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Blockchain for Post and Parcel: Incremental Change or Exponential Difference

Imagine a world with seamless end-to-end global trade, instant identification validation and digitized package verification. Blockchain has the potential to drive profound positive change for the post and parcel industry.

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Blockchain for Post and Parcel: Incremental Change or Exponential Difference

  1. 1. Accenture Post and Parcel Industry Research 2018 BLOCKCHAINFOR POST&PARCEL Incremental Change or Exponential Difference
  2. 2. Copyright © 2018 Accenture. All rights reserved. 2 IMAGINE AWORLDWITH… SEAMLESS END-TO-END GLOBAL TRADE: streamlined cross-border post and parcel transactions with integrated tracking, payments and customs, to enable traceable and auditable transactions. INSTANT IDENTIFICATION VALIDATION: biometrically-verified identity information for a range of government and commercial services. DIGITIZED PACKAGE VERIFICATION: customs officials could digitally verify package details such as origin, physical characteristics, licensing, authenticity, destination and journey, removing need for intermediaries Blockchain has the potential to drive profound, positive change. 30% Recent Accenture research found that blockchain could deliver savings of more than across the middle and back office.
  3. 3. Copyright © 2018 Accenture. All rights reserved. 3 WHAT IS BLOCKCHAIN? Blockchain is a distributed ledger technology for securely transmitting any type of information without the control of any central authority. BLOCKCHAINTODAY TRADITIONAL DATABASES RECONCILE MESSAGING RECONCILE MESSAGING RECONCILE MESSAGING RECONCILE MESSAGING TRUST
  4. 4. Copyright © 2018 Accenture. All rights reserved. 4 Drive Positive and Profound Change for the Post and Parcel Industry TRANSPARENCY Stakeholders receive controlled access to a shared dataset. TRUST Transactions are cryptographically signed to increase trust and ensure against hacking, data manipulation, and data compromise. TRACEABILITY Blockchain acts as a single source of truth by multiple parties. KEYBLOCKCHAIN FEATURES
  5. 5. BLOCKCHAIN APPLIED IN POST AND PARCEL
  6. 6. Copyright © 2018 Accenture. All rights reserved. 6 THE KEY BENEFITS OF BLOCKCHAIN ARE PARTICULARLY APPLICABLE TO LOGISTICS AND IDENTITY MANAGEMENT Faster & leaner logistics in global trade Improving transparency & traceability in supply chains Automating commercial process in logistics with smart contracts Supply Chain/Logistics Individual identity verification and management Third-party identity assurance management Known sender/receiver identity management Identity Management
  7. 7. Copyright © 2018 Accenture. All rights reserved. 7 SUPPLY CHAIN Highly complex processes, diverse stakeholder groups and multiple third parties make supply chain a suitable candidate for blockchain AUTOMATE PROCESSES Using smart contracts to automate manual processes, enabling faster and traceable transactions. TRACK PRODUCTS Track origins and travel route to authenticate provenance. DIRECT TRANSACTIONS Third-party stakeholders are removed from the process and transactions are completed directly. IMPROVE EFFICIENCY Reducing bureaucracy and paperwork in global cross-border trade.
  8. 8. Copyright © 2018 Accenture. All rights reserved. 8 CROSS BORDER SUPPLY CHAIN The delivering organization would post the number of items delivered to the border, and the weight and cost of each. The receiving organization would post the number of items received at the border and the weight and cost of each. The common data set governed by the blockchain could greatly simplify and accelerate the reconciliation process. Blockchain can streamline the reconciliation of manifests and the associated billing and payment processes 2. post received 1. post sent 3. reconciliation BORDER BLOCKCHAIN 4. settlement
  9. 9. Copyright © 2018 Accenture. All rights reserved. 9 IDENTITY MANAGEMENT Blockchain can transform the validation and management of identities The association of a person to a place of residence is one of the most important individual attestations for verifying identity. Post and parcel organizations can use data from their mail stream to create these attestations and, because of this significant role, also host these distributed identity solutions. Over time, postal workers could strengthen the accuracy of attestations by making house visits to verify information and potentially augment them with biometric and other individually collected data. The Decentralized Identity Foundation is building an open source decentralized identity ecosystem on a blockchain foundation.
  10. 10. Copyright © 2018 Accenture. All rights reserved. 10 INFORMATION MANAGEMENT Blockchain acts as a simple and secure mechanism to transfer any information asset Interfaces and data exchanges between post and parcel organizations and others are critical, but they can be costly to maintain. Blockchain can make the exchange of information simpler, safer and more transparent while also reducing costs. VALUE TRANSFER SHARED DATA TWO PRIMARY MODES OF BLOCKCHAIN RECONCILEMESSAGING Sender Receiver Value transferred Mutualized Data RECONCILEMESSAGINGValue transferred
  11. 11. WHAT TO DO NEXT
  12. 12. Copyright © 2018 Accenture. All rights reserved. 12 LEARN BY DOING build critical skills and insights by conducting pilots UNDERSTAND THE ECOSYSTEM by developing insight into the blockchain supply chain and associated organizations SET A BLOCKCHAIN STRATEGY that demonstrates how blockchain can help the organization achieve its vision THE POST AND PARCEL OPPORTUNITY THENEEDTOACTNOW
  13. 13. Copyright © 2018 Accenture. All rights reserved. 13 LEARN BY DOING 1 2 Find the right use case and begin to experiment. Use pilots to learn and build blockchain knowledge and capabilities. SIMPLIFIED BLOCKCHAIN DECISION TREE Is there a need for a shared common database? Are multiple parties involved? Do the parties involved have conflicting incentives and/or mistrust each other? Are there differences in the rules that govern these parties? Is there a need for an objective, unchangeable log of records? Do the rules behind transactions rarely change? Suitable use case for blockchain Re-evaluate need for blockchain 1 2 3 4 5 6 Yes No
  14. 14. Copyright © 2018 Accenture. All rights reserved. 14 UNDERSTAND THE ECOSYSTEM BLOCKCHAIN SUPPLY CHAIN Public Blockchain Identity and Authentication Private Blockchain Providers Data Records Sidechains Software Development Storage Identity Services, KYC/AML Several organizations exist in each element of the blockchain supply chain. Understanding the ecosystem and how to work with those organizations will be the key to finding the right path to value.
  15. 15. Copyright © 2018 Accenture. All rights reserved. 14 GOVERNANCE Building blocks of a holistic blockchain strategy FIT ASSESSMENT TRAINING & DEVELOPMENT TECHNICAL SKILLS TECHNOLOGY ACQUISITION SET A BLOCKCHAIN STRATEGY CULTURE
  16. 16. Copyright © 2018 Accenture. All rights reserved. 16 Entirely REDESIGNED PROCESSES Whole new BUSINESS MODELS Tremendous EFFICIENCY GAINS THEPOST ANDPARCEL OPPORTUNITY SUMMARY Now is the time to experiment, learn and lay the groundwork for fundamentally different blockchain-enabled operations New MONETIZATION OPPORTUNITIES Blockchain has the potential to drive profound industry change
  17. 17. CONTACT US BRODY BUHLER Global managing director Accenture post and parcel industry group robert.b.buhler@accenture.com ANDRE PHARAND Principal director and global management consulting lead Accenture post and parcel industry group andre.pharand@accenture.com Brody Buhler @brodybuhler Andre Pharand @andre_pharand ABOUT ACCENTURE Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 459,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
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