Walmart Canada’s blockchain freight supply chain proving its value
One of the biggest retailers in the world is using blockchain to transform its supply chain.
【 Published by cointelegraph | Editor: RACHEL WOLFSON 】
While it’s notable that some enterprises are beginning to deploy blockchain solutions this year, it’s important to point out that very few have done so. A report from Everest Group Research published in June shows that while 79% of projects have completed their pilot phases, only 7% have been deployed to production in 2020.
That being said, it’s impressive that one of the world’s largest retailers has successfully deployed and implemented a blockchain solution. Walmart Canada has adopted DL Freight, a blockchain-based supply chain platform, as its national standard for freight invoices and payment management to be used among 60-plus transportation carriers.
Although Walmart Canada and Toronto-based blockchain firm DLT Labs initially launched a blockchain-based platform for supply-chain automation in November 2019, DL Freight has advanced considerably over time. The solution has even been chosen by the Council for Supply Chain Management Professionals as one of the six finalists for the supply chain innovation award to be presented at its annual conference in September.
Loudon Owen, CEO of DLT Labs told Cointelegraph that Walmart first approached the firm in 2018 to pilot a customized blockchain-based system that would track deliveries, verify transactions and automate payments and reconciliation for Walmart Canada and its carriers:
“After tens of thousands of loads in the supply chain, we proved that our solution worked. By the end of August 2020 the system had processed over 150,000 invoices, with fewer than 2% resulting in disputes.”
DLT Labs’ platform eventually became a game-changer for Walmart Canada. Its vice president of transportation, Francis Lalonde, told Cointelegraph that DL Freight is part of a major $3.5 billion investment in Walmart Canada’s business, which includes transformation of the company’s complex supply chain: “Blockchain is enabling a material advance in our smart transportation network, with expedited payments, extensive cost savings and other benefits among our supply chain.”
Although freight invoicing has historically been complicated and demanding, Lalonde noted that the challenge was not completing the invoice itself, but rather everything leading up to it in the supply chain.
It’s difficult for large companies like Walmart to improve transparency on the goods being transported day and night by land, sea and railway between different countries. Even worse, Lalonde noted that the detail and complexity of that information has to efficiently be managed across the supply chain, which is challenging:
“Each invoice reflects a host of variable charges, deals with over 200 data points and there are detailed invoices for each of our 500,000 loads delivered annually. And each of our many carriers has their own systems, business processes and technology. All this information needs to be tracked, synchronized and contributes to invoice generation.”
Owen further noted that of the 500,000 loads processed in the past year via DL Freight, only 2% were recorded as discrepancies, representing a 97% reduction from previous levels. According to Lalonde, supply chain complexities were resulting in disputes in 70% of all deliveries and invoices previously being made by Walmart Canada. In turn, the enterprise turned to DLT Labs for a blockchain-based solution to reduce supply chain errors.
■ Source: cointelegraph
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