This article was originally published on Linkedin
We are all familiar with Identity and Access Management. IAM has been very early on identified as a candidate blockchain use case. A well known example is ÔÇ£Know Your CustomerÔÇØ more commonly known as KYC. The┬áHyperledger Fabric┬áprovides the┬áFabric-CA┬áto issue credentials to participating agents and users in a permission-ed blockchain. In 2016, I had worked on a blockchain project around private-equity, where all identities and permissions to access the ÔÇ£equity contractÔÇØ were driven by the blockchain smart contracts.
Before we proceed further, we have to understand a few terms like claim and credential.
A claim is an assertion about a thing or statement without necessarily providing proof or evidence. For example a potential employee could claim to be an electrical engineer.
A claim cannot be verified if it is not supported by evidence. The supporting evidence is usually in the form of one or more credentials such as a University degree, on-the-job training certificate from a company, letters of reference etc. A credential is a qualification or testimonial that is issued by an entity to a business, thing or individual. For example, a quality certificate issued by a manufacturer for an IoT device, an insurance certificate issued to a business by an insurer are all examples of credentials. A claim may be supported by one or more credentials.
Identity is often associated with some credentials issued by an organization, agency or computer application. For example, a person may have a login/password for accessing their Facebook account, credentials provided by their employer for accessing enterprise applications, a government agency issued identity such as a driverÔÇÖs license or password for accessing public services etc.
A personÔÇÖs identity is usually a set of claims made by the person, and usually backed by a set of credentials in support of those claims. A set of claims/credentials can be presented to an entity to issue new credentials that can be used as proof of identity and/or perform certain actions based on privileges granted by the issuing entity. For example, an individual could present his/her birth certificate and proof of residency to the DMV to obtain a driverÔÇÖs licence which doubles as proof of identity and license to operate a vehicle.
Traditionally, people carry┬áphysical identities┬ásuch as the passport book, driverÔÇÖs license card, diplomas and degree certificates, birth certificates and the like to submit as proofs of identity to interested parties. With the digital age, new forms of┬ádigital identity┬ásuch as fingerprints, retina scans, user-id/passwords, digital certificates, digital passports have evolved.
There are various models for managing identity and access, and fall into centralized, federated and self-sovereign (self managed).
In the┬ácentralized model, the credentials are issued by a central entity or authority. Corporations provide and maintain identity credentials for enterprise access, Government agencies issue identity credentials to access public services, and in both the above cases, a userÔÇÖs identity is under the control of the issuing entity.
However, as individuals require access to multiple services and applications, managing credentials issued by multiple entities could get complex. In a┬áfederated model, multiple entities can subscribe to the same (unique) set of credentials that an individual owns, or multiple credentials issued by various entities can be mapped to one set of credentials. Usually a broker provides such a service. Examples include a ÔÇ£single sign-onÔÇØ service or a ÔÇ£Facebook accountÔÇØ that many entities trust.
In traditional identity management systems, an individualÔÇÖs, entityÔÇÖs or thingÔÇÖs identity is centrally managed by the issuing agent. Now, for instance, if the DMV decides to revoke an individualÔÇÖs driverÔÇÖs license, that individual has lost his/her identity which is typically used to check-in at the airport or present to a front desk in a hotel. If a person visitÔÇÖs a bar where an ID check is required to serve a drink, usually, folks present their driverÔÇÖs license. Even if the license carries information about the date-of-birth, if the license has expired, most often, the bar will refuse to honor the card.
If an individual, organization or thing can manage its identity (claims and credentials) along with the rights to present such information fully or partially to any other party, it can be considered as self-sovereign identity management. Such an identity management approach can enable the identity holder to have a uniform approach to share credentials universally with any local or foreign entity.
Decentralized Identifiers are a new type of identifier for verifiable, ÔÇ£self-sovereignÔÇØ digital identity. DIDs are fully under the control of the DID subject, independent from any centralized registry, identity provider, or certificate authority. This is an example of a DID that has been proposed to establish the identity of a supplier in the ÔÇ£Trust Your SupplierÔÇØ solution built by┬áChainyard.
did:tys:2XhdfxCGMpz7MHEKBwbadCZd6aBd
DIDs follow the URN (uniform resource name) notation i.e.┬áscheme:namespace:value. The scheme is┬ádid. In the above example, the namesspace is ÔÇ£tysÔÇØ. DIDs resolve to┬áDID Documents┬áwhich specify the details and usage of that specific DID. For more information check the DID specification by┬áclicking┬áhere.
The value associated with the DID can be any value such as a uuid, random number, base64, public key or base 58 encoded hexa or decimal string. The TYS DID is a base58 string of a public key hash. The following sample code generates a TYS base58 encoded did.
Along with DID, came the ÔÇ£Verifiable ClaimsÔÇØ specification. As per the verifiable claim spec, a verifiable credential can represent all of the same information that a physical credential represents. The verifiable claim has to to adhere to a minimum required format that must include among others, public keys, digital signatures, key generation method, authentication schemes, authorization schemes, DIDs and their type etc.
A verifiable credentials can be used to generate presentations that make it easy to present credentials to stakeholders. The specification is a candidate submission with the W3C. For more information about claims and verifiable claims,click here.
The DID Method Registry
The DID Method Registry maintains a list of companies that have published their DID specification. Enterprises and entities can choose to adopt one of the published specs or define their own version. The document provides a method for registering a new spec. For example, the TYS specification is available at this link and has provisional approval. We still have to complete the implementation and ensure that any changes to the DID Method Document specification is addressed and the methods defined are implemented.
Once a DID Method Specification has been published, the method end-points have to be resolvable through a DID Resolver (driver). DID API calls use the REST specification. A DID Resolver will help resolve a DID as shown in this example code.
tysDID.resolve(did:tys:2XhdfxCGMpz7MHEKBwbadCZd6aBd)
will resolve to a TYS Supplier DID/DID Document. The resolver has to provide the following REST operations:
The following shows a sample representative query result:
The TYS Specific driver will be wrapped into ÔÇ£Universal ResolverÔÇØ that can resolve a DID issued by any conforming organization. DID resolver can be written any language that can be wrapped into the Universal Resolver.A very nice article by┬áMarkus Sabadello┬áon the universal resolver can be found┬áhere. The┬áDecentralized Identity Foundation┬áaka DIF is driving the initiative.
Before we proceed further, some concepts and roles need to be ironed out. The following personas are usually involved in an identity management scheme.
The Credential holder, the Relying Party, The Credential Issuer, The Credential Verifier or one that can attest to it.
The Credential holder is an individual, agency, business or thing that holds a credential. Examples include an individual holding a university degree, a business entity carrying business insurance, an IoT device that holds a manufacturer issued proof-of-existence.
Credentials are issued by some individual or entity and are also known as the┬áIssuing Agent or Issuer. The university that issues the degree, the DMV that issues the driverÔÇÖs license or the manufacturer that signs the IoT certificates are all issuers.
Verifiers┬áare entities and agents who can attest the credential. Sometimes the verifier and issuer are one and the same. However, when I graduated back in the 80’s, my degree was a paper diploma issued by my┬áalma mater BITS Pilani. I had copies of my degree attested by a lawyer or a gazetted officer. In the US, third party agencies are used to verify information submitted.
Finally, the entity, be it a loan officer, an employer or the TSA, all trust the credentials that the identity holder submits. They are the Relying Party and trust the information submitted.
There may be additional personas depending on the application and the implementation of the platform. For example, in Hyperledger Indy, there are stewards or trust anchors and agents.
In self-sovereign identity, the Identity Holder holds the rights to completely, partially or not share their identity(s) with a relying party. Issuers hold the rights to revoke an issued credential.
Let us take the case of the bar. Instead of sharing the whole driverÔÇÖs license to prove age, the identity holder can turn on just the verified credential supporting his/her age to the hostess. The credential issuer has authority to revoke a credential if necessary. For example, the DMV can revoke the driverÔÇÖs license if there was a DUI conviction.
The concept of DIDs and verifiable credentials have many applications. The most common one is KYC or Know Your Customer are there are initiatives such as Hyperledger Indy yo make that happen.
There are several fit for purpose implementations focused on identity management such as Sovrin, Digital Bazaar, Veres One, TYS and uPort and one can go to their websites to understand more.
Sovrin is a public implementation of the Hyperledger Indy open source project, an open source project for decentralized self sovereign identity management. Sovrin is managed by the Sovrin Foundation. The original code for Hyperledger Indy was contributed by Evernym.
Veres One is a fit-for-purpose special purpose blockchain that has been optimized for managing identities on the internet.
Digital Bazaar is focused on providing a public blockchain called Bedrock is an application platform that helps you get your ideas to market quickly by reducing the engineering effort of launching a new product. The company also provides solutions for verifiable credentials management. Manu Sporny, its founder has been a key figure in the evolving digital identity and verifiable credentials initiatives.
uPort┬áis a blockchain platform built on Ethereum. uPortÔÇÖs open identity system allows users to register their own identity on Ethereum, send and request credentials, sign transactions, and securely manage keys & data.
At┬áChainyard, we are working on a Supplier Identity Platform known as ÔÇ£TYSÔÇØ or Trust Your Supplier. TYS provides DIDs for supplier identities and verifiable credentials that the supplier holds. TYS is pre-production state and will be going live in a few weeks.
There are many other applications for DID and verifiable credentials. Imagine high value items and luxury goods. If each of the Luxury items had a DID issued by its manufacturer along with verifiable credentials, the blockchain along with supporting technologies (BIVA) can be deterrent against fraud and counterfeiting.
In the US, a person can buy used vehicles. The identity of a car is the VIN number. What if the car was issued verifiable credentials associated with DIDs around service records, inspections, factory authorized replacements and manufacturer certification?
DIDs can be expanded to be applied to vintage cars, high value art ÔÇö many of these exist for a long long time, long after their original and subsequent owners lifetimes.
The United Nations deals with several problems from tracking and issuing credentials to displaced people, tracking endangered species to name a few.
Horse owners involved in the owning, training and racing of highly valuable horses could provide┬ádigital identities┬áto their┬áanimals┬áor even closer ÔÇö every┬ápet┬áhas a digital identity.
The following diagram shows how the SSI and Blockchain are conceptually implemented.
Depending on the blockchain technology used, the physical documents that the did document refers to may be stored on-chain or an off-chain database. For example, TYS is implemented on the IBM Blockchain Platform based on Hyperledger Fabric. It has capability to not only issue DIDs and DID Documents, but also store the physical documents that the DID Document refers to. The Physical Documents and PII (personally identifiable information) data are stored off-chain due to regulatory compliance requirements.
This article originally published in Industrial Distribution here.
A growing demand for high-quality product dataÔÇöto support service, recalls, and corporate social responsibility effortsÔÇöis just one of many concerns for modern retail supply chain managers. Expectations are also heightened for supply chain information accuracy. For example, what type of computer or router is being shipped? How many are in a particular shipment? What temperatures or humidity levels are they being exposed to? Are they being handled correctly?
Multiple parties need this information, because they need answers. In an E. coli outbreak, Walmart needs to know which lettuce is bad so that it discards only the produce from that farm. ItÔÇÖs similar with computers: If a quality issue is identified in a component or batch, only the machines with those bad parts need to be serviced. Parties up and down the supply chain need the right information in order to quickly identify and respond to events that may spoil or damage products, resulting in preventable losses.
At other points on the supply chain, value-added distributors and resellers need insights into previous quality checks performed on certain components and products so they can reduce redundant testing and improve their abilities to predict and respond to failures. Likewise, manufacturers need information about the configuration of individual items and any changes that occur as parties like distributors and resellers build on base units to create more tailored solutions.
Transparency┬áthroughout the supply chain is critical to boosting operating efficiency, building trust with customers, ensuring brand reputation, and improving agility and reaction speed. In some cases, itÔÇÖs also mandatory. Regulations like CaliforniaÔÇÖs┬áTransparency in Supply Chains Act, aimed at curbing human trafficking, and the federal┬áDrug Quality and Security Act, enacted to stop illegal drug distribution, are increasingly adding to the demand for thorough, accurate supply chain data.
Existing systems and traditional electronic data interchange messages werenÔÇÖt designed to support these data requirements. This leads to inefficient workarounds such as using email and Excel spreadsheets to share vital informationÔÇödangerously insecure formats. It also leads to a proliferation of bespoke solutions that support only narrow requirements. Furthermore, those who try to integrate their systems to capture data from upstream and pass it downstream may find themselves stuck with an ever-growing list of one-off integration projects.
The struggle to maintain information continuity isnÔÇÖt new. Unfortunately, neither are the solutions most companies rely on. They are typically systems designed┬ádecades ago┬áto support vertically integrated companies with mostly static supply chains.
In response, blockchain is increasingly recognized as a technology that enables solutions that simplify data sharing from end to end in even the most complex supply chains. Unlike electronic data interchange-based messaging, blockchain systems provide a single data set that all parties involved in a supply chain collaboratively maintain. Blockchain technologies offer the security, privacy, and trust needed for trading partners to share data and business logic. This is a huge improvement that eliminates the problems of constantly trying to keep different systems in sync.
Enterprise blockchain has come a long way in the past several years, proving its utility and versatility. Many of the risks and challenges associated with implementing blockchain networks have been eliminated, allowing this technology to be used to solve a wide range of business problems. Future blockchain applications promise to be even more sophisticated and economical.
Distributors are in a great position to drive the implementation of blockchain in solving the need for more and higher-quality data about supply chain components. Though itÔÇÖs possible to wait for a technology provider, competitor, or customer to define and build a blockchain system, distributors that get ahead of this new approach will benefit from early adoption, likely gaining significant competitive advantages.
Start by identifying gaps in the systems and standards currently used to share information and transact with trading partners. Golden State Foods, for example,┬ápartnered with IBM┬áto use blockchain to coordinate among parties on the supply chain, allowing the food service supplier to track the movement of beef at every stop and monitor its temperature along the way. The data that became visible via blockchain gave Golden State Foods unprecedented insight into every aspect of the distribution and manufacturing process, and it ultimately led to strategic optimizationsÔÇöand better beef.
In every case, implementing the technology now will allow businesses to influence industry standards in favorable ways and to establish new revenue streams based on providing access to blockchain-based systems.
Blockchain isnÔÇÖt the right answer for every challenge in integrating with partners, but itÔÇÖs a valuable tool in your kit. Working with a partner who has both blockchain and supply chain experience will illuminate which questions to ask in order to determine whether a blockchain approach is worth implementing. That said, thereÔÇÖs no better way to get answers than to find a problem that looks like a fit and to start prototyping solutions to test the benefits of the approach. Blockchain may not change everything, but in an era when supply chains management must change, it will inevitably drive that transformation.
To learn more about how blockchain can improve your supply chain, download our whitepaper.
For more information or to schedule a demo on this leading-edge procurement solution, visit Trust Your Supplier.
This article was originally published on LinkedIn.´╗┐
The term ÔÇ£redundant testingÔÇØ sounds like an effective quality assurance measure. In fact, it is: It has been used as a fault tolerance mechanism in many industries. However, in most of todayÔÇÖs supply chains, redundant quality testing takes time and effort, and often decreases testing performance.
Many products require components from a variety of suppliers. This amplifies the problems associated with redundancy. Yes, quality is paramount in each of those components and in most products overall, but redundant testing causes inefficiencies that waste time and resources.
If there were a way to eliminate the need for redundant tests, those inefficiencies would be gone. In many cases, blockchain is that way. The visibility that it gives you into your supply chain is the most effective first step in phasing out redundant quality testing without the risk of sacrificing the quality of your product.
Permissioned blockchain, the technology catalyst for Hyperledger Fabric, Quorum, R3 Corda, and other enterprise platforms, creates a network that automatically records transactions into an irrefutable and trusted record. Or in the case of manufacturing, it records every step in a productÔÇÖs journey along the supply chain ÔÇö and the journey of every component that goes into that product.
Permissioned blockchain, the technology catalyst for Hyperledger Fabric, Quorum, R3 Corda, and other enterprise platforms, creates a network that automatically records transactions into an irrefutable and trusted record. Or in the case of manufacturing, it records every step in a productÔÇÖs journey along the supply chain ÔÇö and the journey of every component that goes into that product.
Beyond compliance, blockchain sets the foundation for a level of trust that eliminates the need for redundant testing. Every component supplier along your supply chain can conduct their own rigorous testing. Their results, combined with a digital signature, can be recorded directly from their manufacturing equipment into the blockchain system greatly increasing trust in the results.┬áThis both ensures that the supplier canÔÇÖt alter the results and gives you a glimpse into the testing process.
Because it increases visibility into the supply chain, blockchain is a boon to industries where audit and regulatory compliance are important. The system provides a verified historical record that canÔÇÖt be altered. In addition, smart contracts can be used to audit all transactions for compliance instead of selecting samples and hoping they’re representative of all transactions.
Integrating every supplier and stakeholder in your supply chain into a blockchain network is a guaranteed way to eliminate the need for retesting every component. Making the test data part of the goods receipt process, freeing up time is only one of the benefits you’ll realize.
We know that because other tests should catch any component-level issues, redundant testing can decrease the performance of each test. By reducing redundant component-level testing, you can focus on improving your tests of finished goods. And because it reduces unexpected quality problems along with redundant tests, it also improves your margins. Better testing results in higher quality, which benefits product management, sales, manufacturing, and ultimately, consumers.
The motivation behind redundant testing is largely the fear of missing defects only to have to correct them later in the production cycle. The costs of late remediation can be exorbitant, yet you can avoid them if you can depend on your component manufacturers to test and certify their parts. With both the results and the certification recorded on the┬áblockchain prior to delivery, every section of your business ÔÇö and your customers ÔÇö benefits from not having to rely on redundant testing.
Detecting and addressing defects earlier in the production cycle is just one way that blockchain helps reduce production time and costs. This simultaneously eliminates time-consuming steps, making production faster and less expensive overall. Fewer steps ÔÇö especially redundant testing ÔÇö means fewer opportunities for variables to create production issues. Operations, product management, and sales especially benefit from having more streamlined processes.
When production is streamlined and you have eliminated the need for redundant testing, quality assurance becomes a much easier activity to maintain. ThatÔÇÖs especially true as products and processes change, suppliers come and go, and your supply chain evolves over time. The integration of blockchain and certified testing allows you to keep margins healthy, production efficient, and product quality high throughout any changes.
As with most of the benefits that come with a blockchain-enabled supply chain, the reduced need for redundant testing stems from the visibility and transparency to trusted data that the technology provides. To learn more about how blockchain can improve your supply chain process, download our whitepaper.
IBM and Chainyard have announced Trust Your Supplier (TYS), a blockchain network designed to improve supplier qualification, validation, onboarding and life cycle information management.
Here are a few of the publications that covered the press release.
IBM has announced another major blockchain project, Trust Your Supplier. Digital Asset Live previously talked with IBM Blockchain Ventures Managing Director about it, however today we have a unique opportunity to look at the same project from another angle, Digital Asset Live Editor-in-Chief talked to Sai Nidmarty, CEO/Founder IT People Corporation, blockchain partners of IBM in Trust Your Supplier.
Link to article: https://digitalasset.live/2019/08/17/chainyard-blockchain-offers-better-values/
This article was originally published on Global Trade.
A recent report by the Organization for Economic Cooperation and Development and the European UnionÔÇÖs Intellectual Property Office shows that imported counterfeit goods raked in┬á$509 billion in 2016┬áÔÇö nearly 3.3% of all global imports for that year. To fight back against the rising tide of knockoffs threatening their brands, companies are turning to blockchain technology to create more transparent supply chains.
Blockchain is a distributed, decentralized ledger technology controlled by smart contracts and regulated by a consensus protocol. The ledger automatically records every transaction, and every record it creates is unalterable. Depending on exactly how one uses the ledger, it can be classified as permissioned, public, or fit for purpose.
Within a brandÔÇÖs supply chain, a blockchain ledger can manage a variety of activity from┬áautomating contract compliance┬ábetween entities via┬ásmart contracts┬áto tracking products from manufacturing to distribution. The ledger eliminates supply chain ambiguities and creates transparency that ensures companies and customers get the quality for which they pay.
The value of modernizing supply chains with blockchain isnÔÇÖt just theory. Major brands have already begun partnering with tech firms and other entities in response to rising demands for improved brand protection. LVMH (Louis Vuitton SE), for instance, working closely with Microsoft and ConsenSys, has created┬áAura Ledger┬áto provide proof of authenticity of luxury items and trace their origins from raw materials to point of sale and beyond to the used-goods markets.
Throughout the retail industry, companies like eBay are starting to offer product authentication as a value-added service. Currently, the company authenticates only handbags due to rising concerns from customers about their authenticity. However, eBay plans to expand authentication to additional luxury items that might be subject to counterfeit.
In agriculture, the blockchain-based Grain Discovery streamlines transactions between farmers and buyers, making it easier for them to form new partnerships. In the pharmaceutical industry, distributors have formed the MediLedger consortium to track the provenance of pharmaceuticals and stem the counterfeit drug market worth more than $75 billion annually.
In virtually every industry, suppliers and distributors are turning to blockchain technology to lower their risk of┬áfraud. A decentralized, immutable record of every productÔÇÖs journey can help verify authenticity ÔÇö or lack thereof.
Companies that worry about counterfeit versions of their products have options to address the issue. When implemented together, the following steps can help mitigate risk and inspire confidence among companies and consumers alike:
For blockchain to successfully transform a companyÔÇÖs supply chain, every business entity along the chain must agree to participate. That makes establishing a network of trusted partners the most important step toward securing products.
For example, the┬ájewelry consortium TrustChain, which operates on IBMÔÇÖs blockchain platform, only works because the group includes the mines that produce jewels, manufacturers that refine them, and retailers that sell them.
Given the rise of counterfeit purchases, most companies with strong brands are looking to work with their suppliers to prevent fraud. The momentum of such efforts increases when every stakeholder in the supply chain sees the value and signs up to actively participate in the efforts.
Only with the right tagging technology can blockchain technology track every product along its journey. Through various IoT devices, tags can detect diversions, liquid leaks, vibrations, package openings, tilt, excessive force, and more.
Companies have several options, such as smart tags and high-resolution signatures that digitally relate products to the blockchain. Purpose-fit tags that have been developed to track shipments at the container, pallet, and package levels further help. Companies can also employ decentralized identifiers (DIDs) that are universally resolvable and globally visible to stakeholders throughout the supply chain.
This topic holds great interest across many industries. The RFID Lab at Auburn University recently announced the Chain Integration Project (or CHIP) launch, a project focused on finding ways for retail and apparel companies to communicate with their suppliers about tracking product inventory at the item level using radio frequency identification tags and blockchain. The project has attracted global companies across many industries due to the applicability across supply chains outside of retail and apparel.
Some products donÔÇÖt need to be tracked with such intricate detail, while others should be tagged to track every moment of their journeys. Determine what tagging technology makes the most sense, adds business value, and is easiest to manage along the entire supply chain.
When customers clearly and directly benefit from a companyÔÇÖs use of a┬áblockchain-enabled supply chain,┬ágetting more partners to join the consortium becomes easier. However, brands canÔÇÖt expect all end users to automatically jump on board.
When eBay released its authentication program for handbags, it did so in response to a need its customers had expressed. To entice sellers to participate, it offers several incentives if they sign up to authenticate their products.
Before long, the streamlined processes and unprecedented transparency that blockchain provides will be more than enough to encourage participation. Until then, make it more attractive through bonuses and other rewards in order to incentivize users and increase customer stickiness.
Protecting against counterfeiting and fraud isnÔÇÖt always a passive exercise. With blockchain,┬ácompanies┬ácan unleash the potential of IoT, artificial intelligence, and machine learning to actively prevent fraudulent transactions.
For instance, customers can scan product tags to verify their authenticity or compare images of the product against its stored signatures. Proof of purchase and other transaction details can be cryptographically linked to the buyer and product and then subsequently uploaded to the blockchain.
Any product that bears a brandÔÇÖs name but canÔÇÖt be tracked to its manufacturer would be considered counterfeit. A company can ensure, in real time, that it receives compensation for every product sold with its name on it.
The reported value of fraudulent goods that hit the global market is expected to continue rising, but companies are no longer helpless in the face of counterfeiters. As more industries and their supply chains embrace blockchain technology, counterfeit goods will no longer have a place in any market.
This article was originally published on Supply & Demand Chain Executive.
For any company that operates within the European Union,┬áethical sourcing┬áwill become mandatory for all conflict materials as of January 2021. Even for global companies not affected by this mandate, the forecast suggests that itÔÇÖs worth making ethical sourcing a priority.
Companies actually benefit from ethical sourcing. ItÔÇÖs viewed as a responsible, enlightened characteristic, which improves a brandÔÇÖs reputation and its ability to attract customers. It also impacts how the company operates and interacts with its partners.
Emphasizing ethical sourcing requires enhanced transparency and communication with the vendors in a companyÔÇÖs supply chain. Better communication equals deeper relationships between manufacturers and vendors, a stronger manufacturing supply chain, and a reduced risk of adverse events putting the supply chain at risk.
Many serious considerations that go beyond any brandÔÇÖs image are behind ethical sourcing. The goal of regulations mandating the practice is to ensure that the purchases of materials like tin, tungsten, cobalt, and gold donÔÇÖt finance war atrocities and human-rights abuses around the globe. They also aim to promote sustainability practices along manufacturing supply chains.
By focusing on conservation and sustainable sourcing to improve supply chains, companies can help ensure that those resources will still be available in the future. Essentially, ethical sourcing is a critical step for companies that want to be more socially conscious and connected with their consumers and the world around them.
For employees who work for such companies, the positivity, pride, and satisfaction of working for a socially conscious employer is key to the joy they feel in their careers. It makes sense for companies to promote ethical sourcing ÔÇö among other socially responsible practices ÔÇö to help recruit, develop, and maintain a cohesive, effective workforce.
It also makes financial sense overall. The changes needed to ensure ethically sourced products strengthen a companyÔÇÖs supply chain and help ensure that the economics of certain products are predictable and lighten the burden of producing those products. The effort enables a company to put a premium price on ethically sourced products, attracts customers to the product, and ensures a solid revenue stream.
Why Blockchain Is the Key to Ethical Sourcing
To achieve the level of transparency, communication, and trust that manufacturers need to have with their suppliers, companies need a new way to structure and run their supply chains. Because they have the ability to improve real-time visibility across the entire supply chain, blockchain networks are proving an apt solution.
One of the most important features of a blockchain network is that it allows companies to ensure their suppliers meet the standards set forth in their contracts. Companies can more easily manage third-party suppliers to ensure that obligations regarding worker treatment and conditions, human rights, and other ethical sourcing practices are being maintained.
ThatÔÇÖs especially important for manufacturers who use sensitive products in their supply chains. Blockchain documents the provenance of parts, ingredients, and other elements that go into their manufacturing processes. This lets manufacturers see a complete and immutable audit trail that encompasses each stage of the materialsÔÇÖ journey through the supply chain.
As conscious consumers join the call for greater social responsibility and environmental protection from manufacturers, blockchain helps companies answer that call. With a┬áblockchain-powered supply chain, companies can share that immutable proof to show consumers (and regulation authorities) that theyÔÇÖre meeting the demand for ethical and sustainable practices.
How to Run an Ethically Sourced Supply Chain
All of the factors that go into ethical sourcing also augment a companyÔÇÖs overall financial risk profile, which ultimately attracts investment in the company and makes expanding the supply chain easier. Implementing blockchain, a technology that provides the transparency and security to enable a stronger, ethically sourced supply chain, is a viable approach ÔÇö a task that many companies are already undertaking.
These are just a few of the ways in which companies are successfully using blockchain to ensure ethical sourcing:
This strategy is used by like-minded companies, possibly even competitors, who join forces to make ethical sourcing of materials the standard for their industries. They make a pact to use blockchain to enable provenance and traceability of all materials that go into the manufacturing of parts and products. IBM, Ford, LG Chem, Huayou Cobalt, and RCS Global have used the consortium strategy to implement ethical sourcing of cobalt through a mine-to-end-user blockchain network.
This strategy involves key high-level activities, including forming a consortium, adopting a governance framework, and deploying a blockchain network. Often, the company with a significant pain point will take the lead and fund the core blockchain development; others in the network can then agree to participate in the design and integrate their systems as needed to add or use data. The consortium can then use a services provider to help grow the use of the network within their own supply chains.
Once the blockchain solution is in place and demonstrating value, consortium members can advocate for their other supply chains to join the system. In these cases, a fee model can be used that would increase the return on investment for the initial development.
Not every company can start a consortium, but many can ÔÇö and do ÔÇö join existing initiatives. They can start by identifying blockchain networks that have useful data. Several networks have gained traction and will allow access to their data for a single subscription fee. If a network supports the companyÔÇÖs procurement needs and industry-specific regulatory requirements, can validate verifiers on the network, and can integrate data with the companyÔÇÖs existing records, then this may be the companyÔÇÖs optimal strategy.
Not every company can start a consortium, but many can ÔÇö and do ÔÇö join existing initiatives. They can start by identifying blockchain networks that have useful data. Several networks have gained traction and will allow access to their data for a single subscription fee. If a network supports the companyÔÇÖs procurement needs and industry-specific regulatory requirements, can validate verifiers on the network, and can integrate data with the companyÔÇÖs existing records, then this may be the companyÔÇÖs optimal strategy.
The Trust Your Supplier network is one such consortium. It shares trusted data with companies in the network to help them with supplier onboarding and life-cycle management. IBM and several other prominent manufacturers have committed to joining this network in efforts to streamline their supplier procurement processes.
For companies that donÔÇÖt feel ready to jump in with both feet, initiating a pilot program can validate the idea and provide proof of concept. Companies with limited blockchain knowledge should work with a blockchain consulting service to identify the best use cases within their supply chains and should work with stakeholders to develop a program that can run as a shadow to existing systems.
Taking this approach should demonstrate how forecast data can be shared efficiently and securely. At that point, a company may begin sharing its own inventory data onto an existing blockchain network. With an infrastructure and network in place, this should be a simple process of building an integration to the enterprise resource planning system that queries for the relevant product tracking information. The ERP system will then record any changes that have occurred. Down the line, a company can track the inventory directly in the blockchain instead of the ERP, but just providing and getting visibility is valuable.
Many companies use this approach to test blockchain without committing to a full-blown consortium before theyÔÇÖre ready. For example, Mercedes-Benz has initiated a pilot blockchain program to┬ávet third-party suppliers. ItÔÇÖs part of DaimlerÔÇÖs greater effort to ensure its entire supply chain adheres to ethical sourcing practices.
The EUÔÇÖs impending regulations arenÔÇÖt the only motivating factor in the growing push for ethical sourcing. Besides the sustainability that comes with ethical sourcing, companies can also show their customers that they care. By making the process transparent, blockchain can help keep supply chains properly aligned with that goal while also enabling better top-line revenue and margins.
MRCL is proud to announce a great partnership with ITPeopleÔÇÖs Chainyard and our commitment to take disaster response to a new level of connectedness, transparency, and trust ÔÇô demonstrating the power of collaboration and connection. Our first phase of a new collaboration software platform, created in Blockchain, has been honored by Stevie Awards with a 2019 Silver Medal International Business Award for Community Engagement. Attending to receive the award were Kathryn Ingerly (MRCL), Sri Nidamarty (Chainyard), Shima Zabihi (MRCL) and Lee Duncan (MRCL).
LetÔÇÖs take a peek at MRCL’s partnership announcement..´╗┐
Dubai, United Arab Emirates ÔÇô Gitex 2019
http://www.etisalcom.com/pressrelease/chainyard/
In its effort to provide the latest blockchain technology to its clients, Chainyard has signed a memorandum of understanding with Etisalcom, the Bahraini Telecom giant. Etisalcom will be able to provide ChainyardÔÇÖs expertise and knowhow to its existing clients and customers.
About Etisalcom: Etisalcom is a leading information and communications technology (ICT) solutions provider focusing on the Enterprise Sector in the Kingdom of Bahrain. Etisalcom was established in March 2005 as a new entrant Telecom Company licensed to provide National & Global Telecom and IT services. Etisalcom is the first private sector service provider, and a credible alternative, for fully integrated Information Communications Technology (ICT) solutions, including Next Generation Voice, Video and Data services, in the Kingdom of Bahrain and beyond. For more information, please visit Etisalcom online at www.Etisalcom.com or follow us on: https://www.linkedin.com/company/etisalcom-bahrain-w.l.l/
About Chainyard:
It is as important to mention that Chainyard has a team of blockchain experts that brings extensive experience in architecting, designing, building, testing, securing and operating complex distribution systems to help adopters of blockchain technology succeed. ChainyardÔÇÖs main services are Blockchain Consulting, where they work with clients to develop blockchain strategy for their business to drive value, reduce cost, eliminate friction and create new revenue models. Blockchain Engineering, where they have wealth of experience architecting, developing and implementing real-world blockchain solutions for some of the largest companies in the world. Finally, Blockchain Operations, where the Chainyard team provide their clients with a complete view of blockchain technology operations landscape and work with them to integrate into their existing operational system.