In an effort to address the challenges posed by the disruption of the transportation of fruits and vegetables, TLIP has partnered with RESULD as part of its digitalization initiative. TLIP aims to utilize the secure and transparent record provided by IOTA to achieve this goal.
Trade and Logistics Information Pipeline (TLIP) has made an official announcement regarding its participation in Responsible Supply Chains and Logistics Due Diligence (RESULD) to overcome the obstacles caused by paper-based cross-border processes. The digitization of end-to-end supply chains for fruits and vegetables between countries such as Kenya, the Netherlands, and the United Kingdom will eliminate these challenges. TLIP’s decision to join RESULD will facilitate collaboration among all participants in the supply chain.
Over time, concerns have been raised about the additional costs incurred due to disruptions in the transportation of fruits and vegetables. The Global Coalition of Fresh Produce’s report in 2023 highlighted the lack of digitalization as a significant gap in the industry. This issue is further compounded by the lack of digital integration among various actors in the supply chain, including carriers, port authorities, service providers, trucking and railroad companies, warehousing and forwarding firms, importers, and exporters. The lack of communication leads to delays and increased costs.
RESULD’s decision to embrace digitalization in order to enhance fruit and vegetable trade will improve product quality and focus on environmental, social, and governance (ESG) standards through self-imposed measures within the supply chains.
TLIP, built on the IOTA digital ledger technology, will make a substantial contribution to RESULD by enhancing efficiency and reducing trade barriers through direct data exchange from the source. It is worth noting that IOTA recently signed a collaboration agreement with key players in the industry to revolutionize global trade. This aligns with IOTA’s launch of TLIP, which aims to merge the private and public sectors to facilitate paperless international trade.
According to Aljiosa Beije, Chief Technical Officer of Docklab, TLIP plays a crucial role in the RESULD process. TLIP is an essential component of RESULD’s vision for a fully digital end-to-end supply chain solution, both from a technical perspective and in terms of its ecosystem.
Currently, the digital exchange of trade data between systems is still in its early stages, with external data exchange relying primarily on paper-based documents like PDFs. However, full digitalization and RESULD’s current initiatives will significantly improve the process, as confirmed by research. The OECD study indicates that digital connectivity reduces global trade costs by 1% and increases digital connectivity and a 0.1% cost reduction by 1%. TLIP’s report on Medium states that legislation is advancing digitalization. For instance, the UK’s Electronic Trade Documents Act allows for the digital transfer of ownership of trade documents, opening up avenues for innovation, particularly in sustainability. The Carbon Border Adjustment Mechanism (CBAM), initiated in 2023, requires companies importing into the EU to disclose and validate emissions in their supply chains.
RESULD is drawing insights from previous digitalization initiatives, including projects by TKI-Dinalog and the Ecosystem of Trust pilots led by the UK Institute of Export & International Trade consortium.
