BLOCKCHAIN SUPPLY CHAIN DISRUPTIONS

What is a blockchain? A digital ledger or recordkeeping device – that tracks and records all transactions in a network. The transactions are collected in blocks, which are found approximately every ten minutes in a random process called mining. The initial block in a transaction chain on a blockchain is called the ‘genesis block’ (numbered 0 or 1). The individual blocks are connected to each other with the help of code snippets called ‘hashes’. No change

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Authentication/Provenance Reduced Transaction Costs Why Blockchain? Transparency Immutability Authentication/Provenance Reduced Transaction Costs No change

Current State of Supply Chain Management $54T Supply chains manage in global commerce $150MM Yearly Losses in theft from shipping industry $3.9T tied up in net working capital in supply chains 42 Days before payment is remitted for invoices Immutability Authentication/Provenance Reduced Transaction Costs No change

Smart Contracts and Supply Chain Needs revision

How It Works Needs revision

Industry Use Cases Food Safety: IBM, Walmart, Kroger, Dole, McCormick & Company, Golden State Foods, Driscoll’s Inc, McLane Co. Cargill created a distributed ledger for key stakeholders in the supply chain to track Honeysuckle White brand turkey from family farm to table with a blockchain-based solution Mining: BHP Biliton will use blockchain to record movements of wellbore rock and fluid samples and better secure the real-time data that is generated during delivery Sweetbridge (AZ): Aims to unlock asset liquidity by creating an economy based on its digital tokens, Bridgecoin and Sweetcoin IBM and Maersk: Announced a joint venture to deploy a blockchain-based electronic shipping system that will digitize supply chains and track international cargo in real time No change

Things to Consider Traceability: What is the traceability need? Who needs access to these data? Digital vs Physical Assets: Does the physical asset need to be linked to its digital representation on the blockchain? Stakeholders: How many manufacturing or supply chain layers are involved in the process? Does your SCM process require a central agency of trust? Legality: Are smart contracts legal binding in jurisdictions captured in supply chain network? No change