In order to address the challenges caused by disruptions in the transportation of fruits and vegetables, TLIP has partnered with RESULD as part of their digitalization efforts. TLIP will utilize the secure and traceable IOTA technology to achieve their goals.
Trade and Logistics Information Pipeline (TLIP) has officially announced their participation in Responsible Supply Chains and Logistics Due Diligence (RESULD), a program aimed at overcoming the obstacles posed by paper-based cross-border processes in the fruit and vegetable supply chains between countries such as Kenya, the Netherlands, and the United Kingdom. TLIP’s decision to join RESULD will facilitate collaboration among all participants in the supply chain.
The industry has long been concerned about the additional costs incurred due to transportation disruptions. A 2023 report by the Global Coalition of Fresh Produce highlighted the lack of digitalization as a major gap in the industry. This problem is further exacerbated by the lack of digital integration among various actors in the supply chain, including carriers, port authorities, trucking and railroad firms, importers, and exporters. The lack of communication leads to delays and increased costs.
RESULD’s decision to embrace digitalization in order to improve fruit and vegetable trade will not only enhance product quality, but also focus on ESG (Environmental, Social, and Governance) standards through self-imposed measures within the supply chains.
TLIP, built on the IOTA digital ledger technology, is well-known for its potential to enhance efficiency and reduce trade barriers by enabling direct data exchange from the source. Leveraging TLIP’s features will ensure that RESULD can take advantage of the secure record and comprehensive traceability required for a fully digital end-to-end supply chain. IOTA has also recently signed a collaboration agreement with key players in the industry to revolutionize global trade.
Aljiosa Beije, Chief Technical Officer of Docklab, emphasizes the importance of TLIP in the RESULD process. TLIP plays a crucial role in realizing RESULD’s 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 is still in its early stages, with external data exchange relying mostly on paper-based documents like PDFs. However, the full digitalization and the initiatives by RESULD will significantly improve the process, as confirmed by research. According to a study by the OECD, digital connectivity reduces global trade costs by 1% and increases digital connectivity by 1%, along with a 0.1% reduction in cost. Legislative advancements, such as the UK’s Electronic Trade Documents Act, which permits the digital transfer of ownership of trade documents, further support digitalization efforts.
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.