How Walmart Canada Uses Blockchain Technology To Solve Supply Chain Problems

Walmart has long been known as a leader in chain management. But it is not strong enough to avoid the problems that have plagued the transportation industry for so many years. This means that significant discrepancies in the information the sender receives in the invoice and the payment process must be reimbursed, which can lead to payment delays.

Walmart Canada pioneered the solution. It uses blockchain technology, the distribution of technology, to create technology applications to manage receipts and payments to 70 third-party shipping companies.

The first step started when John Baylis and his team at Walmart Canada began to think of new ways to solve these problems. The record is huge, and Walmart Canada uses its trucks and third-party carriers to deliver over 500,000 shipments per year to distribution centers and stores across Canada.

The essential services of transporting large loads (mainly damaged goods) across borders, time zones and weather conditions are difficult to operate. All product shipments should track information such as load stops, fuel and temperature data, etc. This information should be calculated independently and included in each remittance statement.

Because postage requires more than 200 pieces of information, discrepancies often occur in the billing and payment process, and 70% of the postage has to be negotiated, higher prices and inconvenient for carriers to pay.

The assessments have identified the root of the problem. Wal-Mart Canada and its employees use a lot of information that cannot communicate with each other. It takes a balance of the book, an inconsistency, a lot of effort and time.

A tech manager at Walmart in Canada called for the creation of a blockchain network to streamline processes, which will allow companies to overcome conflicts and create an information location for each party.

However, others do not believe it because at that time blockchain technology was not being used for business critical applications. In addition, blockchain comes in many forms. Will it be necessary to create a public channel or cryptocurrency joint venture to resolve the issue?

To meet this challenge, Walmart Canada turned to DLT Labs, a leader in the development and implementation of innovative enterprise-class solutions.

Shortly after, Bison Transport, an employee of Walmart Canada, joined the network development team. A first trial involving only Walmart Canada and Bison Transport was thoroughly tested and published in January 2019.

The pilot fulfilled this expectation and delivered a network called DL Freight to 69 other crew members by March 2021.

The system continuously collects information on every step of the shipment, from the carrier's invoice to proof of shipment and payment authorization. This information is captured and synchronized in real time and is visible only to all participants in the exchange.

In any case, the system has reached greatness. Over 70% of my rates were negotiated before using DL Freight. Today, less than 1% of mail-related disputes are inconsistent and these disputes can be easily reported and resolved quickly.

Gone are the days when payments could take weeks or months and carriers could receive payments on time.

Here's Walmart Canada's experience of another company interested in building a blockchain network.

1. Integration is important.The partnership of Bison Transport Logistics, which owns one of the largest vehicles in North America, allowed the design team to understand the issues they tackled through the operator's service, think and to ensure that the solutions will apply to Walmart logistics with Walmart. partner.

2. Comparison of the advantages and disadvantages of using interlocking chains and public chains.Public channels that anyone can join without permission, allow users to view blockchain data without restriction, cut out middlemen, and let people decide whether to work on their own.

It is ideal for digital devices (NFT, etc.), Crypto and certifications such as personal certificates or technical certificates.

However, joint ventures that require permission to participate are necessary for the business, as access is usually limited to accredited members and only parties with which they are directly involved can see certain information exchanges. It better matches industrial level security.

For this reason, Walmart decided to adopt the integrated chain of Hyperledger Fabric, an open source platform.

3. Recognition of business policies and procedures.Every tough business has to adjust and change procedures and costs, which is the same for both businesses. A prerequisite for developing a blockchain-enabled system is that all parties agree to all accounting and business policies applicable to the network.

For Walmart and its employees, this means using all unique user information (username, payment terms, contract terms, terms and conditions). ) combined with administrative information such as fuel prices and tax rates. Then all the third parties must agree on the model that the blockchain will use to count all the invoices.

The DL Freight blockchain combines all real-time content information during each unique shipping process, including data such as fuel prices, miles, and delivery delays. The system creates invoices that change over time as costs increase.

4. Develop a concept of identification and equivalence.Automatic identification and measurement tools can and should be done in a blockchain system. This can prevent errors and identify ways to improve performance.

For example, a haulier's transportation and fuel information can be compared to Internet of Things (IoT) data from a separate unit of the truck, and any inconsistency was reported immediately.

These evaluations and equations create a self-evaluation. When multiple carriers load between the same origin and the same location at the same time, the carrier's performance history is documented and compared for each step. Continue to help Walmart and its suppliers improve their operations.

The financial value of the automatic check and the balance on the payment. For example, all financial services, such as carrier remittances for payment, can work because the system automatically performs all financial calculations and adjustments regularly throughout the process.

Indeed, the blockchain system does not need to ensure that the invoice is valid and valid. This has resulted in better management of venture capital and business creation for financial companies which can now provide financing at all levels of the chain.

5. Do not attempt to replace old computer procedures.The inheritance process may be old and irreplaceable, but they still have their own unique quality and information that is valuable to them.

Therefore, regardless of the change in the inheritance process, every blockchain system must be built on each party's inheritance process. Being able to live with the inheritance process is also a big advantage.

One of the biggest benefits of the blockchain platform is that the port-to-port supply chain provides a clear vision for building the trust of Walmart Canada and its employees. The main objective of the initiative is to eliminate conflicts and prevent expenditure. However, blockchain solutions also provide insight into key operational improvements for Walmart and its partnerships.

For example, when transporting goods, you can determine the safest or best way of time and fuel consumption, and optimize by car, route, payment and even good journey times. that is to say. day or night).

Blockchain systems can also help solve the big problem of keeping incoming items on large devices. By regularly updating the estimated arrival time of trucks and organizing with shipping centers or retailers, you can streamline your delivery process again.

The success of the Canadian Walmart system is a testament to the potential of the blockchain. It shows that the use of technology can dramatically improve operational and financial benefits and improve customer relationships.