IBM is partnering with other companies to roll-out a massive blockchain-based program that will improve the supply chain management of 4,000 North American companies. Improved trackability, smaller administrative costs and less risk of fraud are the main benefits provided by the new blockchain-based solution. This according to a press release, August 5, 2019.
Leading U.S. tech company IBM has just announced a new blockchain initiative that wants to improve corporate supply chain management.
According to IBM, the blockchain network called “Trust Your Supplier” will completely cut manual processes, all the while lowering fraud and mistakes.
Alongside IBM, it will feature other companies such as Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone.
The underlying technology will be provided by blockchain firm Chainyard, while the other partners will provide their data to the network and dispense their knowledge to increase the scope of the network.
Increased Supply Chain Efficiency
Supply chain management has been identified as one of several tasks that can benefit from blockchain integration. According to Gartner inc., a U.S.-based research and advisory company, by 2023 blockchain in this field will account for up to $2 trillion annually.
Traditional supply chain management involves complex manual calculations and processes which often make the whole task slower and harder, especially when tracking legal documents such as ISO certifications, bank account information, tax certification and certificate of insurance.
IBM forecasts over a 70% reduction in time for the on-boarding process of new customers, and a 50% cut in administrative costs, a big improvement in terms of efficiency for the whole business.
IBM enjoys 18,500 suppliers worldwide and is planning to launch the Trust Your Supplier program in the third quarter of 2019 for 4,000 of its own North American suppliers.
Earlier this month IBM announced a partnership with Seagate to improve the trackability of their goods around the globe. As the world leader in external hard disks, Seagate sends its products all across the world and wants to harness the power of distributed ledger to ensure customers can track their product as well as verify the authenticity of the piece