Grid, a new project from the Linux Foundation, will offer developers tools to create supply chain-specific applications running atop distributed ledger technology.
Check out the Linux Foundations new Blockchain scheme.
Within the Hyperledger project they have created a group of developer tools which let developers create supply chain orientated applications. This platform runs on top of the existing distributed ledger technology (DLT).
The first offering will be that of modular software and smart contract features. This will help solve problems such as tracking and tracing dispatched products as well as E-signatures for Bill’s of Laden and Bills of landing.
Its a promising initiative that is targeting a growth area in that of the supply chain.
The goal for the Hyperledger Grid Project as its called is to accelerate the development of effective solutions for supply chain challenges.
DLT is a technology that is primarily aimed at supply chain management, as well a inter-border payment processing.
Take medical packaging as an example. Under IDMP (Identification of medical products) standards there are five ISO identifiers that make up a unique traceable number. This can be used to track drugs and samples in transit.
It would seem the main attraction for businesses is that this kind of Blockchain technology is that it enables them to share often complex data across organisational boundaries. It would also allow them to maintain the accuracy and rigor of such data.
This could vastly improve efficiency for say medical packaging companies or those involves in complicated cross border supply chains. Just last week SAP announced a supply chain tracking service based on Blockchain technology. It enables drug distributors to check and authenticate pharmaceutical packaging that has come back from hospitals and pharmacies.
Unfortunately, the Hyperledger Grid Project has been moved to end-of-life status since March, 2023. Although its code is still available in GitHub, it’s already a read-only for those who are interested in learning how it works. Still, block-chain technology can still be a great help in supply chain concerns. How?
Supply Chain Concerns and Blockchain Innovation
Blockchain technology has transformed the way manufacturer manage their supply chains. It makes them more efficient and accountable. This revolutionary innovation allows the complete recording of product lifecycle information and real-time sharing among supply chain members. It addresses supply chain concerns. This unchangeable flow of information combats the "bullwhip effect". It ensures accurate demand transmission from consumption to production.
Enhancing Transparency in Supply Chains
Blockchain simplifies supply chain management. It creates an unalterable ledger of all activities, documentation, and goods movements. This transparency reduces fraud, speeds up dispute resolution, and enhances accountability.
Smart contracts automate tasks. They reduce manual processes, intermediaries, and paperwork, leading to cost savings and efficiency. You can maintain data integrity through cryptographic techniques. As a result, you safeguard sensitive information such as payment details and logistics contracts. Faster payment settlements are achieved by executing transactions directly between parties, eliminating intermediaries.
- Real-life Example: UPS & Inxeption Zippy. UPS partnered with Inxeption to create Inxeption Zippy. Zippy automates supply chain processes. It ensures secure and transparent transactions. As a result, you reduce the risk of fraud and enhance trust among participants.
Ensuring Food Safety
- Real-life Example: Walmart. Walmart collaborates with IBM to trace food products within seconds. With this collaboration, they improve food safety and quality. At the same time., they expand the use of blockchain technology to other products like leafy greens and pork.
Enhancing Pharmaceutical Security
Blockchain technology fights drug counterfeiting. How? By providing an immutable history of each medication, improving patient safety. High-value drugs' authentication is facilitated, enhancing supply chain financing and data security. Recall management becomes efficient with unique identifiers recorded on the blockchain. Thus, it enables quicker identification of affected products.
- Real-life Example: Pfizer & Chronicled. Pfizer collaborates with Chronicled to improve pharmaceutical supply chain security and traceability. This reduces the risk of counterfeit drugs in the market.
Securing Manufacturing Processes
Blockchain secures intellectual property by recording patents, trademarks, and copyrights. With this, you can reduce unauthorised access and infringement. Also, you can improve inventory tracking for raw material sourcing and product delivery. This enhances brand reputation and customer satisfaction.
Moreover, you can mitigate risk by providing lenders with visibility into supply chain activities. As a result, you can reduce paperwork, delays, and manual processes. This will result in cost savings and operational efficiency.
- Real-life Example: Ford & Automotive Blockchain Consortium. Ford's Automotive Blockchain Consortium automates supply chain processes. This improves transparency and trust among suppliers and customers.
Ethical Sourcing in Mining
Blockchain tracks the provenance of raw materials. It prevents unethically sourced minerals from entering the supply chain. Moreover, it supports sustainability by measuring environmental impact and highlighting ethical practices.
Certification and compliance are facilitated by securely storing certifications and audit records. Blockchain identifies and addresses social and environmental issues associated with mining operations. At the same time, it promotes ethical practices and enhances the reputation of mining companies.
- Real-life Example: BHP & MineHub. BHP partners with MineHub to digitise its supply chain processes for mineral concentrates. As a result, they ensured transparency, prevented fraud, and streamlined operations.
Conclusion
Blockchain technology is a versatile solution addressing various concerns and challenges across different supply chain sectors. It ultimately improves transparency, efficiency, and accountability. In a world with evolving Supply Chain Concerns, the innovation of blockchain promises a brighter future for supply chain management.
