Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone are founding participants alongside IBM.
“Blockchain has the ability to completely transform how companies onboard and manage their supplier network for the future,” said Renee Ure, Chief Supply Chain Officer for Lenovo’s Data Center Group. “Through Trust Your Supplier, both buyers and suppliers will the see the procurement benefits of blockchain through reductions in cost, complexity and speed.
TYS simplifies supplier qualification, validation, onboarding and life cycle information management unlike cumbersome manual processes, which make it difficult to verify identities and track documents like ISO certifications, bank account information, tax certifications, and certificates of insurance.
The Blockchain-based decentralized approach ensures an immutable audit trail which eliminates manual time-consuming processes and helps reduce the risk of fraud and errors, ultimately creating frictionless connectivity across supply chains.
TYS creates a digital passport for supplier identity on the blockchain network that allows suppliers to share information with any permissioned buyer on the network. Third-party validators, such as Dun & Bradstreet, Ecovadis and RapidRatings provide outside verification or audit capabilities directly on the network.
TYS also automates the on-boarding process and saves the time of new suppliers without the need for suppliers to enter it in multiple different networks. The IBM Supply Chain Business Network can connect to Trust Your Supplier using open industry programming interfaces for access to existing verified supplier information.
“Working with IBM and Chainyard on this blockchain initiative represents a great opportunity for Nokia to further enhance our suppliers’ experience and optimize the onboarding process,” said Sanjay Mehta, Vice President Procurement, Nokia. “Using the latest technology to address a classical challenge will be of benefit for everyone, and further increase the speed of using innovative solutions.”
IBM is employing this network to its over 18,500 suppliers around the world and for onboarding 4,000 of its own North American suppliers in a move expected to see a 70 to 80 percent reduction in onboarding time and a potential 50 percent reduction in administrative costs within its own business.
By 2023, blockchain will support the global movement and tracking of $2 trillion of goods and services annually, according to technology research firm Gartner Inc.