PwC’s Blockchain Tool To Improve Australia’s Supply Chain
The Australian Chamber of Commerce and Industry, PwC Australia, and the Port of Brisbane have collaborated to build a blockchain based supply chain management system that will simplify international trade process. Australia derives a major portion of its export revenue from commodities. Therefore, an efficient international supply chain is required to keep the economy growing at a brisk pace.
Over the past decade, the steep increase in the trade volume has put pressure on supply chains, customs and border authorities to screen, process and clear goods efficiently.
Approximately 9 million container moves in and out of five major Australian ports annually. The figure is expected to increase to 15 million by 2025. According to Bryan Clark, Australian Chamber, Director of Trade and International Affairs, “the current inefficiency across Australian supply chains have added to the cost of doing business, creating up to $450 in excess cost. This doesn’t just represent in excess of $1bn in value lost, but goes to the heart of Australian commodity trade viability when it gets priced out of the competitive global market.”
According to Ben Lannan, PwC Partner, the release of the Proof-of-Concept for the system, dubbed “Trade Community System”, is the first step towards building an innovative end-to-end supply chain that will “digitize the flow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses.”
While launching a proof of concept Trade Community System digital application in Brisbane Port of Brisbane CEO, Roy Cummins said
“To drive new efficiency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector.”
Cummin has stressed the need to look beyond Australia’s ports to improve Australia’s trade competitiveness. He said that port (sea or air) is the first and final point of domestic contact in the international supply chain It is also the primary point at which all the important supply chain participants come together. The Trade Community System will implement suggestions provided in the National Freight and Supply Chain Priorities Report.
Roy Cummins said
“It is the right time for industry to initiate a reform and modernisation agenda which will shift the dial for Australia’s international business.”