blockchain in the service parts supply chain
TRANSCRIPT
Contents
Our business 03IBM in the past and in the future 03Service Parts Operations in IBM GTS 05Support as a Service 07
Blockchain explained 08A word on TradeLens 10
Cross-bordering parts 12A customs invoice 12Process and application 13
Key take-aways 16
3
IBM has been on the forefront of developing computing technology
• Mainframes (from S/360 in 1964 to the Z14 in 2017)
• IBM PC in 1980
• RISC computing 1992
• Quantum computing
IBM is in business over 100 years and many inventions have been very relevant to the world we live in
IBM has been at the basis of many software standards & platforms
• FORTRAN, 1957
• Relational Databases (1970, DB2)
• Operating systems (IMS, CICS, TSO)
IBM is now working on this with others on Open Source platforms (Linux, Blockchain) as we can’t do it alone!
IBM has been at the basis of innovations that have had a big impact to the world
• Developed the DRAM chip in 1967
• Developed the magnetic stripe card in 1969
• Helped set the first man on the moon
IBM researchers have at times been recognized for their contributions
• Leo Esaki, 1973Electron Tunneling
• Binnig & Rohrer in 1986 for Scanning tunneling microscopy
• Bednorz & Müller in 1987 for high temperature super-
44
Analytics (big data)
From DB2/QMF into machine learning
IBM also wants to be relevant to society in the future and is working on some exciting technologies
Artificial intelligence with WATSON
Augment human judgment
Blockchain technology
This is not Bitcoin!
This technology will revolutionize the supply chain and will develop networks of companies
4
Security – becoming ever more important
IBM principle: the data of our clients is precisely that
IBM will help derive intelligence from your data but will not use it itself
IBM Cloud
Service Parts Organisation – who are we?
4PL – A fourth-party logistic provider, 3PL - a third party logistic provider
General Organization Overview
5
SPO Value Proposition
Facts & Highlights 3 worldwide hubs 200,000 part numbers (50,000 non-IBM) 30 million movements a year WW ± 400 parts suppliers >750 stock locations WW (180 countries) 96% availability in 58 countries 99.9% inventory accuracy SLA support from 2hrs to 2nd business
day Transport / warehousing has been
outsourced Globally managed and integrated
processes and systems where possible, geographical solutions where needed
© 2018 IBM Corporation
Blockchain Technology:Registering a transaction on the blockchain uses a chain; tampering with data will break the chain
9
Scalability
Hyperledger Fabric and Cloud based run-time environment allow for the application to see increase usage over time without concerns
Flexibility of smart contract
Everything is the same yet there are always small differences, e.g. from country to country
Visibility
To all actors of all documents as needed(permissioned blockchain)
24/7 access to documents
Auditability and trust
Modification of data not possible without detection
o Clear liability in case of disputes
o Official entities can get access to the data in the blockchain
Advantages of applying blockchain technologypowered by Hyperledger Fabric
Automated data interfaces from / to all parties within the blockchain environment
9
TradeLens Overview Introduction
Data trapped in organizational silosInformation is held in paper and various digital formats across dozens of service providers along the supply chain, requiring complex, cumbersome, and costly peer-to-peer messaging. The result is inconsistent information across organizational boundaries, latency in obtaining shipment visibility, and blind spots that hinder the efficient flow of goods.
Manual, time-consuming, paper-based processesThe collection and processing of up-to-date data, as well as inefficient trade document exchange, requires manual checks and frequent follow-ups and results in errors, delays and high compliance costs. Late filings are common due to missing information.
Clearance takes too long and is often subject to fraudRisk assessments by customs authorities lack sufficient and trusted information resulting in high inspection rates, added prevention measures against fraud and forgery, and delayed customs clearance.
High costs and poor customer serviceThese challenges have significant downstream repercussions. The inability to forecast and plan effectively, address supply chain disruptions in real-time, and share trusted information across the supply chain leads to excessive safety stock inventory, high administrative costs, operational challenges, and ultimately poor customer service.
GLOBAL TRADE IS HIGHLY INEFFICIENT AND BURDENED BY PAPER-BASED PROCESSES Inland Transportation
Shippers / Beneficial Cargo Owner
Supply Chain Visibility Systems
Trade Associations
Supply Chain / Transportation Management Systems
Authorities
Financial / Insurance Services
Port Community Systems; Terminal Operating Systems
Ports and Terminals
Freight Forwarders /
3PLs
Customs Systems
Ocean Carriers
Customs Brokers
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27-May-19 11
https://www.youtube.com/watch?v=tdhpYQCWnCw
TradeLens Overview Introduction
Connects the ecosystemBrings together all parties in the supply chain - including traders, freight forwarders, inland transportation, ports and terminals, ocean carriers, customs and other government authorities, and others - onto a Blockchain-based platform with a secure permission and identity framework
Drives true information sharingProvides for the seamless, secure sharing of real-time, actionable supply chain information across all parties to a trade - encompassing shipping milestones, cargo details, trade documents, the structured data embedded in trade documents, customs filings, sensor readings, and more
Fosters collaboration and trustEnables the digitization and automation of the cross-organization business processes integral to global trade, including import and export clearance, with Blockchain ensuring secure, auditable, and non-repudiable transactions
Spurs innovationLays the foundation for ongoing improvement and innovation through an open, non-proprietary API, the use of standards and promotion of interoperability, and the launch of an Applications Marketplace that parties can use to build and deploy TradeLens-powered applications for themselves, their partners, and their customers
THE TRADELENS PLATFORMDigitizing the global supply chain
Inland Transportation
Shippers / Beneficial Cargo Owner
Supply Chain Visibility Systems
Trade Associations
Supply Chain / Transportation Management Systems
Authorities
Financial / Insurance Services
Port Community Systems; Terminal Operating Systems
Ports and Terminals
Freight Forwarders /
3PLs
Customs Systems
Ocean Carriers
Customs Brokers
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THE PLATFORM IS BUILT ON AN OPEN TECHNOLOGY STACK AND IS UNDERPINNED
BY BLOCKCHAIN TECHNOLOGY
Cross border shipments require a number of steps
start
Pull & Pack
Status: Case packed
BLOCKCHAIN
Packed Case data
Provide COS owned data
Customs Invoice Data
Ship Case
Airway bill
CustomsClearance
Import approval
Receive Case
TMS
Pay Duty /Intrastat / Extrastat
Push to bin /ship to final
dest.END
IBM
/ 3P
LIn
vent
ory
Ow
ner
MRN
ExportApproval
Ledger 1
Ledger 2
IBM / DHL
Inventoryowner A
HLF
Warehouse System
OwnerSystem
ExportBroker
Local Customs
InvoicePrint module
PC
PC ID
ID
EA
EA
Import Broker
Local Customs
AB
AB
Transport Management
IA
IA
Warehouse System
Shared ledger allows for increased trust in data
Pilot implementation approach, MVPThis environment makes import clearance data available to carriers and brokers in an automated way, fitting their business
BLOCKCHAIN
IDDE
Gateway
Customs Invoice Data
PackedCase Data
ShipmentCase Data
Transportation Management
Enrichment interfaces
Service Parts ERP
Product Classification
DHL Express(carrier)
Individualimport broker
Automatedinterface (push)
Semi-automatedinterface (pull)
Key take-aways
• Blockchain technology for Supply Chain Management is mature and new applications of the technology are being developed and will become available in the next five years, potentially causing the business to transform significantly
• Working together with multiple parties is what drives the need for blockchain technology and also what complicates the ability to create successful applications –competitors will need to work together
• QUESTIONS?
Thank you!
Jaap HazewinkelManager of Strategy and TransformationTSS Service Parts Operations
—[email protected]+31 6 1250 6288ibm.com