The Canadian division of Walmart has launched a blockchain-based
supply chain that includes freight tracking and payment processing. The retail giant
claims it is the world’s largest full production blockchain solution for
any industrial application.
The new system, built in partnership with DLT Labs, called DL Asset Track automates the tracking of freight shipments and invoice creation; it uses IoT sensors and GPS tracking in semi-trailer trucks as well as a web portal and a mobile app where information can be input manually by operators and suppliers. The system track deliveries, verify transactions, and automate payments among Walmart Canada’s 400 retail stores across Canada.
Walmart’s carrier partners move over 500,000 loads of inventory nationally, and creates an extraordinary volume of transaction data. This new dynamic and interactive blockchain technology platform helps in creating complete transparency between Walmart Canada and all Walmart’s carrier partners.
Traditionally, supply chain invoices have been generated primarily through third-party EDI (electronic data interchange) systems. They often depend on manual data input. Walmart’s blockchain network will eliminate the need for third-party invoice creation and reduce both processing time, and – perhaps more importantly – invoice disputes and reconciliation.
From 50% to 75% of all invoices experience some form of dispute that requires resolution, and those disputes can take weeks or even up to two months to resolve, according to Louden Owen, CEO of DLT Labs.
$8 Trillion Industry
Logistics and transportation is an $8 trillion industry and as much as $140 billion per day can be tied up in disputes or settlements between supply chain participants. Disputes could arise because information between supply chain participants often varies, depending on data input personnel. Having a real-time, actionable data for invoice creation, and a smart contract with terms for each carrier helps head off any payment disputes, Owen said.
“This proves the high
value of blockchain and sets the stage to revolutionise supply chain management
and logistics, due to its ability to enable secure information sharing, manage
trust, and reduce waste in multi-partner operational processes.”
– Louden Owen, CEO of DLT Labs