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)
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. 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. 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. 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. ⦿ 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. 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. 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
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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. 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. 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. 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. 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. 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.
15. 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
16. 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
17.
18. 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