Webinar Slides from the Blockchain Webinar

Results on Blockchain
Testing
November 2017

Supply Chain Insights LLC Copyright © 2016, p. 2
SPEAKERS

Confluence of Technologies

Blockchain is an incorruptible, and immutable, digital ledger of economic
transactions that can be programmed to record anything of value.
While blockchain is secure, the software on blockchain may not be.
There are many variants of blockchain. The Hyperledger Project is an
open source option. Sofware termed, fabric, sits on top of Hyperledger to
enable the passing of contracts and supply chain documents.
What Is Blockchain?

Community Registry. Today network registration is onboarding to every network as an individual or as a company. It lacks the system of
reference of division/company or company/industry. What if we could have a community registry where we have a single sign-on
which could be accessed by all value networks? (Analogous to network DNS.) This numbering schema would be carried in blockchain
messaging, enabling writing information once, and safe/secure communication across the network.
Replacement of EDI. Today EDI is the workhorse of the supply chain. Messages are transmitted and opened safely and securely.
However, it is batch, and there is latency as the message is opened. In addition, the passage and receipt of EDI requires sophisticated IT
groups. As a result, it is costlier. (This is not always a reality for small companies in emerging economies.) Could blockchain replace EDI?
This is a stretch objective, but I think it’s possible.
Lineage. Track and Trace. Track and trace across multiple parties is cumbersome and lacks reliability. Blockchain offers the ability to
embed the origin and transfer points in the chain to encode lot codes, origin points and destinations. This could help in food track and trace,
the management of gray market goods to eliminate counterfeit items, and the assurance of origin for tracking social responsibility goals for
fair labor, Congo metals, etc. This will enable compliance and could streamline recalls.
Safe and Secure Supply Chains. As goods pass through the supply chain, multiple parties handle the goods. Blockchain technologies
enable a chain of custody. In the process, the requirements of each product for handling are communicated on receipt. Why is this an
issue? We discard 1/3 of perishable items. What if the use of blockchain, along with temperature sensing, could redefine code dates real-
time based on handling for perishable items like fruits/vegetables and chicken? And, in extreme cases of temperature or handling abuse
indicate disposal? (This is extremely important in pharmaceutical cold chains.) Or, what if the conditions for handling could be read on
receipt to enable safe put-away for flammables?
Improving Social Responsibility Goals. Tracking carbon and point of origin for compliance is difficult. One thing is clear: audits do not
work. As we tackle issues like fair labor, clean water, Congo metals, and carbon consumption, blockchain can track the code of custody
and help us to better understand and measure energy consumption, carbon emissions and other social responsibility goal tracking
Supply Chain Finance. The origin of blockchain is safe and secure payment. Could we disintermediate banks as we know them? Each
time a supply chain transaction passes through a bank, there are charges. Could we drive a massive restructuring of world banking to
reduce bank charges for credit cards, wire transfers, and EFT/ACH payments?
Document Sharing. I think the world has too many lawyers. In supply chain, we spend hours upon hours negotiating terms and conditions
of contracts. After completion, the filed contracts are never used again. We do not connect the contracts to supply chain execution. So,
what if contracts could accompany a PO, and as conditions change, rules change the cost based on delivery conditions? Or delivery
conditions, based on availability (dynamic dock scheduling) and weather?
Use Cases

Bitcoin is a cryptocurrency and an alternate form of currency released
by a group of open source programmers in 2009. (name used Satoshi
Nkamoto)
It is used for peer-to-peer interactions between users directly without
intermediators or a central repository. It is a decentralized digital
currency. Today, over 150,000 merchants and vendors use this alternate
form of payment.
What is Bitcoin?

Could We Disintermediate Banking in Supply Chain Finance?
Finance is the art of
moving money from
hand-to-hand until
nothing is left.
Supply chains are about
the creation of value.
There is a reason why
big banks dominate the
landscape of every city.

Write once and use company and contact information many times.Community Directory
• Reduce onboarding through once source of data.
Blockchain redefines visibility and track and trace.Traceability
• Confluence of Blockchain and Spark/Internet of Things Redefine Lineage.
Bitcoin and Blockchain disintermediate traditional banking.Supply Chain Finance
• Emergence of the supply chain digital wallet
• An alternative to EDI
Cognitive computing eliminates the need for master data
management and standards.Interoperability
• Data is mined through patterns and translated for context through cognitive
computing. Shift from standards to process canonicals.
Use Cases We Are Working On

Network and Company Nodes
Community
Directory of
Supplier Data
Blockchain Blockchain Blockchain

The Old World View

What is Visibility?

Why Visibility Matters

State of Hands Free

© 2017 IBM Corporation IBM Confidential
Supply Chain Insights Webimar
Results of Blockchain Testing
Juanjo Ruiz
Global Business Development Lead

Global Trade DigitizationGlobal Trade Digitization
OVERVIEW
16

37
8
20
35
Border related costs are higher than
transport costs for international trade2
Export Production Cost
International Trade Cost - Transport Costs
International Trade Cost - Border related trade barriers
Retail/Local distribution margins
The cost of global trade is estimated at $1.8 trillion annually1 with
potential savings from more efficient processes of ~10%
Source: 1) Maersk Strategy Group (May 19, 2016) based on World Bank data for World Trade Costs
2) Anderson and Wincoop E. (2004) Trade costs. National Bureau of Economic Research
3) World Economic Forum: Enabling Trade Valuing Growth Opportunities 2013
The World Economic Forum3 estimates that
reducing trade barriers will significantly enable trade
*Based on export value; includes only the effect of “Border Administration” and “Telecommunication
and Transport Infrastructure” improvements
14,5
%

Example: Shipment case study
Maersk and IBM analyzed the shipment of avocados from Mombasa
to Rotterdam
We followed the shipment from Mombasa to Rotterdam and tracked the actors, people and information exchanges. The
findings illustrated the complexity and costs inherent in today’s global supply chain
18
200
100
30
1
0 50 100 150 200 250
Information exchanges
People
Actors
Avocado Shipment

The case for GTD
19
TODAY
 Inconsistent information across organizational boundaries and “blind spots”
throughout the supply chain
 Complex, cumbersome, and costly peer-to-peer messaging
 Manual, time-consuming and expensive, paper-based processes
 Risk assessments often lack sufficient information
 Clearance processes subject to fraud
 High administrative cost of handling a container shipment
TOMORROW
 Instant, secure access to end-to-end supply chain information
 Single source of the truth
 Assurance of the authenticity and immutability of digital documents
 Trusted cross-organizational workflows
 Better risk assessments and fewer unnecessary interventions
 Far lower administrative expenses and elimination of costs to move physical
paper across international borders
Exporter Authority Authority
Authority Authority
Forwarder
Carrier
ConsigneeAuthority
Terminal
Exporter Trucker Rail
Authority Authority
Forwarder
Carrier
Consignee
Terminal
Global Trade Digitization

GTD is an industry platform that connects and provides benefits to the supply
chain ecosystem
20
GTD
Platform
Customs
Systems
Logistic actors
internal systems
Supply Chain
Visibility Systems
Port Community
Systems; Terminal
Operating Systems
Transportation
Management
Authorities
Trade
Associations
Ocean
Carriers
Shippers /
Supply Chain
Actors
Supply Chain /
Transportation
Management systems
Ports and
Terminals
Freight
Forwarders
1 Shipping Information Pipeline (SIP)
Provides end-to-end supply chain visibility that
enables all actors involved in a global shipping
transaction to securely and seamlessly
exchange shipment events in real time
Paperless Trade
Digitizes and automates paperwork filings for
the import and export of goods by enabling
end users to securely submit, stamp and
approve documents across national and
organizational boundaries
2
GTD is built on an open technology stack and is underpinned by Blockchain technology
GTD is a trade platform for containerized shipping
connecting the entire supply chain ecosystem

We are confident GTD will fundamentally transform the
industry
21
Blockchain changes the game
Never before could disparate entities securely and confidently
process paperwork filings digitally
GTD is designed from the ground up as an industry
platform
The end-to-end supply chain will be involved; Maersk and IBM are
there to make it happen
The ecosystem will shape the solution
We are committed to continuously improving GTD based on
ongoing, regular input and feedback
We are moving fast
We know that speed and scale are critical and building the
network is the key to success
A powerful coalition will drive execution
IBM and Maersk have the global reach, executive commitment,
and ability to execute in markets around the world

Real-Time Cold Chain Visibility

Supply Chain Insights LLC Copyright © 2016, p. 23© 2017 Bristlecone Inc.
23
Challenges in India’s Dairy Cold Chain
How does this affect Businesses?
India, the world’s largest milk producer
ends up wasting about 20-50% of total
produce
93% of companies’ supply
chains is invisible
India’s operating cost of cold storage is High:
USD 60 per cubic metre vs USD 30 in the
West
Lack of risk mitigation leads to
high value food wastage and recurring
losses
Lack of cutting edge Tech in supply
chains
causes you to lose out on
the competitive advantage
Social, ethical and environmental issues
in supply chains leads to loss in
Market Capitalization & Brand reputation

24
What must Cold Chains focus on?
Social Responsibility Sustainability Innovations
Embrace disruptive Tech into operationsCreate a nimble and profitable businessTransparency is key to mitigate supply chain risk
REA L - T IME
CO L D CH A IN V ISIBIL IT Y
Real-Time Track and
Trace
Secured Information
Sharing
Creating Intelligence from Raw
Data
Humanized
Interaction

25
THE USE CASE

LAUNCHPAD

REAL TIME TRACK AND TRACE
FLEET TELEMATICS

SECURED INFORMATION SHARING

CREATING INTELLIGENCE FROM – LOTS OF – RAW DATA

Visit Us Online
www.SupplyChainInsights.com
www.SupplyChainShaman.com
www.BeetFusion.com
www.LinkedIn.com/company/Supply-Chain-Insights
www.Slideshare.com/LoraCecere
Follow Us on Twitter
@scinsightsllc
@lcecere
Attend a Live Event
www.SupplyChainInsightsGlobalSummit.com
www.SupplyChainInsights.com/The-Shamans-Circle
Engage with Us!

About Lora Cecere
• Founder of Supply Chain Insights
• “LinkedIn Influencer”
• Guest blog for Forbes
• Author of 5 books: Bricks Matter (2012), Shaman’s Journal (2014),
Supply Chain Metrics That Matter (2014), Shaman’s Journal (2015),
Shaman’s Journal (2016)
• Partner at Altimeter Group (leader in open research)
• 7 years of Management Experience leading Analyst Teams at Gartner
and AMR Research
• 8 years Experience in Marketing and Selling Supply Chain Software at
Descartes Systems Group and Manugistics (now JDA)
• 15 Years Leading teams in Manufacturing and Distribution operations for
Clorox, Kraft/General Foods, Nestle/Dreyers Grand Ice Cream and
Procter & Gamble.
Contact Information:
• Email: lora.cecere@supplychaininsights.com
• Blog: www.supplychainshaman.com (15,000 pageviews/month)
• Forbes: www.forbes.com/sites/loracecere
• Twitter: twitter.com/lcecere (7,800 followers)
• LinkedIn: www.linkedin.com/in/loracecere (165,000 followers)
• LinkedIn Influencer: www.linkedin.com/today/author/446631

Five Themes:
1.Supply Chains to Admire
2.Changing Economies and Changing Times
3.Digital Supply Chain Innovation to Power Growth
4.Driving Supply Chain Transformation
5.Leadership and Supply Chain Talent
Register Now!
• Registration is $1750 and includes breakfasts, lunches and
receptions
• Seating is limited to 150 attendees
• Discounted room rates at The Ritz-Carlton expire August 15th
• Email us at regina.denman@supplychaininsights.com
www.SupplyChainInsightsGlobalSummit.com
Fifth annual event  Designed for line-of-business leaders  Explore the future of business processes

Three Options: Next-Generation Supply Training
SEVEN COURSES OFFERED
1. Supply Chain Metrics That Matter
2. Building the Customer-Centric Supply Chain
3. The Market-Driven Value Network Journey
4. Making the Digital Pivot
5. End-to-End Supply Chain Orchestration
6. Driving Improvement in Decision Making Through Supply Chain Planning
7. Building Agility Through Horizontal Processes
www.SupplyChainInsights.com/Services/Training

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