DLT & The Supply Chain
DLT & The Supply Chain
Dr Hannah Rudman
Wallet.Services’ Strategic Transformation Director Dr Hannah Rudman considers the opportunities with SICCAR for supply chains across manufacturing and resources.
Wallet.Services SICCAR software platform, toolkit, and templates with its distributed ledger technology (DLT) architecture can increase the speed, scale, and visibility of supply chains. We developed a blockchain solution to transparently and securely track assets in a multi-party supply chain environment. SICCAR enables organisations to collaborate on sensitive data and support multiple parties to work together with consensus, confidentiality, resiliency and scalability. All transactions about the asset are sequentially ordered, visible and immutable, creating a permanent record – a single source of truth - for accountability. The data recorded is digital, and so eliminates the need for paper.
Wallet.Services is working with an oil and gas consortium to enable them to create a digital twin journey and record of physical assets in their manufacturing supply chain. Reducing paperwork - and the delays operating with it creates - can be achieved by developing digitally native processes in the oil and gas sector. The consortium’s project with SICCAR is predicted to reduce costs by 3+%: in a multi $tn industry, that 3+% is $bns saved.
DLT also is becoming a catalyst for Internet of Things (IoT) sensors’ proven real-time monitoring and tracking capability. Using IoT with DLT and digitised supply chain management tactics, we can facilitate track-and-trace accuracy, and the transparency of the distributed ledger increases quality and speed in supply chains whilst eradicating counterfeits.
Deloitte’s latest global blockchain survey, Breaking Blockchain Open, of 1000 executives reveals that 53% of enterprises have DLT pilots focussing on supply chain improvements, and 51% of enterprises have DLT projects looking at IoT, suggesting that most are looking to get value out of IoT using blockchain. Boston Consulting Group published Pairing Blockchain with IoT to Cut Supply Chain Costs in December 2018. They analysed how much a $1B electronics equipment company could save by implementing blockchain-as-a-service, a decentralized track-and-trace application, and 30 DLT nodes that share data among key supply chain stakeholders. The hypothetical study found that the company could save up to $6M a year.
“1 million people each year die from counterfeit drugs”
The World Health Organization (WHO) approximates that 1 million people each year die from counterfeit drugs, and up to 30% of pharmaceutical products sold in emerging markets are counterfeit according to a recent study by DHL Research. DHL is developing a blockchain-based track-and-trace serialization prototype comprising a global network of nodes across six geographies.
By 2023, blockchain will support the global movement and tracking of $2T of goods and services annually according to a recent Gartner report. With a third of the world’s food currently wasted or recalled because its poor quality, improving quality in supply chains also has a very human imperative, and Wallet.Services is excited to be working with food and agriculture businesses in Scotland’s North East region to accelerate this with DLT and blockchain.
If you’d like to learn more about how distributed ledger technology is being used in maufacturing and resoruces industries, sign up to attend our webinar on May 16th.