The document provides an overview of IBM blockchain solutions, including Food Trust, TradeLens, World Wire, and Digital Identity. It describes Food Trust's use of blockchain to improve food safety, traceability, and reduce food waste. It outlines how TradeLens is a blockchain platform developed by IBM and Maersk to digitize global supply chains. It also briefly introduces World Wire and Digital Identity solutions. The document is intended to provide introductions to IBM blockchain solutions for clients and IBM employees.
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IBM Blockchain Solutions Explained v0.6
1. Solutions Explained
IBM Blockchain Networks
V0.6, 8 August 2019
Blockchain Explained Series
Blockchain Explained
IBM Blockchain Platform Explained
Solutions Explained
Labs Explained
What’s New
IBM Blockchain Usage Patterns
2. IBM Solutions
• Food Trust
• TradeLens
• World Wire
• Digital Identity
Your Solution
3. 3
IBM Solutions
• The aim of this presentation is to provide introductions to
IBM blockchain solutions
• It is suitable for clients and IBMers wishing to find out more
about one or more of these solutions
• See also the Client References presentation that gives
summary information on many more blockchain projects
6. 6
The Problem:
• Data is siloed within each company and accessing it
requires a request and time
• Exchange of information takes place between a pair of
partners; to get information from a distant partner may
require intermediaries, time, resources
• Most transactions are still paper-based, creating
inefficiencies and opportunities for fraud
• Because everyone maintains their own record of
transactions, differences take time and resources to
reconcile
Today, traditional system constructs limit transparency
6
The food industry today
Grower
Manufacturer
Retailer
Restaurant Logistics
Inputs
7. 7
Blockchain transforms systems with trust and transparency
The Solution:
• Because blockchain provides an independent data-
sharing platform, participants trust it
• Once data is shared in a single data-sharing platform,
everyone has instant transparency into the
transactions they are authorized to view; no
intermediation required
• Data immutability creates an auditable record of all
transactions, disincentivizing fraudulent behavior
• Dispute resolution from the shared ledger can be
automated saving time and resources
7
The food industry with blockchain
Grower
Manufacturer
RetailerRestaurant
Logistics
Inputs
8. 8
Introducing IBM Food Trust
TM
built on Blockchain technology
• The IBM Food Trust solution is a set of modules providing
traceability to improve food transparency and efficiency
• Blockchain is used to create a trusted connection with
shared value for all ecosystem participants, including end
consumers
• The solution offers connectors for interoperability and
leveraging existing standards (e.g., GS1)
• Blockchain properties come together to create a more
trusted, transparent, and efficient data-sharing platform.
Distributed
Ledger
Digital
Transactions
Immutable
Data
Efficiency
Trust Transparency
9. 9
IBM Food Trust offers industry-specific functionality
targeted at key pain points
9
Fresh Insights
• Access real-time and
aggregate supply
chain data to extend
product freshness
and shelf life
Trace
• Trace the location and
status of food products
upstream and
downstream across the
supply chain
Certifications
• Enable reliability and
accountability with
instant access to
digitized records and
documents
Third-party
• Partner to expand
functionalities and
deliver new value
across the food
system
Food Supply
Ecosystem
Blockchain
Technology
IBM Blockchain Platform
Hyperledger Fabric
Capabilities
Information-
sharing
Platform
10. 10
Trace
Last year, there were at least 456 food safety
recalls globally due to contamination, with each
recall estimated to cost an average of $10 million.
Functionality
• Securely and transparently trace the location and status
of food products upstream and downstream in seconds.
Impact
• Improve food safety
• Conduct surgical recalls
• Identify ingredient provenance
• Reduce Food Fraud
10
11. 11
Certifications
Driven by today’s food system complexity, food
fraud is a global business estimated to cost
$40 billion annually.
Functionality
• Easily digitize and share inspections, quality
certifications, and registrations.
Impact
• Improved brand trust
• Reduced food fraud
• More sustainable ecosystem
11
12. 12
Fresh Insights
40-50% of root crops, fruits and vegetables are
wasted annually. Food losses and waste amounts
to roughly $680 billion in industrialized countries.
Functionality
• Real time insights on inventory flow, average dwell time,
time-since-harvest. Enables root-cause diagnosis and
provides alert capabilities.
Impact
• Supply chain efficiencies
• Reduced food waste
• Increased Shelf Life
• More sustainable ecosystem
12
13. 13
IBM Food Trust provides value to the entire food ecosystem
Farmers /
Producers
§ Prove farm is not a
source of outbreak
§ Ease of connectivity
to the supply chain
Consumers
§ Learn about recalls
and increased
transparency
§ Reduce risk of being
victimized by food
fraud
Regulators
§ Identify
contamination
quickly
§ Reduce
unnecessary testing
Food Service
§ Assure customers
food supplied Is safe
§ Reduce wasted food
Food Logistics
§ Enhance ability to
meet compliance
standards
§ Reduce manual
processes
Food Retailers
§ Assure customers
food supplied is
safe
§ Conduct targeted
recalls quickly
Certification Bodies
§ Reduce
fraudulent
certificates
§ Increase
renewal speed
Food Manufacturers
/ CPGs
§ Instill trust between
retails, suppliers &
customers
§ Automate & reduce
manual certificate
management Wholesalers/
Distributors
§ Conduct targeted
recalls
§ Enable internal data
sharing
14. 14
How long does it take to
trace a package of sliced
mangoes back to the farm?
Typical manual, mixed
digital and paper-based
method
IBM Food Trust digital solution
6 days
18 hours
26 minutes
2.2 seconds
Pilot Test Case
Supply Chain
Results
The effectiveness of the IBM Food Trust solution was
demonstrated with a Walmart mango pilot
15. 15
Momentum is growing
15
Sep 24, 2018
Walmart asks
leafy green
suppliers to join
Nov 1, 2018
FDA encourages
latest technology
to trace
Oct 8, 2018
IBM Food Trust
generally
available
Jan 31, 2019
Majority of
Walmart
suppliers join
80+
clients
Today, we have full in-production
capability after over a year of testing:
• One of the largest non-crypto blockchain
networks in the world
• 5M+ food products on retail shelves
• ~1,200 SKUs/items digitized,
representing 4M+ transactions
• 200K traces conducted to date
16. The only enterprise-class blockchain solution for the food system
16
Governance Model
Built and
maintained with the
collaboration of
industry thought
leaders
• Data Ownership
• Membership
• Trust Model
• Interoperability
• 3rd Parties
• And more
Business Value
Designed so every
participant can see
a positive ROI
Standards &
Interoperability
Built to interoperate
with blockchain and
non-blockchain
solutions leveraging
existing standards
Technology
Innovative
enterprise-class
technology:
• Security / Privacy
• Reliability
• Scalability
• Resilience
• Auditability
Ecosystem
Open to all
participants in the
food ecosystem
3rd Parties
It is more than just blockchain technology; five pillars underpin a
successful blockchain ecosystem
17. 17
Range of onboarding offerings
Premium onboarding Assisted onboarding Virtually guided onboarding Self guided onboarding
For clients needing process
reengineering in addition to
IBM Food Trust onboarding
Clients receive a dedicated expert
to guide them through the
onboarding process
Clients interact with an expert in
pre-defined education modules
and as-needed to answer
onboarding questions
Clients onboard independently
using self-service education,
digitally available tools,
documentation, chat and
discussion forums
IBM Led IBM Led Client Led Client Led
Target: enterprise
§ Process Improvements
§ App Connect Integration
§ 1 supply chain process
(2-100 SKUs) onboard
Target: mid
§ Single process data
mapping and process
map
§ 1 supply chain process
(2-50 SKUs) onboard
Target: mid
§ 1 supply chain process
(2-20 SKUs) onboard
§ Add on time as needed
Target: mid & small
§ Self-onboarded ongoing
SKUs & Certificates
$150K $35K $5K + add-ons No cost
IBM Assisted
18. 18
Onboarding on to the Food Trust Network
IBM
Food Trust
You select
initial product(s)
Onboarding
IBM
Food Trust
You onboard
remaining products
Post-Onboarding
IBM Onboarding Team
Walkthrough
IBM Support Team
Support
After the initial product(s) onboarding with IBM, you will be able to onboard more products,
data events, and ecosystem partners to the blockchain independently of the IBM Onboarding team.
Onboard Process Outcomes
ü Walk you through how to identify product(s) that can be traced on blockchain
ü Identify data events and elements that will be integrated into the blockchain
ü Push product(s) from client systems to the integration environment and perform combo testing with your testing partner
ü Work with technical staff in the integration of your system to Food Trust
19. 19
Onboarding Outcomes
The onboarding process will enable you to continue using the solution after the onboarding is complete.
You will be
enabled to
map business process events to
GS1 messages
gain access to IBM Food Trust support
onboard additional product(s)
extend data visibility to trading
partners
20. 20
Onboarding: Overall Process and Approach
IBM Onboarding Team IBM Support Team
GS1 Event
Mapping
Sample
Generation
Integration
Development
Data Linkage
Validation
UI
Testing
Discovery
Workshop
Promoted to
Production
Hand-off to
Support
Post-onboarding
questions
The IBM Onboarding Team will walk you through the onboarding process for your initial
product. After the data for your first product has been pushed to the blockchain, the IBM
Support Team will help support you as you onboard your remaining products.
The IBM Support Team is
available to help after the
initial onboarding process.
Continuous training for the onboarding process
Identify client’s
onboarding
requirements
Ensure client
readiness
for onboarding
Start Production
Operations
Discovery
(Sprint 1)
Preparation
(Sprints 2-5)
Launch
(Sprint 6)
Client fully informed
and prepared for
onboarding
Assist client to develop integration requirements.
Start pushing
live data to
blockchain
Discovery
Workshop:
Readiness
Assessment
Post-Onboarding
Onboarding
Knowledge
Transfer
Seek client feedback and begin
independent onboarding
22. 22
• IBM and Maersk are developing the platform under a
joint collaboration, with significant input from and
participation by the industry
• The platform empowers faster and more efficient,
transparent and secure global trade
• TradeLens is built for the industry and offers benefits
to trade participants from across the supply chain
ecosystem
• An Advisory Board is being formed to help shape the
platform and drive standards
• TradeLens is live in production today, processing
millions of transactions per day
An open and neutral blockchain-based platform that is
digitizing the global supply chain and transforming trade
September 2018
TradeLens Limited Availability Release
December 2018
TradeLens Commercial Release 1.5 million
events per day published to the platform
January 2019
Latest production release includes new
document sharing, permissioning and notification
features. Working with more than 100 ecosystem
participants
August 2018
Formal launch of the TradeLens platform
92 participants signed on
January 2018
Beta release of the platform and launch of Early
Adopter program; trials underway
OURJOURNEYTradeLens
23. 23
The Collaboration Model
• A collaboration team has been established to lead the initiative and drive industry adoption
– Maersk has established an operational subsidiary to manage staff assigned to the collaboration; this subsidiary also
ensures TradeLens independence from other Maersk business units
– IBM has assigned dedicated staff from across its Blockchain, Cloud, consulting, and sales units
• IBM and Maersk jointly own the IP created from the collaboration
• IBM hosts, operates and supports the platform
• An Industry Advisory Board will be formed by ecosystem participants to help shape the platform and establish open standards
• Network Members, including ocean carriers, ports, inland transportation, and country authorities, are invited to participate on
terms that give them access to the core platform, in exchange for the data they originate; they may enter into participation
agreements with either IBM or Maersk
• IBM and Maersk independently market, sell and contract TradeLens through their own sales channels
• Third parties build and deploy applications on and sell services through the TradeLens Application Marketplace
• Maersk business units including Maersk Line, Hamburg-Sud, APMT, and Damco participate on the same terms as other
participants with no special treatment or access to competitor data
IBM and Maersk have jointly developed the TradeLens platform and will continue to
invest in it
24. 24
The cost of global trade is estimated at $1.8 trillion annually1
with potential savings from more efficient processes of ~10%
24
More than $16 trillion
in goods are shipped
across international
borders each year
80% of the goods
consumers use daily
are carried by the
ocean shipping industry
By reducing barriers
within the international
supply chain, global
trade could increase
by nearly 15%,
boosting economies
and creating jobs2
In many cases the
administrative cost of
moving a container is
higher than the cost of
physically moving it
1) Maersk Strategy Group (May 19, 2016) based on World Bank data for World Trade Costs
2) The World Economic Forum: Enabling Trade Valuing Growth Opportunities 2013
25. 25
Global trade is highly inefficient and burdened by paper-
based processes
Data trapped in organizational silos
Information is held in paper and various digital formats across dozens of service
providers along the supply chain, requiring complex, cumbersome, and costly
peer-to-peer messaging. The result is inconsistent information across
organizational boundaries, latency in obtaining shipment visibility, and blind
spots that hinder the efficient flow of goods.
Manual, time-consuming, paper-based processes
The collection and processing of up-to-date data, as well as inefficient trade
document exchange, requires manual checks and frequent follow-ups and
results in errors, delays and high compliance costs. Late filings are common
due to missing information.
Clearance takes too long and is often subject to fraud
Risk assessments by customs authorities lack sufficient and trusted information
resulting in high inspection rates, added prevention measures against fraud and
forgery, and delayed customs clearance.
High costs and poor customer service
These challenges have significant downstream repercussions. The inability to
forecast and plan effectively, address supply chain disruptions in real-time, and
share trusted information across the supply chain leads to excessive safety
stock inventory, high administrative costs, operational challenges, and
ultimately poor customer service.
Inland Transportation
Shippers / Beneficial
Cargo Owner
Supply Chain
Visibility Systems
Trade
Association
s
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
26. 26
The TradeLens Platform - Digitizing the global supply chain
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
Inland Transportation
Shippers / Beneficial
Cargo Owner
Supply Chain
Visibility Systems
Authorities
Financial /
Insurance Services
Port Community
Systems; Terminal
Operating Systems
Freight
Forwarders /
3PLs
Customs
Systems
Customs
Brokers
THE PLATFORM IS BUILT ON AN OPEN
TECHNOLOGY STACK AND IS UNDERPINNED
BY BLOCKCHAIN TECHNOLOGY
Ports and
Terminals
Ocean Carriers
Trade
Associations
Supply Chain /
Transportation
Management
Systems
27. 27
The TradeLens ecosystem
Primary consumers and
beneficiaries of the platform
⦿ Shippers (BCOs, retailers, manufacturers, etc.)
⦿ Freight forwarders, customs brokers, 3PL
⦿ Financial institutions
TRADELENS
PLATFORM
Clients
Applications
Marketplace
Network
Members
Provide and gain access to end-to-
end supply chain information
⦿ Ocean carriers
⦿ Ports and terminals
⦿ Government authorities
⦿ Inland transportation
⦿ Freight forwarders / 3PLs
⦿ 3rd party data providers
Offer value added services to the
ecosystem through a platform marketplace
⦿ TradeLens offerings
⦿ Offerings from third party ISVs
⦿ Offerings from Network Members and
Clients
28. 28
28
PORTS/ TERMINAL OPERATORS
OCEANCARRIERS
GOVERNMENT
AUTHORITIES
INLAND
TRANSPORTATION
FREIGHT
FORWARDERS/ 3PL
SHIPPERS/ BENEFICIAL
CARGOOWNER
FINANCIAL SERVICES
Benefit from pre-built connections to shipping lines and other actors, end-to-end
visibility across shipping corridors, and real-time access to more information to
enrich port collaboration and improve terminal planning
Provide information about the disposition of shipments
within the boundaries of the port / terminal
Benefit from reduced customer service and network integration cost, less revenue
leakage, and less mis-declared cargo due to a digital audit trail of end-to-end
shipment events and source documents
Provide information about the disposition of shipments
across the ocean leg
Benefit from more informed risk assessments, better information sharing, less
manual paperwork, and easier connections to national single window platforms
Provide information about the export and import
clearance status for shipments into and out of the country
Benefit from improved planning and utilization of assets (e.g., less queuing)
given real-time access to end-to-end supply chain events for shipments
Provide information on the disposition of shipments
carried on trucks, rail, barges, etc.
Benefit from a streamlined and improved supply chain allowing for greater
predictability, early notification of issues, full transparency to validate fees and
surcharges, and less safety stock inventory
Engage with the platform as a consumer of shipping
information and means to streamline clearance
Benefit from pre-built connections to the ecosystem, improved tools for customs
clearance brokerage function, and real-time access to the end–to-end supply chain
data to improve effectiveness of track-and-trace tools
Provide the transportation plan, inland transportation
events, information on intermodal handoffs, and
document filings
Benefit from access to a definitive, real-time, and immutable source of information
for trade finance and trade insurance
Engage with the platform as a consumer of supply
chain information
Benefits to the ecosystem
29. 29
NETWORK
Comprised of the TradeLens
network members, such as
carriers, ports, and customs
authorities, that connect to and
provide data to the platform
TradeLens - Solutions Landscape
PLATFORM
Accessible via an open API, the
TradeLens Platform brings
together the supply chain
ecosystem and enables the
industry to share information
and collaborate; Blockchain and
cloud technologies power the
platform
APPLICATIONS AND SERVICES
An open marketplace that
allows both TradeLens and
third-parties to publish fit-for-
purpose services atop the
TradeLens platform
TRADELENS
30. 30
Network geographic Coverage - as of April 2019
•
••
•
•
•
•
•
•
••
• •
•
• ••
•••
•
•
•
•
•
••
•
•
•
••
•
•
• •
••
•
••
Los Angeles
Lazaro
Callao
Valparaiso
Montreal
Houston
Mobile
Philadelphia
Halifax
Elizabeth
Buenos Aires
Itajai
Santos
Pecem
Onne
Cotonou
Tangier
•
Algeciras
Valencia
Barcelona
Bilbao
Grangemouth
Liverpool
Avonmouth •
Newcastle
Immingham
Maasvlakte
Felixstowe
•
Izmir
Gothenburg•
Poti
Bahrain Pipavav
Visakhapatnam
Singapore
Hong Kong
Manila
Fremantle
Melbourne
Brisbane
Auckland
Tauranga
Napier
•
Sydney
••
Pyeongtaek
Gunsan
Kwangyang
Pohang
Incheon
Busan
Ulsan
Apapa
Hull
Teesport
• Xiamen
31. 31
Append-only
distributed system of
record shared across
business network
A network of industry
participants maintains a
distributed, permissioned
ledger with copies of
document filings, relevant
supply chain events,
authority approval status,
and full audit history;
every change results in a
new, immutable block
Shared business logic
governing what
transactions may be
written to the ledger
Cross-organizational
business processes, such
as import and export
clearance, are pre-
programmed and built into
Blockchain and distributed
to and executed on the
network, preventing any
member from changing the
business logic
Ensuring appropriate
visibility; transactions are
secure, authenticated and
verifiable
Cryptography enables
permissioned access so
only the parties
participating in a
specific shipment can
submit, edit or approve
related data
Transactions are
endorsed by relevant
participants
Information such as
documentation filings and
authority approvals can
only be changed if
endorsed by the parties
taking part in the
shipment; full audit
history maintained on the
Blockchain
TradeLens and Blockchain
SHARED LEDGER SMART CONTRACT PRIVACY TRUST
Blockchain addresses the underlying challenges inherent in collaborating across a
distributed, fragmented supply chain ecosystem
32. 32
• TradeLens is available today for both Clients and Network Members.
– Clients can get up and running quickly and gain access to near real-time,
high-fidelity shipping milestones via the TradeLens web app or by consuming
data via subscription
– Network Members must provide data, and can get access to data, according
to the published TradeLens Data Sharing Specification
• Interested participants should contact their local IBM or Maersk sales
representatives.
• The Early Adopter Program remains open for selected participants
who would trial and help test beta features under development.
Participating in TradeLens
Clients
• Obtain a quotation from IBM or
Maersk
• Sign SaaS agreement with
IBM or Maersk
• Initiate onboarding steps with
TradeLens onboarding team
Network Members
• Review the TradeLens Data
Sharing Specification and the
Swagger API for publishing /
subscribing to events:
https://docs.tradelens.com/
• Sign the Network Member
Agreement with IBM or Maersk
• Initiate onboarding steps with
TradeLens onboarding team
NEXT STEPS
33. 33
MORE INFORMATION
• www.TradeLens.com
• TradeLens documentation:
– https://www.tradelens.com/documentation/
• TradeLens demonstration video:
– https://www.youtube.com/watch?v=-QgPQzwyrCA
• Blockchain and supply chain:
– https://www.ibm.com/blockchain/industries/supply-chain
• TradeLens news:
– https://www.tradelens.com/news/
33
35. Total annual cross border payment
transaction and FX flows
$100’s of Trillions
Total payments-related
revenue within 5 years
$3.0 Trillion
Payments revenue represents 38% of
total banking revenue globally; and a
critical customer relationship channel
38% of Bank Revenue
Cross border payment revenue is half of
global payment revenue with 20%+ growth
rates
$1 Trillion @ 20% growth
• Revenue is moving away from
banks to non-bank financial firms
• Payment margins are exposed,
with major regional differences
• In US, UK, and Europe, margins are
under increasing pressure from
Fintech’s
Economic
Trends
• Faster / Immediate Payments,
Real Time Settlement
• Regulation & Legislation (PSD2,
GDPR)
• Blockchain / DLT Seen as Enabler
• New Forms of eMoney: Central
Bank Digital Currencies and Stable
Coins
Market
Trends
Payments: Trends
Source: McKinsey, 2018
57. IBM Solutions
• Food Trust
• TradeLens
• World Wire
• Digital Identity
Your Solution
58. 58
Good blockchain use-case or bad?
Food
Provenance
Know Your
Customer
Track Your
Child
Electronic
Medical
Records
Holiday
Tracking
Tool
Secure
Document
Store
59. 59
– Identifying a good blockchain use-case is not always easy!
– However there should always be:
1. A business problem to be solved
• That cannot be more efficiently solved with other
technologies
2. An identifiable business network
• With Participants, Assets and Transactions
3. A need for trust
• Consensus, Immutability, Finality or Provenance
What makes a good blockchain use case?
60. 60
– First use-cases are even more difficult to identify!
1. A limited scope, but still solves a real business problem
• Minimum Viable Product in a few weeks of effort
2. A smaller business network
• Usually without requiring regulators and consortia
3. Allows for scaling with more participants and scenarios
• Consider shadow chains to mitigate risks
Start small, succeed and grow fast!
What makes a good first blockchain use case?
61. 61
1. What is the specific business problem / challenge that the first project will address?
2. What is the current way of solving this business problem?
3. Assuming the business problem is large, what specific aspects of this business problem will be addressed?
4. Who are the business network participants (organizations) involved and what are their roles?
5. Who are the specific people within the organization and what are their job roles?
6. What assets are involved and what is the key information associated with the assets?
7. What are the transactions involved, between whom, and what assets are associated with transactions?
8. What are the main steps in the current workflow and how are these executed by the business network participants?
9. What is the expected benefit of applying blockchain technology to the business problem for each of the network
participants?
10. What legacy systems are involved? What degree of integration with the legacy systems is needed?
Sample questions to ask for the selected use case:
63. 63
– It can be difficult to accurately quantify investment case for blockchain
– Things to consider:
– Existing Pain Points
– Scope – participants, assets, transactions
– Benefits: baseline, minimum viable ecosystem (MVE) & mature network
– Blockchain Design Points
– References
Blockchain Value Design (BVD) activity will help elaborate these items!
Assessing Business Value
64. Benefits benchmarks
- Value Tree M
F
M
M
M
F
M
M
F
KPI’s (e.g.)
References
Problem
Participants
Asset & Trust
Transactions
Pain Points
Blockchain : Design Points
New
revenue
Improve
client
experience
Reduce
transport
costs
# new value propositions
Increase in customer satisfaction
Increase in trade volumes
Cycle times (transit & shipping)
Waste as % of total shipped
Fraud and errors as % of
total costs
Documentation admin. as
% of total costs
• Transport remains highly dependant on a flood of paper that is never digitised
• Shipping information must pass through many hands, increasing potential for delays in
transport.
• One shipment can require sign-off from 30 unique organizations and up to 200
communications.
• One lost form or late approval could leave the container stuck in port
• The entire process can take more than one month..
• Fraudulent changes may be made to the Bill of Lading
90% of goods in global trade are carried by the ocean shipping
industry each year. Costs associated with trade documentation
processing and administration are estimated to be up to 20%
the actual physical transportation costs.
Need for trust around paperwork associated with a container
• Securely and transparently trace the container’s path through the
supply chain on the blockchain
• Add trust (Immutability and Provenance) around the Bill of Lading and
other container paperwork
• Automate the transit and shipping process with Smart Contracts
reducing cycle times and delays
• No reconciliation or matching of documentation with near instant
updates - eliminates the need for audit and verification
• Removes paper and intermediaries
Baseline
30 days
Phase 1 Phase 2-3
+15%- +5%
5%
20%
6%
4%
15%
5%
0.5%
5%
1%
10 days25 days
- - 1 to 3
Manage and track the paper trail of tens of millions of shipping containers
across the world by digitizing the supply chain process
Solution
Supplier, couriers (*2), customs (*2) , ports (*2), shipper and retailer ….
Supplier prepares to ship, release container to courier, load to ship,
clear customs, retailer receipt
- 5% 10%
ANO -1
ANO -2
• Find new value propositions to exploit the network effect between
members
Template – example only (Cross Border Supply Chain)
65. Questions? Tweet us or
go to ibm.com/blockchain
@IBMBlockchain
IBM Blockchain
IBM Blockchain
Thank you