IBM and blockchain consultancy Chainyard announced a new blockchain-based network designed to improve supplier validation, onboarding and life cycle information management “Trust Your Supplier Network”.
Traditional methods of managing suppliers often involve 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 throughout the lifecycle of a supplier. By using a decentralized approach and an immutable audit trail built on blockchain, Trust Your Supplier is designed to eliminate manual time-consuming processes and help reduce the risk of fraud and errors, ultimately creating frictionless connectivity across supply chains. 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.*
“This blockchain initiative represents a great opportunity for Nokia to further enhance our suppliers’ experience and optimize the onboarding process,” Sanjay Mehta, vice president of procurement for Nokia, said in a statement. “Using the latest technology to address a classical challenge will be of benefit for everyone, and further increase the speed of using innovative solutions.”
“TYS plans to add additional functionality over time as the network scales,” said David Post, managing director of Blockchain Ventures at IBM.
With over 18,500 suppliers around the world IBM begin using the Trust Your Supplier network initially onboarding 4,000 of its own North American suppliers over the next few months. IBM Procurement projects a 70 to 80 percent reduction in the cycle time to onboard new suppliers, with a potential 50 percent reduction in administrative costs within its own business.
The Trust Your Supplier network is currently in limited availability with existing participants with plans for commercial availability later in Quarter 3 of 2019. TYS is built on the IBM Blockchain Platform hosted on the IBM Cloud.