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2 Billing Freight Better with Blockchain (Demo) Yei Sung Kim Managing Consultant Accenture Cody Burns Enterprise Blockchain Architect Accenture

3 FREIGHT BILL AUDIT & PAY Blockchain Application for Freight Billing (US Patent Pending) Yei Sung Kim, Supply Chain, Accenture Cody Burns, Blockchain Architect, Accenture Blockchain for Supply Chain and Logistics Forum May 21, 2018 Houston, Texas

4 OUR VISION By 2028, supply chains will be completely transformed by the reimagination of business processes through the eyes of multi-party collaboration, enabled by shared data stored on the blockchain. Reimagined business processes Seamless sharing of data Flexibility to address specific pain points Erosion of silos within and between entities Copyright 2018 Accenture. All rights reserved. 2

5 CONNECTED IS JUST THE START OF THE JOURNEY LEARNING AGILE SMART Shared data Transformed processes Multi-party connectedness Integrated with ERP Copyright 2018 Accenture. All rights reserved. VISIBILITY & EXECUTION CONNECTED 3

6 CONNECTED REIMAGINES ANALYTICS & AI LEARNING AGILE Improved insights Integration with AI ANALYTICS & AI SMART Shared data Transformed processes Multi-party connectedness Integrated with ERP Copyright 2018 Accenture. All rights reserved. VISIBILITY & EXECUTION CONNECTED 4

7 CONNECTED REIMAGINES ANALYTICS & AI LEARNING Enhanced responsiveness Multi-party automation AGILE Improved insights Integration with AI ANALYTICS & AI SMART Shared data Transformed processes Multi-party connectedness Integrated with ERP Copyright 2018 Accenture. All rights reserved. VISIBILITY & EXECUTION CONNECTED 5

8 AND COMBINED WITH CONTINOUS INNOVATION Continuous innovation LEARNING Enhanced responsiveness Multi-party automation AGILE Improved insights Integration with AI ANALYTICS & AI SMART Shared data Transformed processes Multi-party connectedness Integrated with ERP Copyright 2018 Accenture. All rights reserved. VISIBILITY & EXECUTION CONNECTED 6

9 LEADS TO NEW OPPORTUNITIES AND BUSINESS MODELS NEW OPPORTUNITIES Demand driven supply chains Continuous innovation LEARNING Driverless supply chains Network wide optimization New services and offerings ANALYTICS & AI Enhanced responsiveness Multi-party automation Improved insights Integration with AI AGILE SMART VISIBILITY & EXECUTION Shared data Transformed processes Multi-party connectedness CONNECTED Integrated with ERP Copyright 2018 Accenture. All rights reserved. 7

10 ACCENTURE BLOCKCHAIN CAPABILITIES 12+ Accenture Labs worldwide focused on latest technology 500+ People trained on blockchain in India 70+ Clients being serviced globally on blockchain related activities 125+ Projects delivered globally on blockchain 6+ Industry leading platform focus Ethereum, Hyperledger, Multichain, Ripple, Corda, Quorum 50+ Active blockchain engagements globally Assets enable business centric solutions and value delivery 5 Patents awarded and more underway Copyright 2018 Accenture All rights reserved. 8

11 FREIGHT BILL AUDIT & PAY PROCESS The current process has multiple points of potential discrepancies due to siloed databases and inaccurate tracking, which causes a lengthy invoice reconciliation process. Carrier Carrier Carrier Carrier *creates *accepts *creates *accepts *approves Shipper RATE CONTRACT FREIGHT ORDER TRACKING LOG INVOICE PAYMENT *creates *accepts *creates Shipper Requests Shipment Shipper Shipper = Potential Discrepancy Copyright 2018 Accenture. All rights reserved. 9

12 BLOCKCHAIN SOLUTION Accenture s Freight Bill Audit & Pay Blockchain Solution uses the distributed database to bring visibility to freight rates, geolocation for real-time track-and-trace, and smart contracts to calculate invoices. DATA APPENDED ONTO THE BLOCKCHAIN Carrier Carrier GPS API on Truck Carrier Carrier *creates *accepts *creates time stamp & geolocation events *creates invoice through smart contracts *accepts Shipper *approves *links RATE CONTRACT *links FREIGHT ORDER *links TRACKING LOG INVOICE *links PAYMENT *creates *accepts *accepts *creates Shipper Requests Shipment Shipper Shipper OFS Shipper = Consensus Node Copyright 2018 Accenture. All rights reserved. 10

13 BENEFITS CASE By decreasing the cost to process an invoice, eliminating duplicate payments and tolerances, and removing late fees, there is a potential to reduce freight spend by 5 percent. $25B Oil & Gas Company Freight costs are ~8% of company revenue, $2B Up to 5% savings, $100M COST DRIVERS REDUCED INVOICE PROCESSING COSTS Internal Support Third Party Management Fees Third Party Reprocessing Fees Post-payment Audits ACCURATE AND TIMELY INVOICING Accurate Freight Rates Accurate Accessorial Charges Duplicate Payments Eliminated Late Fees and Interest Charges Eliminated Tolerance Overpayments Eliminated % SAVINGS ~1-2% ~2-3% TOTAL ~3-5% Copyright 2018 Accenture. All rights reserved. 11

14 DEMO INTRODUCTION Copyright 2018 Accenture. All rights reserved. 12

15 THANK YOU FEEL FREE TO CONTACT ME Yei Sung Kim Manager, Resources

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