The logistics industry faces several challenges in maintaining security, efficiency, and trust across complex global supply chains. As of 2024, the global logistics market is projected to reach $12.9 trillion by 2027.  

With such massive scale and growth, the need for robust, secure, and efficient systems to manage identities, credentials, and documentation has never been more critical. Verifiable credentials (VCs) can completely revolutionize how logistics companies handle identity verification, document management, and supply chain transparency.  

Several big logistics companies plan to implement verifiable credentials in the next few years, seeing their potential to streamline operations and enhance security. We have already explained the concept of verifiable credentials in another article, and you can check it here. 

Today, we will discuss the most common use cases for verifiable credentials for logistics companies and how they are beneficial for the industry. 

1. Instant Document Verification 

One of the most immediate and impactful applications of VCs in logistics is the instant verification of crucial documents. Traditional paper-based systems are prone to delays, errors, and fraud. Verifiable credentials offer a secure, digital alternative that can be authenticated in seconds. 

How It Works: One party can issue VCs for a shipment and the other party can instantly verify the shipment with instant verification. 

Benefits: 

• Cryptographic security makes forgery extremely difficult. 

• Instant verification speeds up the process for new employees, contractors, or partners. 

• Users control what information they share, revealing only necessary details. 

Example: Consider a shipment of perishable goods crossing multiple borders. With VCs, customs officials can instantly verify the authenticity of documents such as bills of lading, certificates of origin, and phytosanitary certificates. This drastically reduces processing times, ensuring that sensitive cargo reaches its destination in optimal condition. 

2. Supply Chain Transparency 

Verifiable credentials can significantly enhance supply chain transparency, allowing companies to track the provenance of products with unprecedented accuracy and trust. 

How it works: Each step in the supply chain is documented with a verifiable credential, creating a tamper-proof digital trail from origin to destination. 

Benefits: 

• Easily track products from source to consumer. 

• Reduce counterfeit goods in the supply chain. 

• Provide verifiable information about product origins and handling. 

Example: A luxury goods manufacturer uses verifiable credentials to document each stage of production and distribution. Retailers and consumers can scan a QR code on the product to view its entire journey, verifying its authenticity and ethical sourcing. 

Recent data shows that 78% of consumers are more likely to trust brands that offer transparent supply chain information, highlighting the importance of this use case. 

Read More: 6 Benefits of Supply Chain Transparency 

3. Customs Documentation 

Verifiable credentials can streamline the often complex and time-consuming process of customs documentation, reducing delays and enhancing security at borders. 

How it works: Customs authorities issue verifiable credentials for various trade documents, such as certificates of origin or import/export licenses. These digital credentials can be instantly verified by customs officials at any point in the journey. 

Benefits: 

• Reduce processing times at borders. 

• Eliminate the need for physical documents. 

• Decrease the risk of document forgery. 

Example: If an exporter presents a verifiable credential for a Certificate of Origin to customs officials. The authenticity is instantly verified, allowing for quicker processing and reducing the risk of delays due to document verification. 

4. Regulatory Compliance 

Ensuring compliance with various regulations is a constant challenge in logistics. Verifiable credentials offer a more efficient and reliable way to manage and demonstrate compliance. 

How it works: Regulatory bodies or authorized entities issue verifiable credentials that confirm compliance with specific regulations. These can be easily updated and revoked if necessary. 

Benefits: 

• Instantly verify current compliance status. 

• Easily demonstrate compliance history. 

• Quickly identify and address non-compliance issues. 

Example: A pharmaceutical logistics company can use verifiable credentials to manage compliance with the Drug Supply Chain Security Act (DSCSA). Each shipment carries a verifiable credential that confirms compliance, allowing for instant verification at any point in the supply chain. 

5. Access Credentialing 

Controlling access to sensitive areas or information is crucial in logistics. Verifiable credentials provide a secure and flexible solution for managing access rights. 

How it works: Companies issue verifiable credentials that grant specific access rights to individuals. These can be easily updated or revoked as needed. 

Benefits: 

• Easily adjust access rights in real time. 

• Reduce the risk of unauthorized access. 

• Centralize control over access rights across multiple locations or systems. 

Example: A logistics company can use VCs to manage access to its warehouses and IT systems. Employees and contractors present their credentials to gain entry, with access rights automatically adjusted based on their current role and clearance level. 

6. Employment Verification 

Verifying employment history and qualifications is a critical part of hiring and contracting in logistics. Verifiable credentials streamline this process, making it faster and more reliable. 

How it works: Previous employers and educational institutions issue verifiable credentials confirming an individual’s work history and qualifications. These can be instantly verified by potential employers. 

Benefits: 

• Reduce time spent on background checks. 

• Eliminate risks associated with falsified resumes. 

• Allow candidates to share only relevant information. 

Example: In a scenario, a logistics company is hiring a new supply chain manager. The candidate presents verifiable credentials from previous employers and universities, allowing the company to verify their work history and qualifications instantly. 

7. Product Compliance Verification 

Ensuring that products meet various standards and regulations is crucial in logistics. Verifiable credentials offer a reliable way to confirm and demonstrate product compliance. 

How it works: Certification bodies issue verifiable credentials confirming that products meet specific standards or regulations. These can be easily verified at any point in the supply chain. 

Benefits: 

• Quickly verify compliance during audits or inspections. 

• Provide easily verifiable proof of product standards. 

• Ensure all products meet necessary regulations. 

Example: A food logistics company can verifiable credentials to confirm that all products meet organic certification standards. These credentials can be instantly verified by retailers or consumers, ensuring trust in the product’s organic status. 

8. Digital Twin Implementation 

Digital twins are becoming increasingly important in logistics for tracking and managing physical assets. Verifiable credentials can enhance the security and reliability of digital twin data. 

How it works: Verifiable credentials are used to authenticate and secure the data flowing between physical assets and their digital twins, ensuring the integrity of the information. 

Benefits: 

• Ensure that digital twin data accurately reflects the physical asset. 

• Protect against unauthorized data manipulation. 

• Build confidence in digital twin-based decision-making. 

Example: If a logistics company uses digital twins to monitor and manage its fleet of delivery vehicles. Verifiable credentials ensure that all data transmitted from the vehicles to their digital twins is authentic and tamper-proof, allowing for more reliable predictive maintenance and route optimization. 

9. Real-Time Inventory Management 

Accurate and real-time inventory management is crucial for efficient logistics operations. Verifiable credentials can enhance the reliability and security of inventory data. 

How it works: Verifiable credentials are used to authenticate inventory updates and transactions, creating a secure and auditable trail of inventory movements. 

Benefits: 

• Reduce errors in inventory tracking. 

• Protect against inventory fraud or manipulation. 

• Provide a clear audit trail of inventory movements. 

Example: Suppose a large warehouse uses verifiable credentials to track inventory movements. Each time an item is moved or its status changes, a verifiable credential is created, ensuring an accurate and tamper-proof record of inventory status. 

10. Trusted Partnership Establishment 

Building trust between partners in the logistics industry is crucial for efficient operations. Verifiable credentials offer a secure and efficient way to establish and maintain trusted partnerships. 

How it works: Companies issue verifiable credentials to trusted partners, confirming their status and specific rights or privileges within the partnership. 

Benefits: 

• Quickly establish trust with new partners. 

• Easily adjust partner privileges as relationships evolve. 

• Reduce the risk of unauthorized access or actions by partners. 

Example: When a global logistics company uses verifiable credentials to manage its network of local delivery partners, each partner receives a credential confirming their status and specific rights, which can be instantly verified and updated as needed. 

11. End-to-End Visibility 

Achieving true end-to-end visibility in the supply chain is a major challenge for logistics companies. Verifiable credentials can significantly enhance transparency and traceability throughout the entire logistics process. 

How it works: VCs are issued at each key point in the supply chain, creating a secure and verifiable record of a product’s journey from manufacturer to end consumer. 

Benefits: 

• Track products through every stage of the supply chain. 

• Provide verifiable information to stakeholders and consumers. 

• Quickly identify and address issues in the supply chain. 

Example: If a global electronics manufacturer uses VCs to track its products from production to retail sale. Each step in the process, including manufacturing, shipping, customs clearance, and retail delivery, is documented with a verifiable credential, allowing for complete visibility and traceability. 

12. Fraud Prevention 

Fraud remains a significant concern in the logistics industry, with potential impacts on finances, reputation, and operational efficiency. Verifiable credentials offer a powerful tool for preventing various types of fraud. 

How it works: By using cryptographically secure verifiable credentials for key documents, identities, and transactions, logistics companies can significantly reduce the risk of fraud. 

Benefits: 

• Prevent fraudulent transactions and claims. 

• Build trust with partners and customers. 

• Reduce time and resources spent on fraud detection and resolution. 

Example: Suppose a logistics company implements VCs for all shipping documents and transactions. This prevents the use of fraudulent documentation for theft or misdirection of goods, significantly reducing losses due to fraud. 

Also Read: Prevent Credential Fraud with EveryCRED’s Blockchain Technology

13. Sustainable Practices Verification 

As sustainability becomes increasingly important in logistics, verifying sustainable practices throughout the supply chain is crucial. Verifiable credentials offer a reliable way to confirm and demonstrate adherence to sustainability standards. 

How it works: Sustainability certification bodies issue verifiable credentials confirming compliance with specific environmental or ethical standards. These can be verified at any point in the supply chain. 

Benefits: 

• Provide verifiable proof of sustainable practices. 

• Allow stakeholders to easily check sustainability claims. 

• Streamline the process of demonstrating adherence to sustainability standards. 

For Example, a logistics company specializing in eco-friendly transportation can use verifiable credentials to confirm its carbon-neutral status. These credentials can be easily verified by clients and partners, demonstrating the company’s commitment to sustainability. 

Final Words 

For logistics companies looking to transform their business operations, implementing verifiable credentials is a revolutionary solution. If you are ready to transform your logistics operations with the power of VCs, EveryCRED provides customized verifiable credential solutions for the logistics industry. Our platform provides seamless integration of VCs into your existing systems. 

Don’t let your company fall behind in the digital transformation of logistics. Contact EveryCRED to learn how our verifiable credentials solutions can revolutionize your operations, enhance security, and build unshakeable trust with your partners and customers.