NEW YORK (Reuters) – International Business Machines Corp’s (IBM.(N) announced on Monday that a new blockchain the network is focused on the improvement of the manual and the cumbersome supply-chain management.
FILE PHOTO: A man stands in the vicinity of an IBM logo at the Mobile World Congress in Barcelona, Spain, February 25, 2019 at the latest. REUTERS/Sergio Perez/Photo File
Supply chain management involves the monitoring of the flow of goods and services, such as the tracking of the movement and storage of raw materials, inventory and finished goods. It has been identified as one area that will be able to take advantage of blockchain technology, and a shared database, which is maintained by a network of computers that are connected to the internet.
The technology research firm Gartner Inc. said in 2023, blockchain, in support of the global movement and tracking of the $2 trillion in goods and services each year.
With the new blockchain the network is called the Trust Your Supplier and in addition to IBM’s, the other founding members of the Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric, and Vodafone.
Chainyard a blockchain dedicated company has been providing the technology and the structure of the network, with the help of IBM’s blockchain platform. Other companies, however, set by the provider of the data network and to contribute their expertise to expand the network.
The traditional methods of management of vendors, are often associated with the laborious and time-consuming manual processes, making it difficult to verify the identity and keep track of the documents, such as ISO certifications, banking information, tax declarations, and certificates of insurance, and IBM, he said.
With the help of a local approach, and an unalterable audit trail will be built on the blockchain, and the company said it would eliminate the manual, time-consuming processes, and reduce the risk of fraud and errors.
“The validation and introduction of new sources of supply is a key pain point for almost every business that relies on a robust supply chain in order to do that,” Marie Wieck, general manager of IBM’s Blockchain, said in an e-mail to Reuters.
“By moving this process to the blockchain, we will take up a lot of the burden and shifting it to the web, where it can be shared in real-time, safe, and efficient manner.”
Wieck said IBM’s procurement organization the projects, a 70-to 80-percent reduction in the amount of time it takes to get new suppliers on board, as well as an estimated 50 per cent reduction in the administrative costs of the company.
Our 18,500 suppliers around the world, and said that it will begin to Trust Your Supplier’s network, in the first instance, bring it to the board, with 4000 of his own North-American suppliers in the next couple of months. The blockchain is limited to the availability of the existing members, and is scheduled to be commercially launched in the third quarter of 2019.
Reporting by Gertrude Chavez-Dreyfuss; editing by Grant McCool