PYMNTS-MonitorEdge-May-2024

OpenPort Stores Logistics Data On Fr8 Network Blockchain For Faster Supplier Payments

Logistics technology provider OpenPort has announced a partnership with blockchain company Fr8 Network in a deal that will enable OpenPort to connect its customers to blockchain solutions.

Reports in CryptoNinjas on Tuesday (Aug. 7) said Fr8 Network revealed the partnership in a white paper that explained how it can use blockchain to enhance existing logistics operations for OpenPort customers, which include top names like PepsiCo and Unilever. Their collaboration aims to use blockchain to provide proof of delivery, improving the visibility and control over in-transit shipments as they move across supply chains.

That proof is key to releasing payments to suppliers, as well as supporting financing of various members in the supply chain.

OpenPort currently provides transportation management technology and trade finance to its corporate customers. When it first launched, according to reports, the company targeted developing markets. Last year, the firm rolled out its electronic Proof-of-Delivery (ePOD) tool, and offers freight drivers a micro-incentive to encourage the use of smartphones to verify delivery. Drivers can receive those micro-incentives in the form of Fr8 Network’s proprietary currency, FR8 Token.

Through its partnership with Fr8 Network, OpenPort’s ePOD data is stored on blockchain, reports said.

The technologies can provide banks with proof of delivery data to support financing to members in the supply chain, enhancing OpenPort’s trade finance offering as well.

“We are thrilled to have OpenPort, a leader in digital innovation for logistics, join the Fr8 Network,” the firm’s co-founder and tech lead, Sloane Brakeville, said in a statement. “Their existing enterprise customers will drive significant platform adoption of the Fr8 Protocol. As early participants, OpenPort will be influential in collaborating on Fr8 Protocol’s development roadmap.”

“OpenPort is using decentralized ledger technology, including the Fr8 Protocol, to deploy irrefutable confirmation of goods delivery across enterprise supply chains in emerging Asia,” added OpenPort CEO Max Ward. “Whereas supply chain finance on paper-based model takes weeks to process at high costs of capital, with the help of our partners, we can now pay suppliers in days.”

PYMNTS-MonitorEdge-May-2024