Smart Logistics and Freight Villages Initiative

The World Bank’s LPI 2018 ranks 160 countries on six dimensions of trade, which are recognized as important to development. The data in the ranking comes from a survey of logistics professionals who are interviewed about the foreign countries in which they operate. The components analyzed in the LPI are chosen based on recent theoretical and empirical research and on the practical experience of logistics professionals involved in international freight forwarding. The six dimensions are the Customs, Infrastructure, Ease of arranging shipments, Quality of logistics services, Tracking and tracing, and the Timeliness. The LPI uses statistical techniques to aggregate the data into a single indicator that is used for cross-country comparisons.
We will use the LPI framework to conduct a baseline survey. The targeted ScanMed- and NorthSea-Baltic corridors performance index is calculated from these indices. Another survey is conducted at a later stage in order to determine the effect of the project activities. Simultaneously, blockchain-based data is used to monitor the project activities effect from the baseline during pilot company participation. Corridors cannot be accurately measured because of the bottlenecks inherent within the structure of the corridors, i.e. train and ship timetables. Individual processes started after each transport order within the corridors can be enhanced, leading to improvements in the use of timetables.
We can simulate the blockhain data test results and extrapolate statistically valid models on how the change potential would be achieved in the near future, based on the measurements, analysis and experiences from the pilot companies.
Based on the understanding on the blockchain technology potential and the industry processes, and with the LPI 2018 indices, we project an 5% to 20% reduction in lead times in the corridors. The results will reflect the most accurate calulated lead time reduction achieved via the distributed network model.