Supply Chain Use Cases for Blockchain

Bill-McBeath ChainLInk

Blockchain technology is considered to be a game-changer for decentralizing infrastructure and building a trust layer for business logic. It is envisioned to be a technology that could propel us into the next industrial revolution, with new paradigms for doing business in finance, supply chain, transportation, shared economy, and many other industries.

Supply Chain Use Cases for Blockchain

Here are a few different perspectives how blockchains can be useful in supply chain use cases with the following characteristics:

  • Lack of trust. Wherever there are unknown suppliers, customers, or service providers, blockchains can help entities transact with greater assurance; where disputes are common and their resolution expensive; where proof of authenticity and ownership is desired.
  • Many parties who need a single version of the truth. Where coordination of multiple parties, processes, and assets is needed.
  • Where multiple serial steps of paperwork slow things down, such as in global trade documentation, supply chain finance, and so forth.
  • Where reliable visibility of events across multiple parties has high value, such as supply chains that need chain-of-custody tracking, provenance, traceability, faster and more reliable recalls, etc.
  • Where auditability is important. Highly regulated supply chains; Socially responsible supply chains
  • Where fraud and data tampering is a problem.Fraud-prevalent supply chains and information chains

There are currently many trials, pilots, and applications of blockchain in supply chain. Major use cases include:

  • Chain-of-custody tracking, traceability, anticounterfeiting, provenance:IBM/Walmart, Context Labs, Mojix, Chronicled, Microsoft, bext360, Everledger; Often combined with IoT.
  • Global trade enablement.Workflows, documentation, tendering, port coordination (ocean carriers, drayage), container no-shows, customs clearance, shipment tracking; IBM/Maersk, 300cubits, Wave.
  • Supply chain finance/trade finance:IBM, Microsoft/BoA Standby Letter of Credit, Sweetbridge Foundation, Dubai, Natixis/Trafigura.
  • Spot markets & marketplaces, shared resources.Rating for transportation: trucks, chassis, containers.
  • Sustainability, socially responsible supply chains. Factory audits, carbon emissions tracking, fair trade, conflict minerals and diamonds.
  • Cargo security, anti-theft, personnel background check/verification: IBM, T-mining.
  • Asset management and tracking.
  • Contract management; dispute resolution.
  • Client ID/KYC (Know Your Customer).

On May 21 and 22, 2018, Blockchain Technology Initiatives (a non-profit organization) in collaboration with the University of Houston will be hosting xChain2: Blockchain Supply Chain and Logistics Forum in Houston, Texas. XChain2 will bridge the gap between emerging blockchain technology and current supply chain processes by translating technical features (smart contracts, decentralization, immutability, real time processing, etc.) into business benefits while showcasing real world pilot projects that are happening now and in the future. The conference aims to help attendees discover pragmatic solutions, meet subject matter experts, to learn how transform complex business operations.

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  • Date April 25, 2018
  • Tags 2018 April