International Business Machines Corp (IBM) and blockchain consultancy Chainyard have announced a new blockchain network for supply chain management designed to improve supplier validation, onboarding and life cycle information management, IBM said in a press release on Aug. 5 (Monday).
The new blockchain network is called Trust Your Supplier. Alongside IBM, the other founding participants include Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone, the release indicated.
Traditional methods of managing suppliers involve manual processes, which makes it difficult to verify identities and track documents like ISO and tax certifications. By using a decentralized approach and an audit trail built on blockchain, Trust Your Supplier is designed to save time and help reduce the risk of fraud and errors.
By 2023, blockchain is expected to support the global movement and tracking of $2 trillion of goods and services annually, the release said, citing research from technology research firm Gartner Inc.
“Blockchain has the ability to completely transform how companies onboard and manage their supplier network for the future,” Renee Ure, chief supply chain officer for Lenovo‘s data center group, said in the release. “Through Trust Your Supplier, both buyers and suppliers will see the procurement benefits of blockchain through reductions in cost, complexity and speed.”
The IBM Supply Chain Business Network can connect to Trust Your Supplier using open industry programming interfaces for access to existing verified supplier information.
“Working with IBM and Chainyard on this blockchain initiative represents a great opportunity for Nokia to further enhance our suppliers’ experience and optimize the onboarding process,” said Sanjay Mehta, vice president procurement, Nokia. “Using the latest technology to address a classical challenge will be of benefit for everyone, and further increase the speed of using innovative solutions.”
In May, IBM announced the launch of a new supply chain management solution deploying artificial intelligence (AI) to detect anomalies in the supply chain. Its Business Transactional Intelligence (BTI) tool is now available to mitigate the risk of supply chain disruptions. As part of IBM’s Supply Chain Business Network, the BTI tool facilitates access to data from supply chain processes, including procure-to-pay and order-to-cash interactions.