Despite the increasing interest in digital commerce and products, the emergence of digitalization in the logistics and supply chain sectors continues to receive little attention, particularly from organizational theorists.
In response, XLOG, the Filipino developed fully integrated blockchain-based end-to-end shipping and logistics platform owned by Shiptek Solutions Corp., taking an institutionalist view, believing the emergence and adoption of digitalization is a socially constructed phenomenon.
"The current or traditional way of doing logistics, especially in the mid-mile, is inefficient and disorderly, riddled with a lot of manual processes which are prone to mistakes and delays," stated Eric John Vitug, sales and marketing head at Shiptek.
According to Vitug, the logistics industry needs to take advantage of technological advancements to speed up their processes and reduce mistakes by minimizing the manual steps required for each transaction. "This is where XLOG comes in!" he added.
XLOG is a blockchain-enabled innovative approach to logistics that enables the industry to manage and monitor their transactions online and leverage the provenance of data that improves the processing of transactions between operations and finance. It directly connects shipping companies and truck owners to shippers, customs brokers, and freight forwarders.
It offers solutions, not just for shipping lines, but all companies engaged in the supply chain that will allow their businesses to go digital immediately while boosting their cash flow through embedded financial services offered within the platform without making a significant financial investment.
Embedded financial services are when banks can incorporate financial services seamlessly into the activities and the experiences that truly matter to individuals and businesses.
An example of this application is the partnership between Union Bank of the Philippines and XLOG to provide "anchor financing" powered by blockchain to offer a seamless trading solution in the logistics space while eliminating the risk of bogus transactions.
XLOG has recently started the Cebu-based shipping company Gothong Southern Shipping Lines Incorporated’s (GSS) onboarding process, led by the company’s Chief Operating Officer Mr. Rex V. Yuvienco. The onboarding process involves training both the shipping company and their customers on using XLOG's platform to familiarize themselves with the system and maximize its full potential.
Digitalization is key to GSS’s foray into expanding its portfolio and ensuring excellence in operational efficiency. XLOG will be a major catalyst in this endeavor. Freight forwarding (which includes Full Container/Less Container Load, Breakbulk, Rolling Cargoes) and Trucking are the primary services of the company and their presence in XLOG will ensure customers will have valuable options.
XLOG makes it possible for new GSS customers to experience seamless transactions through its Booking Portal - a more efficient way of capturing shipping requirements digitally while providing instant schedule availability and rate quotation. Also, customers will have the ability to Track and Trace their cargo as they can monitor GSS vessels’ location at sea.
"XLOGPAY - generate invoices digitally and boost cash flow through embedded financial services that offer early payment collection; online payment and finance management - monitor and settle transactions online with XLOG's e-invoice generation, finance management, and online payment options integrated with banks or payment partners; and APE / EDI integration - integrate with existing systems for a more seamless digital experience."
However, XLOG is looking to onboard as many shipping lines as possible across the country and overseas, with Vitug confident the company could provide platform customization if required. "XLOG also offers API / EDI integration for a seamless digital experience," he reiterated.
"We have other shipping line-related services in the pipeline as we speak, which we plan to launch in Q4 or Q1 of next year," he went on to say.
Shiptek Chief Operating Officer Jose Emmanuel Ynion added that digitization of current shipping and logistics operation processes is another area ripe for transformation. Legacy operations that involve manually placing phone calls and faxes to generate shipment orders are both inefficient and lack visibility in tracking shipments' progress.
Digitization, Ynion said, provides more granular real-time data that enables the wave of new freight forwarding platform companies that are aiming to streamline the shipping process."
"Another inherent challenge in providing digital solutions is the readiness of the supporting infrastructure," he said. Again, this is an area where shipping lines can harness XLOG's expertise.
In all, XLOG offers a variety of services for the shipping industry to provide them the following advantages:
• Increase overall efficiency rate.
• Reduce error-prone manual processes.
• Digitize instantly and cost-efficiently.
• Improve overall customer experience.
• Manage transactions and services whenever and wherever.