IBM and Maersk Demo Blockchain Cross-Border Supply Chain Solution

Summary

IBM and Maersk are collaborating to digitize and streamline global trade using blockchain technology. The current supply chain system, heavily reliant on manual, paper-based processes, creates inefficiencies and delays. By employing a distributed, permission-based blockchain platform, IBM and Maersk aim to improve transparency, reduce communication frictions, and track shipments end-to-end. This tamper-proof system facilitates real-time data sharing between key supply chain entities, significantly reducing delays and potential fraud. The partnership promises to enhance global trade efficiency and could boost GDP and trade volume worldwide.

Takeaways

• 🤝 IBM and Maersk are partnering to digitize and simplify global trade using blockchain technology.
• 🚢 Global trade is still largely manual and paper-based, with information siloed across different organizations.
• 📦 Around 90% of goods in global trade are transported by the shipping industry, and supply chains are slowed by complex, point-to-point communication.
• 🔗 The IBM-Maersk partnership aims to create a distributed, permissioned blockchain platform to exchange data and handle document workflows.
• 🔒 Blockchain ensures a tamper-proof system for tracking shipments, providing transparency and trust across the supply chain.
• 📊 The system will allow tracking of millions of container journeys per year and is integrated with customs authorities on selected trade routes.
• 🌸 In a real-world test, a container of flowers from Kenya to Rotterdam involved nearly 200 communications, highlighting inefficiencies that blockchain aims to solve.
• 📄 Blockchain helps automate processes like export approvals, document submission, and customs clearance with real-time status updates for all participants.
• ⏳ The system ensures timely and efficient handling of shipments, especially for perishable goods like flowers, reducing delays and errors.
• 💰 The adoption of blockchain in global trade could save billions annually by reducing fraud and delays, and the WTO suggests it could boost global GDP by 5% and trade volume by 15%.

Q & A

What is the primary goal of the partnership between IBM and Maersk?

The primary goal of the partnership between IBM and Maersk is to digitize and simplify global trade by using blockchain technology to create trust and transparency in the supply chain.

What challenge does global trade currently face according to the script?

Global trade still relies on manual, paper-based processes, with information locked in organizational silos, making it inefficient and complex.

What percentage of goods in global trade are carried by the shipping industry?

According to the script, 90% of goods in global trade are carried by the shipping industry.

How does blockchain technology help improve the supply chain?

Blockchain provides a tamper-proof system for digitizing trade workflows, tracking shipments end-to-end, and enabling secure data exchange. It reduces friction, costly point-to-point communications, and improves the efficiency of global supply chains.

What role does a smart contract play in this blockchain system?

A smart contract in this blockchain system enforces an export approval workflow, ensuring that all participants can simultaneously see the status updates as documents are approved by different agencies.

What are the benefits of using blockchain for tracking shipments?

Using blockchain for tracking shipments allows for real-time updates on document submissions, approvals, and physical goods location. It helps reduce delays, missteps, and fraud, ultimately saving costs.

How did the test case with Maersk shipping flowers from Kenya to Rotterdam demonstrate the system's effectiveness?

The test case showed that blockchain significantly reduced the complexity of communication, as nearly 200 interactions were needed for a single container shipment. The blockchain system streamlined this process, ensuring transparency and efficiency.

What specific documents are required when shipping flowers from Kenya, as described in the script?

When shipping flowers from Kenya, documents such as export approvals, chemical treatments, quality certificates, and customs duties descriptions are required.

How does blockchain help prevent delays in the shipment of perishable goods like flowers?

Blockchain enables real-time tracking of documents and goods, ensuring all necessary approvals are completed promptly and transparently, which is crucial for preventing delays in the shipment of perishable goods.

What potential economic benefits could result from reducing barriers within the international supply chain using blockchain?

According to the WTO, reducing barriers in the international supply chain through blockchain could increase worldwide GDP by almost 5% and total trade volume by 15%.