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IBM Chile CTO highlights blockchain potential for supply chains

May 28, 2020

By 2022, more than 176 million people in Latin America are expected to buy goods and services online. And this need is growing with the coronavirus COVID-19 pandemic. In this phase, Ignacio Chanes, CTO of IBM Chile, wondered if this was a call to transform supply chains, and shared his analysis with Cointelegraph in Spanish to highlight the potential of blockchain technology.

“If we look into the future, it becomes increasingly clear Companies need to work to strengthen supply chains, make them increasingly resilient, and help them deliver products“He expressed.

Then he said that worldwide Supply chains are exposed to new volatile conditions and are challenged beyond their limits: “While the current focus is on maintaining supply and meeting customer needs, companies need to think about how to respond to these situations, prepare for the next disruption, and at the same time add value to their end customers, and here technology becomes fundamental Allies to support companies on this path and to strengthen chains with real-time information and decisive action. ”

IBM Chile CTO highlights blockchain potential for supply chainsIBM Chile CTO highlights blockchain potential for supply chains

With this in mind, he stressed the importance of enabling better responsiveness on three fronts. “

1. Visibility and predictive alignment of events

He invited Imagine to a “control tower” that helps supply chain professionals with predictive data and recommendations. This would enable them to make faster, smarter decisions about managing supply chains.

Artificial intelligence would act as this “control tower”. He explained it this way: “On the one hand, it would make potential interruptions visible throughout the chain, including inventory, storage phase and everything related to equipment and its maintenance. On the other hand, we could pre-influence these possible mistakes, which would ultimately affect experience and customer satisfaction. “

2. Digitization of the supply chains

As in other industries, the functioning of world trade depends on the efficient exchange of information, especially documents.

While business and government ecosystems around the world are now digitizing processes and automating bottlenecks; I confirm that International trade has gone through a slower digitization process due to its formality and the associated bureaucracy.

When asked: How does technology make this process easier? He answered: “The truth is that the development of blockchain technology frees the industry from manual processes and legacy systems that compromise document transparency, accessibility, and visibility. A leadership that searches for hyperconnection to achieve exponential learning and efficiency in the system. For example, more than 50 ports and terminals in Latin America are part of the TradeLens network, which brings data into the network and can make predictions based on this information. “

3. Traceability

In connection with this digitization and closer cooperation between the parties, the blockchain also enables traceability. This means that all participants in the system know the origin, the location in real time and the status of their products throughout the chain. In this way, companies can develop more accurate models to predict supply and demand, localize the supply of raw materials and restructure contracts.

Chanes recalled that one example is the IBM Blockchain-based Food Trust network, which monitors food and products from the time they are made through to consumer selection in the supermarket. “Various retailers around the world, such as Carrefour or Nestlé, and manufacturers in our region are currently part of the network to reduce waste and help food and distribution chains not break,” he emphasized.

Work for more efficiency

In conclusion, Chanes thought, “While no one can predict what will be available tomorrow, we can work today to build a smarter and more efficient global supply chain and prepare companies to be stronger. Companies can use artificial intelligence and blockchain, among other things, to transform the unforeseen into the expected and be better prepared for tomorrow. “

TradeLens, IBM and Maersk

More than 50 Latin American ports and terminals contribute to the blockchain network of TradeLens, IBM and Maersk. This was reported to IBM on October 24 last year by a statement to Cointelegraph in Spanish.

“Five of the six largest global container transport lines, which make up more than half of the world’s shipping capacity, enable cooperation between trading partners and, thanks to the digitization of trade flows, provide greater efficiency and insight into the entire global chain,” said the statement on this initiative.

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