How dKargo can be used?
Tags: Article, Dka, Logistics, Blockchain, Dkargo

In our previous article, we looked into our initial core partner ‘deleo’ and how it could synergize with dKargo. This time, let’s find out how the advantages of using dKargo could be utilized in our daily lives.

Existing logistics market couldn’t satisfy our various needs

The need for more flexible delivery service is growing as the e-commerce industry continues to boom providing goods that meet the customers’ varying needs. Some want to get hands-on the product in the following morning regardless of the fee being charged while some others just want the best deal for the fee with bearing the delivery made rather later. Now is the time that the logistics industry needs to evolve from just being a simple delivery service to a service that could be customized to the customers’ needs.

However, most of the existing delivery service providers are stuck with the real problem called ‘costs’. Changing the existing service would incur too much a cost for the companies to endure, Reducing the cost would eventually lower the quality of the service that wouldn’t be appropriate for the customers’ needs.

Average pricing started to rise recently

Amazon in the US and Coupang in Korea is establishing the so-called ‘Fulfillment’ system through 2PL or 3PL in order to address the problems. But instead, the system turns out to be not the most efficient solution but causing bleeding cutthroat competition between businesses. Even if the services fit themselves to varying customer's needs, then even bigger inefficiency could rise not fully utilizing the system previously established.

The same goes for cross-border logistics and delivery. Cooperation between the companies is virtually impossible due to the variables such as country-specific logistics data handling methods, limited data sharing, the difference in the logistics system, and so on. A new system is required to be able to accommodate and coordinate these factors, and it costs an enormous amount of money.

It means that a flexible network could reduce costs, reflect user needs, and reconnect companies relevant to the logistics that currently stay separated.

What does dKargo have on the table?

dKargo uses blockchain technology to bring innovation to the existing logistics services. Through blockchain, dKargo could establish a trustworthy network between logistics businesses and provide transparent logistic data.

All data is provided by dKargo is sourced from the participating companies’ actual operations. The participants would voluntarily join the ecosystem thanks to dKargo’s incentive system.

Let’s imagine an instance where dKargo is implemented in the network. Suppose that dKargo platform user “A” living in Seoul is sending a parcel to “B”, who is in Busan. At first, “A” ships the parcel by the delivery service provider “Y” which was recommended by dKargo platform. Then “Y” moves the parcel to the hub located in Daejeon. The parcel is then moved to Busan by cargo truck of “Y” heading to Busan from Daejeon hub. When “Y” has no more available truck to make the delivery to Busan, dKargo analyzes the current logistic status of the network and search for the availability from other service providers, which is in this instance, “Z”. Finally, the parcel from Seoul can make for “B” in Busan by cargo truck of “Z” which had enough capacity to finish the delivery.

dKargo provides the best optimal routes and processes for the deliveries that account for the time and place of both users and network participants. Both the users and service providers win in the network, fast delivery for the users, and more efficient without unnecessary competition for the providers. Also, all the data produced and derived are recorded and accumulates continuously in the dKargo network, further activates dKargo ecosystem and other services that add value.