IBM and Maersk Demo Blockchain Cross-Border Supply Chain Solution
Summary
TLDRIBM 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%.
Outlines
🚢 Simplifying Global Trade with Blockchain
This paragraph introduces the collaboration between IBM and Mersk to revolutionize global trade through blockchain technology. It highlights the current issues in global trade, which has relied on manual, paper-based processes since the introduction of shipping containers in 1956. These processes cause inefficiencies and delays, with information locked in silos. The goal of IBM and Mersk's partnership is to digitize and streamline the supply chain, creating trust and transparency through a distributed, permission-based platform accessible to all stakeholders.
📦 Blockchain for Seamless Supply Chain Communication
The paragraph explains how 90% of global trade is still reliant on outdated, manual processes, contributing to delays and inefficiencies. Blockchain is proposed as a solution to address the complexities in point-to-point communication between various entities like land transportation providers, freight forwarders, customs brokers, governments, ports, and ocean carriers. IBM and Mersk’s blockchain platform is designed to exchange data and handle document workflows, ensuring tamper-proof, end-to-end tracking of shipments, which eliminates the need for costly and error-prone point-to-point communication.
🌍 Global Trade Revolution: Initial Blockchain Test
This section details the real-world testing of the blockchain platform by Mersk, involving the shipment of a container of flowers from Kenya to the port of Rotterdam. The test revealed that the traditional process required nearly 200 communications. By digitizing this workflow using blockchain, the system can track millions of container journeys and integrate customs authorities across trade lanes. This demonstrates the platform's potential to improve trust, security, and efficiency in the supply chain.
📑 Simplified Document Workflow Using Smart Contracts
Here, the paragraph focuses on the logistics and documentation process for exporting goods, using a shipment of flowers as an example. It describes how the grower submits a packing list via PC or mobile device, which triggers a smart contract that enforces an approval workflow between export agencies. All participants have real-time visibility of the status updates. Blockchain ensures that all documents and actions are securely shared, such as signatures, inspections, and approvals, eliminating any potential delays in the supply chain.
🔐 Blockchain’s Role in Securing the Supply Chain
This paragraph explains how blockchain secures the data exchange in the supply chain by creating a tamper-proof repository for documents and shipping events. This system not only prevents delays and fraud but also allows stakeholders to monitor the location and condition of the goods in real time. The paragraph highlights the benefits of blockchain in enhancing efficiency, reducing costs, and increasing transparency in global supply chains.
📈 Economic Impact of Blockchain on Global Trade
The final paragraph outlines the broader economic implications of blockchain technology in global trade. According to the World Trade Organization (WTO), reducing barriers in international supply chains could boost global GDP by nearly 5% and increase total trade volume by 15%. This underlines the transformative potential of blockchain, not just in streamlining logistics but in contributing to worldwide economic growth. For more information, the reader is directed to IBM’s resources.
Mindmap
Keywords
💡Blockchain
💡Global Trade
💡Supply Chain
💡Permissioned Platform
💡Smart Contract
💡Event Data
💡Customs Authorities
💡Document Workflow
💡Tamper-Proof System
💡End-to-End Tracking
Highlights
IBM and Maersk are partnering to digitize and simplify global trade using blockchain technology.
Blockchain creates trust and transparency in the global supply chain.
Currently, 90% of goods in global trade are carried by the shipping industry.
Global trade is slowed by manual, paper-based processes and point-to-point communication across various organizations.
IBM and Maersk are using a distributed, permissioned blockchain platform accessible to the entire supply chain ecosystem.
Blockchain technology provides a tamper-proof system for digitizing trade workflows and tracking shipments end-to-end.
The platform aims to eliminate inefficiencies, such as costly point-to-point communications.
In a test by Maersk, tracking a single container of flowers from Kenya to the port of Rotterdam involved nearly 200 communications.
Blockchain allows all parties in the supply chain to see the status of documents and goods in real time.
The system uses smart contracts to initiate and enforce workflows, such as export approvals between different agencies.
Blockchain captures and shares key data such as document submissions, container locations, and next steps.
For perishable goods like flowers, blockchain reduces delays and minimizes the risk of missteps.
The blockchain system offers secure data exchange and a tamper-proof repository for documents and shipping events.
The technology could save billions annually by reducing fraud and delays in the supply chain.
According to the WTO, reducing international supply chain barriers could increase global GDP by 5% and trade volume by 15%.
Transcripts
the following is a demonstration of how
IBM and mesk
are partnering to digitize and simplify
global trade using blockchain to create
trust and transparency in the supply
chain
global trade functions much as it has
since the introduction of the shipping
container in 1956 manual paper-based
processes are still common and
information about the status of goods is
locked away in organizational silos
today 90% of goods in global trade are
carried by these shipping industry with
the supply chain slowed by the
complexity and sheer volume of
point-to-point communication across a
loosely coupled web of land
transportation providers freight
forwarders customs brokers governments
ports and ocean carriers IBM and murska
are addressing this problem with a
distributed permission platform
accessible by the supply chain ecosystem
designed to exchange event data and
handle document workflows mirskiy and
IBM are employing blockchain technology
to create a global tamper-proof system
for digitizing trade workflow and
tracking shipments end to end
eliminating frictions including costly
point-to-point communications the
collaboration will launch with the
potential ability to track millions of
container journeys per year and
integrate with customs authorities on
selected trade lanes in a recent test by
musk shipping a single container of
flowers from Kenya to the port of
rotterdam resulted in a stack of nearly
200 communications using this example we
will examine how blockchain has been
implemented to create trust and security
in the digitized document workflow and
improve the efficiency of global supply
chains
here we can see each distinct entity
involved in the transaction the growers
export to authorities ports customs and
importers shipping from the port of
Mombasa requires signatures from three
different agencies approving the export
and six documents that describe the
origin chemical treatments quality of
the produce and customs duties firstly
using a PC or mobile device the King in
pharma submits a packing list that
becomes visible to all participants
this action initiates a smart contract
that enforces an export approval
workflow between the three agencies as
each agency signs the status is updated
for all to see simultaneously
information about the inspection of the
flowers the ceiling of the refrigerated
container the pickup by the trucker and
the approval from customs is
communicated to the port of Mombasa
allowing them to prepare for the
container all actions relating to the
documents and the physical goods are
captured and shared which documents were
submitted when and by whom where the
flowers are and who is in possession of
them and the next steps in their journey
flowers are perishable so it's crucial
that there are no delays or missteps
blockchain provides secure data exchange
and a tamper proof repository for these
documents and shipping events this
system could significantly reduce delays
and fraud saving billions of dollars
annually and according to the WTO
reducing barriers within the
international supply chain could
increase worldwide GDP by almost five
percent and total trade volume by 15
percent for more information on how i BN
can help make blockchain right for your
business please visit IDM comm slash
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