Second Application: FoodGuardians (www.foodguardians.ch)
FoodGuardians offers the next generation of reusable containers and boxes for regional and global transport of temperature sensitive food products. The combination of patented cooling technology, cutting-edge insulation and blockchain infrastructure allows us to preserve a product’s freshness and traceability.
Our vision is to allow your local butcher to order your favorite steak directly from the producing farm and send it straight to your barbecue.
This second division of Smart Containers Group:
• has been founded and is up and running with inital investments secured.
• has secured feasability approval for defined cost and technological attributes.
• is negotiating partnerships with major players in the field for a rapid route to market.
• has initial customers already in negotiation.
Route to market:
• Business-to-Business (phase 1): Focus on palletized high value niche food (i.e. fish, chocolate, wine).
• Business-to-Consumer (phase 2): Regional distribution through a medium sized box that can be used for:
• direct to home delivery for online retailers
• supermarkets offering home delivery
• distribution of high value temperature-sensitive products to restaurants and hotels (i.e. fish, meat, patisserie, delicacies)
Achievement of the next three years
Blockchain integration: Today, SkyCell and future FoodGuardians containers are tracked and
traced around the world by multiple gateways that send data to our
centralized database built on parts of blockchain technology. Every
container is equipped with a multitude of sensors that deliver the most
precise data on temperature, humidity and location. This system has
a proven track record and allows us to provide unparalleled services
to our clients, making SkyCell containers the safest pharma containers
worldwide, with temperature deviation results 75x better than the
industry average. With blockchain technology becoming more and more accessible and
its increasing acceptance in the very conservative logistics field, we
decided to rethink our IT infrastructure and determine whether this
new technology could help improve our business model earlier than
expected.
About 12 months ago, we concluded that blockchain offered a significant
potential to reduce cost and scale our business. Since then
we have been running tests and pilot projects to explore the technical
feasibility of this idea. We will share our findings below:
1. Management of paper and email flood to ship own assets:
the LOGI CHAIN
As an established company in the logistics space, we are extremely
well-placed to become the global standard in the logistics industry.
Today, we track and trace our containers through various sensors and
gateways. This data is then stored and analyzed in a central database
with a technology very close to a centralized blockchain. Even today,
SkyCell already gathers 5 m data points per months.
The most inefficient part in logistics is the need for up to 200 documents
and non-integrated manual email communications for each
shipment. This requires a huge amount of manual intervention, which
is costly and time consuming (see more details on pp. 12-14). In fact,
it is more expensive to admininstrate a shipment than to effectively
ship it.
We see an opportunity to move the paper trail of the container onto blockchains. The publicly accessible parts of this record on a public
blockchain like Ethereum, while private documents will be placed on a
permissoned blockchain like Fabric from the Hyperledger Foundation.
Stakeholders in a shipment will then get access to the relevant documents
through an online reader and be able to process the relevant
actions. We have not yet decided, which blockchain infrastructure will
be the most relevant for this project. Many of them have already approached
us, since we are the first logistics use case and therefore an
interesting projects for all of them.
We quickly realized that this plan will only work, once a large portion
of industry players have integrated the same process. This means the
LOGI CHAIN needs to become an independent ecosystem, managed
by a neutral foundation. Therefore, we have decided to build the
LOGI CHAIN Foundation and assemble a board of credible industry
experts to manage the LOGI CHAIN economics, including its payment
tool, the LOGI token. Smart Containers Group will be a member of the
foundation board, but will submit to the decisions of the foundation
council, ensuring an impartial position is maintained.
2. Payment in cryptocurrencies to increase payment security
and reduce fees
Today the container administration is done “manually”. This means
one of our operation’s pool employees checks each containers position,
invoicing the client on a case-by-case basis and then arranging for
the asset to be revovered. This is a cost- and time-intensive process.
Example: SkyCell rents out a container for a shipment from
Hyderabad, India to London in the UK. The lease fee is quoted at
USD 3’000. However, the shipment is delayed and additional fees of
USD 1’000 are accrued. After our operations team member changes
the quote and sends an invoice, the payment arrives 6 weeks later
and 5% of the amount is deducted for banking transfer fees out of
India. This is costly, inefficient and needs improvement, especially as
the number of our shipments increase.
Currently, our container sensors already “know” when a shipment has
arrived at its destination and when its contents have been unloaded.
Our vision is to integrate smart contracts in this process and automate
the whole invoicing and payment process in this way. Payments will
be executed instantaneously when the container is unloaded through
cryptocurrency payments, reducing the fees and their transmission
time to a minimum. As of January 2018, SkyCell has announced it will accept payments
for its container leasing in bitcoin and ether. We plan to accomplish
the next steps in the process within 12-18 months.
Telegram: https://t.me/smartcontainers
Website: https://smartcontainers.ch/
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