Blockchain & logistics innovation

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Maximilian Harmon
6 years ago
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1 Blockchain & logistics innovation Martijn Siebrand Program manager Supply Chain Finance Specialist Transport en Logistiek Van Oers Accountants & advies

2 Supply Chain Finance - Blockchain

3 Blockchain & logistics innovation

4 Blockchain only for financial transactions?

6 Blockchain project TKI Dinalog

Blockchain & logistics innovation Overall project objective: The combination of the ledger technology with smart contracts have the potential to form a powerful logistics innovation platform.

7 Blockchain & logistics innovation Overall project objective: The combination of the ledger technology with smart contracts have the potential to form a powerful logistics innovation platform. We will use existing, deployed, and proven blockchain technology as the foundations of our core business infrastructure, to be tested with 3 use cases. The aim of this project is to unequivocally show the business value of the blockchain in logistics. Projectlead: TU Delft: DR.IR. J.A. (JOHAN) POUWELSE

8 Starting point project Goods flow Possible blockchain information flow IT Infrastructure No cost for redundancy Scalable Permant up-time Strong ID controls Auditable by third parties Possibilities for (automated) finance, customs, optimization, etc. Transparency

9 Consortia partners

10 Minimum Viable Product (MVP) National Contract Proof of delivery Payment obligation Payment

11 Current ecosystem invoicing platform document courier document courier import customs export customs insurer shipper importer import terminal export terminal preshipment inspector freight forwarder exporter importer s bank exporter s bank documen ts goods finance correspondent bank

Export/impor t customs Current ecosystem An average trade transaction involves over 10 parties and over 30 different physical documents = document courier pre-/postshipment

12 Export/impor t customs Current ecosystem An average trade transaction involves over 10 parties and over 30 different physical documents = document courier pre-/postshipment inspector Insurer Exporter exporter s bank importer s bank Importer Shipper doc support doc handling doc checking IBAS IBAS doc support doc handling doc checking Exporter s bank

13 Blockchain based ecosystem correspondent bank importer import terminal importer s bank shipper import customs export terminal export customs preshipment inspector insurer TRANSPARENT AND PAPERLESS SYSTEM INFORMATION DISTRIBUTED VIA STRAIGHT THROUGH PROCESSING ONLINE REAL TIME TRACK & TRACE OF TRANSACTIONS AND PHYSICAL FLOW REDUCED RISKS THROUGHOUT THE CHAIN exporter s bank freight forwarder exporter

14 Next step: International Contract Proof of delivery Electronic customs Payment obligation Payment

visibility of goods along the supply chain.

15 Next step Seller Customs Carrier Customs Buyer Goods shipped along supply chain Smart contract Distributed ledger / Blockchain Real Time information Trigger event The use of electronic chips on shipping containers would enable realtime visibility of goods along the supply chain. These chips could interact with smart contracts built on distributed ledgers to automatically carry out functions without manual processing, thus further enhancing automation and enabling more granular payments.

16 Benefits Track & trace of shipped goods Workflow management tool Straight through processing Working capital optimization

17 Use cases in project: Identified use cases: Using digital consignment notes to trigger smart contract finance for carriers Asset based inventory finance Enabling a Circular Economy Other use cases to be explored

18 Anti-double finance register Blockchain

How does Everledger.io keep track of each individual diamond? A: We store the identity, ownership and movement of diamonds on our global, digital ledger.

19 How does Everledger.io keep track of each individual diamond? A: We store the identity, ownership and movement of diamonds on our global, digital ledger. Once the diamond s defining characteristics (4Cs cut, clarity, colour and carat, 40+ pieces of meta data and high res photos) are uploaded on the blockchain, all stakeholders invited to the ledger can access the same set of information and track the diamond as it moves throughout its journey from mine to counter.think of it as a digital passport of the diamond on the blockchain a permanent record that can t be changed without required consensus.

what we can do with this technology We are going to

20 Blockchain technology might change the way we think about trust and transactions We are only beginning to understand what we can do with this technology We are going to explore the innovative potential for logistics, trade and finance

21 Blockchain examples

22 Practical solutions

Current way of sharing rights to pickup containers Is based on pincodes Problem Ensure that container arriving at port is handed over to the right party: truck-barge-rail Current solution Relies on

23 Current way of sharing rights to pickup containers Is based on pincodes Problem Ensure that container arriving at port is handed over to the right party: truck-barge-rail Current solution Relies on Pincodes to ensure that right party is picking up the container Involved parties Carrier Forwarder Terminal Barge operator Rail operator Truck companies Subcontractors Driver / Skipper established by Haven convenant

25 TKI-Dinalog driven by open innovation Martijn Siebrand

Open Global Trade Digitization Platform

Open Global Trade Digitization Platform G20 Global Trade Infrastructure Connectivity Alliance 25th January 2018: OECD Conference Centre, Paris January 2018 OVERVIEW should be construed in any way as a