
“We are delighted to be working together with Park N Parcel on this exciting project and thrilled that LogisticsX will leverage on the Blue Whale Contribution Activity Manager(CAM) to keep track of the rewards earned through stakeholder activities. We believe this will a very fruitful partnership and we look forward to making a positive impact on the last mile logistics industry with LogisticsX,” said Mr Hawon Chung, Chief Operating Officer & Co-Founder, Blue Whale Foundation.
Earlier this year, Blue Whale Foundation successfully raised SGD $30 Million during its ICO launch, with its public sale being completed within ten minutes from its opening. In addition, Blue Whale will be hosting the Blue Whale VIP Summit on 23 July 2018 with the Mayor of Seoul, Park Won-soon, in attendance. LogisticsX will also be present at the summit.
Over the last 2 years, Park N Parcel has been serving major stakeholders including international third-party logistics companies (e.g. Aramex, Singpost & Riverwood etc.) and E-commerce retailers (Carousell, Sgshop & Airfrov, etc.), which includes more than 30 E-commerce merchants and a community of 2,000 online sellers.
Park N Parcel has also previously received support from TRIVE (previously known as “TRi5 Ventures”), National University of Singapore Enterprise and group of angel investors from private equity and family offices. Their mentors include Golden Gate Ventures and DeClout Investments and are a member of the Sharing Economy Association Singapore.
Additionally, some of the awards Park N Parcel have won include, Bronze winner of SITF Awards 2017 for Best Innovative Infocomm Product (Digital Services) and the Grand Winner of Start Jerusalem Competition 2017 for Singapore. As fully-owned subsidiary of Park N Parcel, LogisticsX by PNP Logistics Network is yet another innovation from the team to answer to the global last-mile delivery challenges.
“Our vision at LogisticsX is simple, to reduce missed parcel delivery, increase parcel delivery efficiency and improve the livelihood of freelance logistics couriers. We are excited to partner Blue Whale and adopt Blockchain technology to transform the last-mile delivery industry globally. We look forward to LogisticsX to provide the platform that can help reduce mistakes, digitise information and increase in overall operational efficiency,” said Mr Tan Gan Hong, Chief Executive Officer of LogisitcsX .
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LogisticsX is a decentralised network with the vision of connecting many global logistics stakeholders including e-commerce retailers, third party logistics (“3PLs”), individuals managing Parker Point (“Parkers”), individuals couriers delivering parcels (“Runners”), parcel recipients into a multiparty trustless network.
Since its launch in 2017, Park N Parcel has successfully built a network of collection points with over 1500 Parkers islandwide in Singapore. The company is currently working with partners such as Carousell, Airfov, DHL and Aramex to prevent E-commerce platforms and logistics companies from facing re-delivery, making their delivery more efficient and cost saving.
Blue Whale will empower the world’s freelance community by creating the largest worker-centric decentralized ecosystem where independent workers can pursue their passions and get the value they deserve from the gig economy.