A distributed blockchain ledger for supply chain

Abstract

Affordable and reliable supply chain visibility is becoming increasingly important as the complexity of the network underlying supply chains is becoming orders of magnitudes higher compared to a decade ago. Moreover, this increase in complexity is starting to reflect on the cost of goods and their availability to the consumers. Optimizing the physical distribution phase in supply chain by providing increased visibility to trading partners can directly reduce product cost. Current supply chain information systems often lack the ability to cost-effectively relay ground truth in- formation in near real time to all stakeholders and most importantly to the supplier and the customer during the transport of the shipment. This thesis presents a solu- tion that addresses this gap through a distributed architecture. The solution enables small, medium and large businesses to interact in a dynamic and shipment-centric manner through a private blockchain sub-ledger that digitizes the transfer of custody for each shipment. Information in this private ledger is augmented by a public event ledger that reflects the movement of the shipment in real time. Third party monitors are engaged in the validation of the geolocation of the shipments by posting their physical proximity in the form of events to the public ledger.