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Build a Supply Chain 4.0 ecosystem using Blockchain

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Blockchain technology allows partners in the Supply Chain to share data in a trusted and immutable way. The presentation features how you can use blockchain to optimize your E2E Supply Chain, using concrete illustrations. Two operational blockchain projects are described, from the development to the key decision process, resulting in an eco-system oriented solution with benefits for all participants. In short: get ready to start building a Supply Chain 4.0 ecosystem using Blockchain!

Presented by Walter Stiers, Industry Architect IBM on Supply Chain 4.0 : ready to operate in the digital era? (29 Nov, 2018)

Publicado en: Ingeniería
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Build a Supply Chain 4.0 ecosystem using Blockchain

  1. 1. Walter Stiers Walter_Stiers@be.ibm.com Blockchain – Build a SC 4.0 Ecosystem
  2. 2. Blockchain will fundamentally change business processes CPG’s records Carrier’s records Wholesaler’s records Retailer’s records Digitally signed, encrypted transactions & ledger All parties have same replica of the ledger CPG Carrier Wholesaler Retailer Traditional With Blockchain Clearing House … Inefficient, expensive, vulnerable … Consensus, provenance, immutability, finality
  3. 3. Blockchain for business…4 key elements Append-only distributed system of record shared across business network Business terms embedded in transaction database & executed with transactions All parties agree to network verified transaction Ensuring appropriate visibility; transactions are secure, authenticated & verifiable Privacy Shared ledger … Broader participation, lower cost, increased efficiency Smart contract Consensus
  4. 4. IBM Blockchain Strategy Drive the development of applications for specific business use-cases, to be deployed to active blockchain networks Solutions Services Ecosystem Platform Collaborate with services teams from ideation all the way to production Tap into our diverse ecosystem to develop strategic partnerships and create your competitive advantage Solve critical industry challenges by building and joining new business networks and applications Develop, govern and operate enterprise blockchain networks with speed and security A founding, premier member of Hyperledger, IBM is committed to open source, standards & governance
  5. 5. What lessons have we learned during this journey? Ensure that there is shared business value across all participants in the ecosystem Blockchain is fundamentally different from other technology enablers because it requires a network or ecosystem to provide value To drive true transformation it is critical to address: Ensure the right rules for: i. membership in the network ii. data ownership, access and usage rights iii. lifecycle management of business logic and smart contracts on the network iv. clients/3rd parties to deliver value added services to the ecosystem Trust model Business model Governance model Ensure that the solution provides the right trust guarantees to all participants
  6. 6. ⦿ TradeLens is built for the industry and offers benefits to trade participants from across the supply chain ecosystem ⦿ Responding to industry feedback, IBM and Maersk have revised the approach and are proceeding under a Collaboration Agreement, which offers greater flexibility and responsiveness to industry feedback ⦿ An Industry Advisory Board will help to shape the platform and drive standards ⦿ Maersk Line and Hamburg-Sud are participants under the same terms as other network members ⦿ Core platform components are available today under an Early Adopter program; full release remains on target for Q4 2018 IBM AND MAERSK HAVE LAUNCHED TRADELENS An open and neutral supply chain platform poised to transform the industry
  7. 7. Connects the ecosystem Brings together all parties in the supply chain - including traders, freight forwarders, inland transportation, ports and terminals, ocean carriers, customs and other government authorities, and others - onto a Blockchain- based platform with a secure permission and identity framework Drives true information sharing Provides for the seamless, secure sharing of real-time, actionable supply chain information across all parties to a trade - encompassing shipping milestones, cargo details, trade documents, the structured data embedded in trade documents, customs filings, sensor readings, and more Fosters collaboration and trust Enables the digitization and automation of the cross-organization business processes integral to global trade, including import and export clearance, with Blockchain ensuring secure, auditable, and non-repudiable transactions Spurs innovation Lays the foundation for ongoing improvement and innovation through an open, non-proprietary API, the use of standards and promotion of interoperability, and the launch of an Applications Marketplace that parties can use to build and deploy TradeLens-powered applications for themselves, their partners, and their customers THE TRADELENS PLATFORM Digitizing the global supply chain Inland Transportation Shippers / Beneficial Cargo Owner Supply Chain Visibility Systems Trade Associations Supply Chain / Transportation Management Systems Authorities Financial / Insurance Services Port Community Systems; Terminal Operating Systems Ports and Terminals Freight Forwarders / 3PLs Customs Systems Ocean Carriers Customs Brokers THE PLATFORM WILL BE BUILT ON AN OPEN TECHNOLOGY STACK AND IS UNDERPINNED BY BLOCKCHAIN TECHNOLOGY
  8. 8. BCO / NVO FFW / CHB / 3PL Inland Transportation Customs / Government Authorities Ports / Terminals Ocean Carriers FFW / CHB / 3PL Inland Transportation BCO / NVOPorts / Terminals Customs / Government Authorities SHIPPING MILESTONES AND SHIPMENT DATA STRUCTURED AND UNSTRUCTURED DOCUMENTS TRADELENS BLOCKCHAIN BUSINESS NETWORK TRADELENS PLATFORM Startcontainertracking Containertrackingended Emptycontainerpickedup fromdepot ETAemptycontainerat stuffingsite ATAEmptycontainerat stuffingsite Containerstuffingcompletedat inlandlocation VGMsubmitted Packedcontainerloaded Containersealed ATDPackedcontainerfrom stuffingsite Estimatedgateinforpacked containeratterminalexport Gateinfullatterminalexport ETDpackedcontainerfrom exportterminal ATAemptycontaineratdepot Exportdocumentationcleared Containerreadytoload ATDpackedcontainerfrom exportterminal ETApackedcontainerat importterminal Temperatureupdate Estimateddischargetimefor packedcontaineratimportterminal Importdocumentationcleared Containerselectedfor inspection ATApackedcontainerat importterminal Packedcontainerdischarged atimportterminal Estimatedgateoutofpacked containerfromterminalimport Gateoutpackedcontainer fromterminalimport ETApackedcontainerat strippinglocation ATApackedcontainerat strippinglocation Sealremoved Packedcontainerstrippedat inlandlocation Emptycontainerreadyfor pick-up Emptycontainerpickedup fromstrippinglocation Packing List Bill of Landing Export Documentation Advance Declaration Pre-Paid Invoice Certificate of Origin Shipping Instructions ISF Geography Specific Certificate Dangerous Goods Declaration Cargo Specific Certificate Commercial InvoiceCustoms Clearance Import Documentation Not exhaustive list of milestones tracked by platform Not exhaustive list of documents tracked by platform
  9. 9. The IBM Food Trust eco-system journey Pork Traceability / safety Mango Traceability / global trade Onboarding agriculture, ingredient suppliers, retailers, CPGs, QSRs and others 2017 2018 Additional partners joined the IBM Food Trust™ network, with growing food data transactionsconducts traceability pilots 2016
  10. 10. IBM Food Trust: Overview 1 out of 10 people get sick each year, and 420,000 die from foodborne illness Only 1 in 4 consumers trust today’s food system. 94% say they’d be more loyal to brands that offers transparency 80% of CPGs say their business is partially or entirely paper-based, resulting in inefficiencies and unnecessary costs 1 / 3 of global fresh fruits and vegetables are thrown away because their quality has dropped to unacceptable Trace Certification Freshness* Consumer* Early Adopters Food Supply Chain Ecosystem Modules Blockchain Technology IBM Food Trust solution provides secure access to end-to-end food supply chain information via specialized modules IBMFoodTrust
  11. 11. At its core, IFT relies on the GS1 data standard, in particular: ü EPCICS events ü GS1 XML ü GTIN/LGTIN/SGTI master data ü GL locations An essential part of the discovery and onboarding phases is to transform and map data from existing systems to be compatible with these data standards. IFT Integration
  12. 12. Freshness: Blockchain + IoT + Analytics 1 Receiving Issue to Production Grind, Blend, & Form Seal & Palletize • RFID label applied • Label encoded • Label scanned QA Cool & Storage • Scan as case enters and exits QA cooler • Scan as case exits manufacturing facility Distribution Receipt • Scan as case enters DC Ship to Restaurant • Scan as case leaves DC Restaurant • Scan as case enters walk-in cooler 2 4 86 7 9 53 Grill • Scan as case is removed from cooler Manufacturing Distribution Restaurants
  13. 13. Walmart, Sam's Club Start Mandating Suppliers Use IBM Blockchain • Walmart will require all fresh, leafy greens suppliers to implement digital, end-to-end traceability of their products using blockchain by September of next year. • IBM, which began testing its blockchain services with Walmart, Kroger and other food companies last year, will provide the software and support for suppliers.
  14. 14. How is IFT leveraged today? Produce traceability from farm to store Traceability and transparency for quality label chicken End-to-end traceability and provenance Traceability and certificate management for multi-ingredient products Integrating IOT capabilities to address temperature and product quality requirements Capture, manage, and optimize large data sets collected during audits and certifications
  15. 15. IBM Food Trust provides value to the entire food system Growers / Producers Food Manufacturers Food Logistics • Show sustainable growth practices • Prove farm is not source of contamination • Connect with downstream supply chain • Manage inventory in real-time • Automate & reduce manual certificate management • Instill trust between retailers, suppliers & customers • Manage inventory in real-time • Enhance ability to meet compliance standards • Reduce manual processes Consumers • Learn about and act on recalls quickly • Understand and trust their food better • Reduce food fraud Value for All Wholesalers / Distributors • Manage inventory in real-time • Conduct targeted recalls • Enable internal data sharing Food Retailers • Assure customers food is safe • Conduct targeted recalls • Extend shelf-life Food Service • Ensure safe food • Certify food sourcing practices • Reduce food waste Certification Bodies Regulators • Identify contamination quickly • Reduce unnecessary testing • Reduce fraudulent certificates • Increase renewal speed
  16. 16. 18 Ecosystem Blockchain solves business problems by enabling the ecosystem to share information in a trusted manner TechnologyGovernance Model Standards & Interoperability Business Value IBM Food Trust delivers business value to the food ecosystem from the combination of governance, standards and interoperability, and technology • Comprehensive governance model ensures that the rights and information of all participants are protected • Governance policy, maintained by independent Advisory Council, created with food industry leaders and early adopters Data Membership Trust Model Transactions Interoperabilty & 3rd parties • All participants see positive value but the drivers of value may be different • Three general-availability modules and two alphas: Trace Certificate Management Data Entry & Access Freshness Consumer • Participants choose modules that will bring value to itself and its transaction partners • SaaS solution with a variety of initial modules • Foundation laid for additional capabilities from both IBM and 3rd party vendors • IBM Food Trust is built on the open source IBM Blockchain Platform which provides: Enterprise-class Security Reliability Scalability • Delivered using IBM Cloud for enterprise-class performance • Business and technology standards were leveraged to ensure reusability and access to all participants e.g., GS1 e.g., Hyperledger Fabric • Interoperability on both the business and technology levels ensures information exchange across the entire food ecosystem
  17. 17. Thank You

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