Samsung Mulls Blockchain Supply Network

A blockchain ledger system could reduce shipping costs by up to 20%.

by Kalina Tekelieva
18 April • 2.5 min
In News

South Korean giant Samsung Electronics Co. is considering the use of blockchain technology to manage its global supply network, a company blockchain director told Bloomberg on April 16.

If introduced, the blockchain-based system will keep track of Samsung’s global shipments worth tens of billions of US dollars annually and could be able to cut shipping costs by 20%, Song Kwang-woo, blockchain chief and vice president of the group’s IT arm Samsung SDS, told Bloomberg.


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SDS will be the unit responsible for developing the new system for Samsung Electronics.

Song did not mention a potential launch date, but highlighted that blockchain tech is a core platform in Samsung’s digital transformation.

Supply networks and blockchain

In his interview with Bloomberg, Song assured that blockchain will have an “enormous impact on the supply chains of manufacturing industries”. Looking at the shipping sector, it becomes clear that Samsung’s director is not alone in seeing merits in blockchain technology.


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In January, Danish shipping conglomerate A.P. Moeller-Maersk and US software giant IBM teamed up to set up a joint venture which will use blockchain technology to simplify the movement of goods around the globe and make it more transparent.

According to the two companies, the costs for the processing of trade documentation account for up to a fifth of the overall costs to transport goods. Blockchain will establish a shared record of all industry transactions where multiple trading partners can collaborate, Maersk and IBM said.

Blockchain in the Samsung context

If Samsung’s plans to rely on blockchain tech for its global supply chain are executed, the Korean company will manage to cut the time between the product launch and its shipment, Bloomberg wrote. As a result, Samsung will more easily respond to rival products and changing consumer interests in emerging markets, such as China, Cheong Tae-su, professor of industrial engineering at Korea University in Seoul, was quoted as saying.