Blockchain & Logistics

“Blockchain in Transport, concrete use cases

Martijn Siebrand Program manager Supply Chain Finance TKI- Dinalog 3-11-2016

Content

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Dinalog Blockchain Logistics + Blockchain Supply chain solutions?

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Dutch Institute for advanced Logistics?

Collaboration for economic competitiveness Logistics is one of the nine priority sectors in Dutch economic policy. Government, business and academia work together to increase competitiveness, in business climate, education, infrastructure and innovation.

Ambition logistics: In 2020, the Netherlands holds an international top position 1.  in handling transport flows through the NL, 2.  as supply chain coordinator of international logistic activities and 3.  as a country with an attractive innovation and business climate

Supply Chain Finance definition:

“SCF aims at the optimisation of the flows and allocation of financial resources in a supply chain, requiring the collaboration of at least two primary supply chain members, with the aim to improve*: § Efficiency (financial performance), § Effectiveness (delivery performance); § Sustainability (social performance).

*De Boer, R., van Bergen, M., & Steeman, M. A. (2015).

Supply Chain Finance, its Practical Relevance and Strategic Value. The Supply Chain Finance Essential Knowledge Series. Zwolle.

Logistic Service Providers and SCF, international research

This research aims to increase the number of LSPs that add financial services to their original service portfolio of transportation, handling and storage by filling in the knowledge gaps. We both look at current usage of SCF by LSPs and possible future developments in the usage of SCF by LSPs.

Blockchain

Blockchain only for financial transactions?

Evolution of creating trust

Key Concepts of blockchain

Blockchain transaction

Blockchain and finance register

Logistics + Blockchain

Connected Drone

Connected Locker for last mile

How about supply chain solutions?

For instance: how consumer could check the authenticity of a bag on the blockchain Goods flow

Possible blockchain informa5on flow IT Infrastructure

• No cost for redundancy • Scalable • Permant up-6me • Strong ID controls

• Auditable by third par6es • Possibili6es for (automated) finance, customs, op6miza6on, etc.

• Transparency

Blockchain & logistics innovation Overall project objective:

The combination of the ledger technology with smart contracts have the potential to form a powerful logistics innovation platform. We will use existing, deployed, and proven blockchain technology as the foundations of our “core business infrastructure�, to be tested with 3 use cases. The aim of this project is to unequivocally show the business value of the blockchain in logistics.

Projectlead:

Blockchain consortium

Use cases in project:

Identified use cases: § Using digital consignment notes to trigger smart contract finance for carriers § Asset based inventory finance § Enabling a Circular Economy Other use cases to be explored……

Advantages: LSP: § Value Added Service, like fiscal representation and Insurance. § Creating the possibility of a long term customer relation. § LSP creates a ‘goldmine’ of big data on financial and logistic transactions and risks. This gives opportunities to develop new forms of service.

Banks and Insurance: § Lower cost of transactions and risk profile by sharing information and “right of retention”. § Economies of scale owing to consolidation of inventory on LSP’s premises. § Inventory finance: from niche product to a mainstream product.

SME trader/shipper: § Access to a new form of financing which was too expensive for SME’s up to now.

Future • Possible directions: – Forward integration: • reverse factoring of invoices from wholesaler to his client – Backward integration: • financing of in-transit inventory and raw materials – Specialized solutions: • for example commodity traders – IoT integration: • containers

Possible use-cases : • “Material passport” • Releasing of containers • Operational Supply Chain Finance

SCF Community

Blockchain size

Hashrate Distribution

Fintech, SCF and Logistics

TKI-Dinalog driven by open innovation

Martijn Siebrand 0031624621598 siebrand@dinalog.nl