- As part of the digitalization initiative to offset the challenges that arise from the interruption of the transport of fruits and vegetables, TLIP has joined RESULD.
- TLIP would enable RESULD to leverage the immutable record and traceability of IOTA to achieve this mission.聽
Trade and Logistics Information Pipeline (TLIP) has officially announced that it will be participating in Responsible Supply Chains and Logistics Due Diligence (RESULD) to offset the challenges that arise from paper-based cross-border processes.
According to the report, the end-to-end fruit and vegetable supply chains between countries like Kenya, the Netherlands, and the United Kingdom would be digitized to eliminate these hurdles. TLIP’s decision to join RESULD could support the collaboration between all the participants involved in the supply chain.聽
Over the years, concerns have been raised over the additional costs incurred from the interruption of transportation of fruits and vegetables. According to a 2023 report by the Global Coalition of Fresh Produce, the lack of digitalization is a huge gap in the industry.
This situation is exacerbated by a lack of digital integration among the various actors in the supply chain, including carriers, port authorities, port services providers, trucking and railroad firms, warehousing and forwarding firms, importers, and exporters. This lack of communication leads to compounded delays and increased costs.
The decision of RESULD to resort to digitalization to improve fruit and vegetable trade would, according to the report, enhance product quality while focusing on the ESG standards through self-imposed measures within the supply chains.聽
TLIP to Make a Huge Contribution to RESULD
TLIP is known for providing great potential for enhancing efficiency while reducing trade barriers. This is done by enabling data exchange directly from the source. It is important to note that TLIP is built on the IOTA digital ledger technology.
Leveraging its enviable features would ensure that RESULD takes advantage of the immutable record and the comprehensive traceability important for the digital end-to-end supply chain. IOTA’s contribution to global trade cannot be overlooked as it recently signed a collaboration agreement with key players to revolutionize the industry as formerly reported by Crypto Key News.
This also aligns with a recent publication by CNF that IOTA specifically launched TLIP to merge private and public sectors as part of the bid to facilitate a paperless international trade.聽
According to Aljiosa Beije, Chief Technical Officer of Docklab, TLIP is very important for the entire process of RESULD.聽
TLIP is a key component of RESULD鈥檚 vision of a truly digital end-to-end supply chain solution. Not only from a technical perspective but also in terms of its ecosystem.
Currently, the digital exchange of trade data between systems is still in the early stage, as external data exchange mostly relies on paper-based documents like PDFs. However, the full digitalization and the current initiatives by RESULD would drastically improve the entire process as confirmed by research. According to a study by the OECD, digital connectivity reduces global trade costs by 1%. It also increases digital connectivity by 1% in addition to a 0.1% reduction in cost. As stated in a TLIP’s report on Medium, legislation is advancing digitalization.聽
For example, the UK鈥檚 Electronic Trade Documents Act from September 2023 permits the digital transfer of ownership of trade documents. By acknowledging electronic trade documents as equivalent to paper ones, the Act opens up avenues for innovation, especially in sustainability. The Carbon Border Adjustment Mechanism (CBAM), initiated in 2023, obliges companies importing into the EU to disclose and validate emissions in their supply chains.
RESULD is reported to be drawing insight from previous digitalization initiatives including the projects by TKI-Dinalog, and the Ecosystem of Trust pilots by a consortium led by the UK Institute of Export & International Trade.
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