Despite widespread claims by government officials that looming logistical mayhem at the UK border as a result of the country’s decision to leave the European Union would be solved by indeterminate technological solutions, none has yet materialized.
It seems somehow fitting that researchers from the University of Surrey believe that a technology that has largely been bereft of a practical application might fit the bill. In a recent study, they make the case for a blockchain-based solution, which they believe could improve the efficiency of supply chains and the development of trust at the border.
Building trust
The solution proposed by the researchers is an RFIT platform, with data linked together and unalterable. They believe that the end-to-end visibility of the data would help to build trust between the various partners across the supply chain.
“Since the UK’s withdrawal from the EU Customs Union, businesses have faced increased paperwork, border delays, and higher costs,” the researchers say. “A digitally managed border system that identifies trusted shipments appears an obvious solution, but we needed to define what trust actually means and how a digital system can help.”
“Supply chain participants have long recognized the importance of trust in business relationships. Trust is the primary reason companies cite when supply chain relationships break down, which is especially true at customs borders. Current supply chain friction at UK borders is replicated across the world. Delay is caused by a lack of trust in goods flows, and hence a need to inspect.”
Moderate expectations
It is perhaps worth noting that the researchers are moderate in their expectations for the platform and accept that even were it to be introduced, it wouldn’t remove the need for mechanisms to establish trust between buyers and sellers. They note that it’s vital that the platform providers continue to act in a way that builds such trust.
The authors explain that the UK government is looking at various technological solutions as part of its 2025 UK Border Strategy, but as yet none have really materialized. They are moderately confident that blockchain could play such a role, however.
“The broader findings from the case study are influencing the UK Government on how to address the current challenges with supply chains at UK customs borders,” they conclude. We hope our work will also influence the Government’s current focus on trust ecosystems, as part of the single trade window (STW) initiative.”
“We truly believe that the use of this innovative digital technology will form the Government’s first step in developing a utility trade platform, encouraging broader digitization of our borders.”
