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New Blockchain Network For Supply Management Launched By IBM And Others


08/06/2019


New Blockchain Network For Supply Management Launched By IBM And Others
A new blockchain is being launched by International Business Machines Corp (IBM). The tech giant aims to enhance output of its manual and cumbersome supply chain management, the company said while making announcement on Monday.
 
Supply chains are critical to any business and forms the backbone of most companies because it deals with the availability of raw materials or goods and services that are used to create product or a service. Managing supply chain involves ensuring that the flow of such goods and services is undisturbed and includes activities such as tracking the movement and storage of raw materials, ensuring quality of raw materials and management of inbound and outbound inventory. Supply china has been identified to be one of the activities of or business processes that can be benefited by using blockchain technology.
 
Blockhain is a form of an electronic ledger or a data base that is shared and is maintained by a network of computers that are connected to each other through the internet.
 
The movement and tracking of $2 trillion of goods and services annually throughout the world would be done by blockchain by 2023, said technology research firm Gartner Inc.
 
In addition to IBM, the other companies and firms that were instrumental in the development of the new blockchain included Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone and together they created the blockchian network that is called Trust Your Supplier.
 
Providing the technology and constructing the network using IBM’s blockchain platform is being done by Chainyard, which is a blockchain specialist firm. The supplier information of the companies apart from IBM is being put in the blockchain network while also helping to expand the network by contributing their experience.
 
IBM said that cumbersome manual processes are typically involved in the conventional strategies for supply chain management. The traditional supply chain management methods do not allow for accurate and efficient verification of identities and tracking of documents such as ISO certifications, bank account information, tax certifications, and certificates of insurance.
 
IBM said that manual time consuming processes would be eliminated and the risk of fraud and errors would be reduced by the use of a decentralized approach and an immutable audit trail built on blockchain.
 
“The validation and onboarding of new suppliers is a critical pain point for virtually any company that relies on a robust supply chain to conduct business,” Marie Wieck, general manager for IBM Blockchain, said in an email to the media. “By moving this process onto the blockchain, we’re taking much of that burden and shifting it to the network, where it can be shared in real-time more securely and efficiently.”
 
There would be a reduction of 70 to 80 per cent in the time that is typically taken for getting new suppliers onboard while an a reduction of reduction in administrative costs within its own business by 50 per cent was predicted by IBM’s own procurement organization, Wieck said.
 
(Source:www.reuters.com)