IBM, Chainyard Launch Blockchain Network for Supply Chain Management

By Fred Donovan

August 06, 2019 - IBM is teaming with Chainyard to launch a blockchain network to boost supply chain management for pharmaceutical companies, as well as firms in other industries.

The new blockchain network, called Trust Your Supplier, is designed to improve supplier qualification, validation, onboarding and life cycle information management, IBM explained in a news release.

Drug company GlaxoSmithKline is partnering with IBM and Chainyard on developing the new network. Other corporate partners include Anheuser-Busch InBev, Cisco, Lenovo, Nokia, Schneider Electric and Vodafone.

Dig Deeper

Healthcare Blockchain Could Save Industry $100B Annually by 2025
ACN Is on Healthcare Blockchain Journey to Ease Admin Burdens

Garter estimates that by 2023, blockchain will support the global movement and tracking of $2 trillion of goods and services annually.

The Trust Your Supplier network will create a digital passport for supplier identity on the blockchain network that enables suppliers to share information with any permissioned buyer.

Blockchain uses a permissioned-based data sharing network, which should reduce the time and cost associated with qualifying, validating, and managing new suppliers. Third-party validators will provide outside verification or audit capabilities directly on the network.

The IBM/Chainyard blockchain network can also connect existing procurement business networks by relaying supplier data required for exchanging purchase orders and invoices, without the need for suppliers to enter the data in multiple networks, and automating on-boarding process to those networks.

The IBM Supply Chain Business Network will connect to Trust Your Supplier using open industry programming interfaces for access to existing verified supplier information.

By using a decentralized approach and an immutable audit trail built on blockchain, Trust Your Supplier is designed to eliminate manual processes and reduce the risk of fraud and errors, IBM explained.

"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."

IBM will initially onboard 4,000 of its own North American suppliers onto the Trust Your Supplier network over the next few months. IBM estimates a 70 percent to 80 percent reduction in the cycle time to onboard new suppliers, with a 50 percent reduction in administrative costs for its own business.

Latest News

IBM, Chainyard Launch Blockchain Network for Supply Chain Management

IBM is teaming with Chainyard to launch a blockchain network to boost supply chain management for pharmaceutical companies, as well as firms in other industries.

Next in Latest News