Yesterday IBM announced a new blockchain network aimed at improving manual supply chain management. The network is called “Trust Your Supplier” and alongside IBM, the other founding participants are Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone. Chainyard, a blockchain specialist firm, is assisting with the build of the network using IBM’s blockchain platform.
Supply chain management covers a very broad range of activities regarding the flow of goods and services, from the movement and storage of the product’s raw materials through to final distribution to the consumer.
IBM said the new network would eliminate manual time consuming processes, particularly in relation to validation and onboarding of new suppliers, and help reduce the risk of fraud and errors, through the blockchain platform’s decentralised approach and perpetual audit trail. The result? Reductions in cost, complexity and speed of procurement for both buyers and suppliers.
Great to see another way in which technology is helping with procurement.
Supply chain management involves overseeing the flow of goods and services, such as tracking the movement and storage of raw materials, inventory, and finished goods. It has been identified as one area that can benefit from blockchain technology, a shared database maintained by a network of computers connected to the internet. Technology research firm Gartner Inc said by 2023, blockchain will support the global movement and tracking of $2 trillion of goods and services annually.