blockchain supply chain - umtri · global trade solution based on blockchain ... 90% of goods in...
TRANSCRIPT
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Future of Automotive Supply Chain Senthil VirthachalamIBM Global Automotive Center of Competence
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Introduction
Senthil Virthachalam Senior Managing ConsultantIBM, Global Business [email protected]+1 248 635 2810
Over 20 years of experience in automotive. My industry experience includes most of global automotive OEMs, Tier I suppliers, electronics and high-tech. My previous work experience includes program management at Tenneco Inc., supplier management, product development at Daimler Chrysler and product development at AshokLeyland (India). I graduated from Michigan State (MBA) and National Institute of technology (Engineering)
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Agenda
§Supply Chain Future POV
§What is Blockchain?
§Use Cases
§Q&A
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What is Blockchain?
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Blockchain is…
with shared business
processes
a trusted, distributed ledger
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… inefficient, expensive, vulnerable, lack of transparency
Problem with business networks today
Party C’s records
Auditor records
Party B’s records
Party D’s records
Bank records
Party A’s records
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Party C’s records
Auditor records
Party B’s records
Party D’s records
Bank records
Party A’s records
Blockchain
distributed control, shared business process, single source of truth
Solution with shared, replicated, permissioned ledger
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Shared Business Processes
§ Add control and visibility to shared processes
§ Automate network interactions
§ Participate directly with network members
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Shared system of record. Permissioned
access within own network.
Immutable & Traceable
Business terms embedded in transaction database & executed with transactions
All parties agree to network verified transaction by Consensus
Ensures appropriate visibility; transactions are
secure, authenticated & verifiable
Smart contract
Privacy Trust
Shared ledger
Key concepts of Blockchain
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Savetime
Removecost
Createtransparency
Reducerisk
Transaction processing from days to near instantaneous
Overheads and cost intermediaries
Access to data among all
participants
Tampering, fraud & cyber crime
Blockchain benefits
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IBM is collaborating to transform fundamental business processes across industries
11
To enable multiple parties to work together leveraging permissions and identity, to ensure data and transactions are protected and consistent
Open
Trusted
For Business
Blockchain must be built on robust technology environments providing security, confidentiality, auditability, reliability and scalability
Fundamental industry technologies, processes and communities need Open source, Open governance, Open ecosystems
IBM Blockchain Vision
Core Principles
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§ Linux Foundation project announced December 2015 with 17 founders
§ The Hyperledger Project is a collaborative effort to advance Blockchain technology by identifying and addressing important features for a cross-industry open standard for distributed ledgers that transform the way business transactions are conducted globally
§ Open source and open standards-based
Enable adoption of shared ledger technology at a pace and depth not achievable by any one company or industry
QUICK FACTSCompanies in Announcement: 17
Now 120+
Inquiries to Join
2,3005x more than largest in history
It takes a Community: Hyperledger Project
https://www.hyperledger.org/projects
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Hyperledger Project Members
Source: https://www.hyperledger.org/about/membersUpdated June 2017
Premier General
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Use Cases
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Maersk and IBM announceglobal trade solution basedon Blockchain
http://www-03.ibm.com/press/us/en/pressrelease/51712.wss
90% of goods in global trade are carried by the ocean shipping industry each year.
But global supply chains are plagued by inefficiencies caused primarily by:• ineffective information sharing across organizational
boundaries• Manual, paper-based processes
https://www.youtube.com/watch?v=dcddYatMCGQ
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Global Trade Digitization Network
An open, extensible platform for sharing shipping events, messages, and documents across all the actors and systems in the supply chain ecosystem.
Important principles• Detailed information remains under the control of the owner• As neutral as the Internet• Fault tolerant• Everyone can work in their own systems
Provider of interface: value-add partners
Event publishers & subscribers
GTDPlatform
Customs Dashboard
Logistic actors internal systems
Supply Chain Visibility systems
Port community systems
Transportation management.
Shippers
Authorities
Trade Associations
Carriers
Supply Chain Actors
Terminals
Supply Chain Management
Maersk collaboration video
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How to accelerate traceability from weeks to minutes/seconds?
Walmart & IBM collaborate on Food Safety, traceability & transparency
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PorkScalability
MangoNetwork Breadth
https://www-03.ibm.com/press/us/en/pressrelease/50816.wss https://youtu.be/MMOF0G_2H0A?t=6m3s
Walmart & IBM are working on 2 pilots in China and USA
Walmart collaboration video
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Boschand IBMdevelop ParcelChain Proofof Concept
BasedonHyperledger–Opensourceandopenstandards-based–Modularandscalablearchitecture–Permissioned–Performant–Privacy&confidentialityassured
Advantages– Transparencyonproductlogistics–Potentialcostsavings– Improvedfakedetectiongranularity– Identificationofgraymarketimports– Extensibletootherbusinesscases
Blockchain Nodes
Bosch IoTCloud
Data CenterBosch
Public CloudDistr.A
DataCenterDistr.B
PublicCloudLogistic
Transactions
Description Parcel
ContainerID _cont_12345
Product ID _bosch_part12345
ProdDate 01.10.201614:45:22
Origin China
Destination DistributorA–Lissbon
Blockchain Ledger
Block1#0155fa4bee112ce467398
H
HashFunction
Ledger
CI/AD | 02/13/2017© Robert Bosch GmbH 2016. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.
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https://youtu.be/jY8HFRs6Y4s?t=17m32s
Bosch collaboration video
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Q&A