Enhancing Supply Chain Efficiency with EDI and Blockchain

Client Need

 Client is a global manufacturer that sources raw materials from various suppliers around the world to produce their products. They face challenges such as delays in information exchange, inaccuracies in data, and lack of transparency in their supply chain.

Solution: To address these challenges, Client decides to implement both Electronic Data Interchange (EDI) and blockchain technology into their supply chain management process.

Implementation

1. Electronic Data Interchange (EDI): Client integrates EDI, which is a standardized electronic communication method, to facilitate the exchange of business documents (850, 810, 855, 860 867 856 and 997) with their suppliers.

Benefits

1. Faster communication: Manual processes are replaced with automated data exchange, reducing communication time.
2. Reduced errors: Automated data entry minimizes the chances of data inaccuracies and manual input errors.
3. Improved accuracy: Real-time data exchange ensures that all parties have access to the same up-to-date information.
4. Streamlined processes: Faster document exchange speeds up order processing and reduces lead times.
5. Blockchain Technology: Client is also implementing a blockchain-based platform to enhance transparency, traceability, and security in their supply chain.

Implementation Steps

1. Supplier Onboarding: Suppliers are onboarded onto the blockchain network, each with a unique digital identity.
2. Smart Contracts: Smart contracts are created to automate and enforce various supply chain processes, such as payment release upon delivery confirmation.
3. Data Sharing: Key supply chain data, such as shipment tracking, quality reports, and compliance certificates, are recorded on the blockchain.
4. Traceability: Each product is assigned a unique identifier that is recorded on the blockchain, enabling end-to-end traceability.
5. Security: The decentralized and tamper-resistant nature of blockchain ensures data security and prevents unauthorized alterations.

Benefits

1. Enhanced transparency: All stakeholders have real-time access to immutable data, improving visibility into the supply chain.
2. Improved traceability: The blockchain records the journey of goods from source to destination, aiding in recalls and quality control.
3. Reduced fraud: The secure and transparent nature of blockchain reduces the risk of counterfeit products entering the supply chain.
4. Efficient dispute resolution: Accurate, tamper-proof records facilitate quicker resolution of disputes between parties.

Results: By integrating EDI and blockchain technology into their supply chain management, Client experiences significant improvements in efficiency, accuracy, transparency, and security. Communication and data exchange are streamlined, leading to reduced delays and errors. The blockchain-based system ensures that all parties have access to real-time, tamper-proof information, enhancing trust and collaboration across the supply chain.

Overall, this case study illustrates how the combined use of EDI and blockchain technology can address challenges and revolutionize supply chain management for a global manufacturing company.

Tools & Technologies

IBM Sterling Integrator, Microsoft 365 dynamics, MFT Gateway, MuleSoft, Orderfull, SQL Server,

IBM Blockchain Platform