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Blockchain and IoT For Supply Chain Traceability


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The conventional supply chain is plagued with various issues, most pressing among which is transparency or the lack of it thereof. Being a self-auditing distributed ledger that is accessible to all participants in the network and updated in real time, Blockchain brings in unprecedented levels of transparency to the supply chain. Moreover, its decentralized nature ensures that no single participant along the supply chain holds an unfair advantage or any influence on the data pertaining to the shipment.

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Blockchain and IoT For Supply Chain Traceability

  1. 1. Blockchain & IoT 
 Supply Chain Traceability Shameer Thaha // CEO, Accubits (MENA)
  2. 2. AI & Blockchain focused development company Shameer Thaha CEO, Accubits (MENA) & Global CSO 6 countries so far, with 150+ team members
  3. 3. Next 30 minutes is about … " Supply Chain Challenges " How blockchain solves these challenges " Role of IoT & It’s Challenges " Why Blockchain & IoT? " How blockchain and IoT can assist " Impact on stakeholders in the supply chain " Other use cases " Hurdles in the chain " Where do you start?
  4. 4. Fraud in Supply Chain Pharma " 25% of vaccines reach their destination degraded because of incorrect shipping " 30% of pharmaceuticals are scrapped due to logistics issues alone " 20% of temp-sensitive products are damaged during transport due to broken cold chain Food Agromafia " PwC study - $40b food fraud globally " 70% of extra virgin oil in US (that you probably ate) was counterfeit " In 2014 Interpol seized 11k tons of fake food Food Consumption " 3000 American deaths/ year " Frequent Salmonella & E.Coli outbreaks
  5. 5. Operations & Logistics “10,000 containers lost in sea every year” - World Economic Forum Delays & Inefficiencies Manual Processes Customers demand quality, safety, transparency, ethical sourcing, & speed
  6. 6. Supply chain challenge - Recall ”Where did <this> come from?” Farm/ Source Factory Transporter Supplier Assembly Line Region Country Batch Retailers
  7. 7. Adding Value to Supply Chain Downstream chain Logistics Logistics Upstream chain Data Request Information Flows Supplier Producer Client
  8. 8. Dependencies Trust Effectiveness of lowest common denominator Reconciliation Limited manifestation of information flow
  9. 9. So what do we need for an ideal supply chain? End-to-end visibility • Increase efficiency along the supply chain and ensure traceability Flexibility • Ability to adapt and respond to issues rapidly with no critical impact on operational costs is necessary to stay competitive in the market Inferred trust • The stakeholders should not have to trust each other but should trust the security integrated into the system to collect and provide true and accurate data Control • Policies, monitoring capabilities and control mechanisms are important
  10. 10. Auditability Blockchain provides a full audit trail of data, creating an everlasting means of record keeping along a supply chain Immutability All blockchain transactions are timestamped and tamper-proof, providing a single source of data integrity Smart Contracts Continuous real- time tracking of data is facilitated through the use of smart-contracts across the supply chain Disintermediation Blockchain enables peer-to- peer interactions which can be trusted based on the digital signatures Traceability Compliance Flexibility Stakeholder Management Capability to monitor events and meta data associated with a product Standards and controls to provide evidence that regulatory conditions are met The ability to adapt rapidly to events or issues, run various scenarios without significantly increasing operational costs Effective governance in place to enable communication, risk reduction and trust among the involved parties Supply chain Pain points Block chain capabilities
  11. 11. Blockchain to the rescue Fast transaction settlement Low Cost Transparent and Audit- able Reliable
  12. 12. IoT Architecture Layer
  13. 13. 5 challenges to industrial IoT - Gartner " Connecting 26 billion devices by 2020. " Creating controls for vast number of devices " Enable P2P communication between globally distributed computers. " Provide compliance and governance for all autonomous systems " Address the security complexities of the new landscape.
  14. 14. How blockchain and IoT Assist The major challenges are about information sharing and trust. 
 ✓ Track & Trace product journey & lifecycle ✓ Trade Finance ✓ Automate Bill of Lading & Customs ✓ Simplify Global Trade Compliance ✓ Track Point-of-origin & ownership changes ✓ Detect & notify tampering attempts Better Visibility Faster Root Cause Analysis Easier Info Sharing
  15. 15. Impact on Stakeholders
  16. 16. Producer Now • Has a limited ability to control and verify the flows coming from its suppliers (e.g. compliance to standards, respect of requirements) Future • Benefits from an integrated and distributed ledger that enables them to control the inputs and keep track of its production
  17. 17. Freight Forwarder Now • Reliable but one-sided tracking system • Limited certification ability and complex tracking (e.g. heat or pressure variations) • Difficult to certify a code of conduct Future • Shared information system • Client can benefit from a distributed and certified system • Client can make sure his goods are transported in the right conditions and timing
  18. 18. Broker Now • Difficulty to certify the origin and path of the goods bought and sold Future • Can easily check the origin of the goods and their transformation path on the blockchain • With sealed IoT devices put on the goods, the broker can check and prove its authenticity and provenance
  19. 19. Consumer Now • Difficulty to verify the compliance, origin, and composition of the goods to be bought Future • Has a full view on the goods bought (i.e., provenance, transformation process, transportation) directly on the blockchain
  20. 20. Other use cases Healthcare industry verify authenticity, avoiding potential fraud and manipulation Food industry packaging sensitive products with tags, smart thermometers Art & Luxury wares industry RFID seals and blockchain . Embedding into the work to guarantee authenticity sort of like a DNA identification
  21. 21. Hurdles in the chain • Nascent technology - Blockchain & IoT standards ? • Digital/ physical link - device certifications • Modelization of information • New infrastructure requirements - new data flows, storage, data visualization etc • Overall agreement in supply chain on using blockchain
  22. 22. Where do you start? ❑ Understand your supply chain weaknesses and risks ❑ Review your supply chain as upstream as possible to identify weaknesses and risks you will face ❑ Start small ❑ Collaborate ❑ Scale progressively
  23. 23. Reach me on