Hyperledger Foundation Hyperledger Global Forum 2021, 11 Jun 2021

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From YouTube: Supply Chain Security – Tackling Compliance, Fraud and... - Mohan Venkatamaran & Isaac Kunkel

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Supply Chain Security – Tackling Compliance, Fraud and Counterfeiting - Mohan Venkatamaran & Isaac Kunkel, Chainyard

Supply Chain Security is front and center in today’s world. Companies are concerned about theft of intellectual property, continuity of supply chains and ensuring that the reputation and quality of their products is not compromised. Consumers on the other hand want assurance that the products they purchase are genuine, meet quality standards and are ethically manufactured. Specific work in area of supply chain security will be discussed as follows: • “Trust Your Supplier” that introduces decentralization, trust and transparency in the supplier qualification process • Asset Track and Trace initiative for manufactured assets for a major company • Secure sharing framework for sensitive documents between business partners • Use of smart tags, IoT and digital identity for securing the shipments of high value products • “Proof of Authenticity” technology for retail products

Session Details & Slides (if available)- https://sched.co/j3dl
Access All Sessions: https://events.linuxfoundation.org/hyperledger-global-forum/program/schedule/

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A

Well, thank you everybody, um I hope you're enjoying uh the global forum so far. It's obviously there's been a lot of great sessions for technical and business everybody's out there meeting new people and learning about how blockchain is being used to solve real real world problems. I think we heard some good examples this morning in today's keynotes, as well as yesterday's I'm isaac hunkle, and I lead the consulting services at chain yard and I'm presenting today alongside mohanven catamaran who's, our cto.

A

We also are a sponsor of the global forum and and very pleased to be working alongside the linux foundation and hyperledger. To put on this event, today we are going to provide a high-level perspective on how blockchain, in harmony with many other technologies, is and can improve supply chain security, to help companies, fight fraud, tackle compliance issues, identify counterfeits and maybe, most importantly, just protect their brands.

A

The information presented today is based on many decades of experience across industries and, more recently, the last five years focused on how blockchain can improve the harmony and manage risk in supply chains.

A

We're going to move very quickly, even though we're getting a late start. I apologize for the technical issues, but we're going to move very quickly and just share key points. The deck is available for a download to you um lower in the screen feel free to ask questions in the chat along the way and if we can't get to them today, we'll we'll get to them um offline with you guys. um We are a digital transformation company out of north carolina, we're part of a bigger company called I.t people corporation.

A

um We have a globally global delivery center in hyderabad india as well, and we we specialize in helping companies gain business value. We have a special focus on blockchain technologies, user experience, user interface, design, cyber security. We have a deep practice in cloud and devops and we are more recently focused on ai and automation, partnering with big companies globally to help them with different areas, including their robotics, cognitive and cognitive efforts.

A

um One other thing I'd like to point out about our company is that we have- uh and you may have heard of a couple sessions this this week- trust your supplier. We operate the global network for supplier, information management and customer onboarding.

A

We've also recently joined the linux foundation, open idle project, which is a property and casually blockchain project focused on improving regulatory reporting, at least as the first use case. We think there will be many other use cases as that advances next slide please.

A

So this is a a high-level picture of a storyboard that mohan's going to walk you through today. It's going to talk about some of the foundational elements for supply, chain security and hopefully, with time permitting we'll, be able to engage with you and answer some questions um about the presentation, as well as talk to you about our vision uh for the future, based on our experiences.

B

All right so um good afternoon, good morning, everybody mohan ranker, sharma and cto of cheneyon, so I'm going to begin with what are today's problems with the enterprise supply chain? So most of the supply chains of today are centralized. It is, uh it is enterprise driven. Each enterprise has got its own erp systems internally or some custom solutions.

B

They're all glued together in order to manage the supply chain and information between enterprises is exchanged through the use of edi or json or xml, and most often they get lost in translation and lead to data quality issues, but other kinds of problems. And finally, you know this supply chain today is controlled by the lead, buyer or the seller. Who is in charge of that business collaboration?

B

Now, if we look at all the issues of why there is a trust issue and the central issues in today's supply chain? Yes, there is a trust issue and the trust spans a number of areas. You know some of it is like product authenticity. Do we know this product that we purchased is real? Do we know how the supply chain processes were handled? uh If a supplier goes out of business or if a supplier cannot deliver, can we quickly switch over to another supplier or what kind of quality of data am I getting like?

B

You know in terms of the consequence of the product, but in terms of the order in terms of the invoice, compliance with good manufacturing practices am I complying. Is my business process complying with good manufacturing practices that have been embodied, siloed processes? You know today, each collab, each partner in the business network is, is in a siloed way. Collaborating their systems are duplicated. The same processes are duplicated, expensive, I.t infrastructure, disparate systems. And finally, you do not have standards consistently implemented across the supply chain. Bh stocks, compliance, be it privacy or any other requirement.

B

So our if you look at a typical supply chain, it's a relation. It's very simple: it's a relationship between a buyer and a seller, but yet it is very complex. A buyer places an order on a supplier or a seller, and the seller then acknowledges that order and then gets a factory or a contract manufacturer to manufacture the product. Now the contract manufacturer in turn, issues purchase orders to suppliers as they get all these components they manufacture the product and then based on a delivery order. They move that product across the supply chain.

B

Now, along this process, there are a number of organizations and people handling this product. It goes through cross-blockingly cross-borders, it is, uh it is processed by transporters by pickers, packers shippers, uh logistics operators and many other uh folks, and so hence it is prone to problems in terms of errors. It uh there could be fraud, there could be counterfeiting and there could be any type of other issues. Obviously we have seen this issue right in the recent uh corvette pandemic. We did see there was a supply chain disruption in the ppe or the supply of.

B

Has you know, sanitation? um You know products we also saw recently the suez canal was blocked and therefore the entire supply chain was disrupted or, more importantly, the lack of availability of chips is disrupting the automobile industry and many other industries right. So we do have to see how can we have a better supply chain that can be trusted in our experience or in our vision? The supply chain, trust is built across four pillars or four legs. You know it starts with the supplier. Supply chain is about uh begins with the supplier.

B

The supplier is the one that deliver. You know that supplies components or delivers a product. We need to trust the supplier. The second is: we need to trust the product right, the product that we purchase. We want to make sure it has been manufactured with the right quality you can trace, where the product, the provenance of the product, uh what where the pieces, where did they originate and how they were all put together or we do want to know. If it is, you know proof of quality or it does.

B

It include conflict, minerals, bad in a child level practices. We also want to trust the process, because most of the problems in the supply chain happens along the way where a you know, a fake product is injected into the supply chain or some of the cross-border compliance issues like lack of documentation. So how can we bring more trust into the process and finally, identity?

B

Which means we not only do we need identity of the suppliers or the business participants in the network, which is people. We also need product identity. You know by looking at the product can we correlate it to all the events around the product, including proofs that the product was manufactured or any other verifiable claims? And- and the third thing is things you know- iot devices and other sensors are watching this entire process right. You have cameras in the shop floor to all over.

B

So all these we have to be able to trust that they did the right things along the way. So, let's see, if we have to tackle the problem of supply chain, we have to take a very holistic approach. It's not blockchain alone, or it's not aml alone, or it's not iot alone right.

B

So we do have to look at all the technologies that are available and depending on the product and the type of supply chain, we need to have a holistic solution like whether it's a petroleum supply chain, retail supply chain, manufacturing technology supply chains, media supply chains, each one of those supply chains require a combination of solutions, but they require current technologies to be applied very effectively so moving forward, let's see the first technology that we have always got used to is blockchain.

B

That's why we're all here blockchain allows us to bring trust, transparency, mutability privacy into the mix and that's a very key element of the trusted supply chain. We also rely on prior certificates like x519 certificates, that can be associated with products and parts, and so they can all be correlated and can be cryptographically verified.

B

The third is: how do we track the asset itself? You know the asset life cycle. We also want to track the trial. You know track the acid provenance.

B

We want to make sure that the asset is compliant and it is sustainable in terms of itself in terms of the manufacturing process, and so we do want to have some auditability, and that is all provided by the blockchain.

B

The second key technology is iot and aiml. We did talk about it briefly, but iot uh in the shop floor keeps track of the manufacturing process and how labor is treated on a truck or on a supply chain. It is looking at whether the truck left, the ego fence that it was supposed to be in it, also looks at whether the product was opened and exposed to light or subjected to temperatures that it is not supposed to be very critical and the supply chain.

B

The iot data then gets translated and recorded on the blockchain, but also gets translated into verifiable claims that one can associate with a contain. You know a container or a consignment, or a shipment or a ship unit and finally, to the product itself. Machine vision is another important technology supported by aml.

B

You know if, if pictures are taken of the manufacturing process or all along the supply chain, those pictures can be associated with the batch or the lot or the product itself, and if an end consumer receives this product, they can take images of their product and they can compare it with what ai says and verify if the product is truly authentic, whatever they received- and this has been applied right, so there are companies that actually apply this like gucci and louis vuitton.

B

The next one is about tags, you know, and today, tagging technology has come a long ways. You know there are copy proof tags. You know that cannot be duplicated. uh You know, for example, in this picture. What you see on the top is a medical product. It is actually a carton level zampic, it has got.

B

You know the copy proof tag on the left side. It's a soul tag. The the soul tag has got a 3d image, a 3d um section in the circle which is created by molecule droplets, and that has been encapsulated into the qr code on the side. So there are different tagging technologies available. There are thermal sensitive tags, there are rfids, nfcs, 3d, base tags and also standards. Gs1 standards define how do you package and how do you label a product?

B

Finally, you know we do have digital identity standards. You know everyone in hyperledger now knows eris and indy. They all apply the digital identity standards defined by the digital identity foundation, and it's all it's all about a digital identity that can be universally resolved and they can all point to verifiable credentials and these credentials can be applied and the identity can be applied to product things and people so applying the digital identity. As a way, an example of a digital identity is shown in that little square box.

B

You know it's got the id and it's uh it's got the name space and then the actual identity. For you know in the in the last part, and it can be connected to profile of the product. It can also be connected to other verifiable claims. So using this method and tying it to the serial number or the model number or the lot number package, we do have a truly traceable mechanism for the product or the asset.

B

Now. Lastly, if you don't have a great user experience, your entire, uh you know, supplier trusted supply chain mechanisms are going to fail. People want a very simple interface by which either they can scan a qr code. That's qr code, maybe a digital identity or a serial number. It takes uh it automatically to the manufacturer's database for the product profile to a blockchain database for supply chain events and any other aiml database for proofs of authenticity or verification.

B

So it has to be very simple and even the proof of purchases have to be with embedded secrets that only the butchers are known so that nobody can tamper with it. Now, if you apply all these things that we see in the four legs, you can see it a later process right at the top. The bra you know, the the box first first is to qualify all our suppliers and partners. So once we have qualified our business partners, the next step is to make sure that the product is properly labeled tagged.

B

So whether we apply a serial number and assign a tag, we can also assign digital identities. We can assign prior certificates x, 509 certificates or root certificates that tie the product and the components together. We can also apply digital identity, and we can finally tie the iot machine vision, images to the product itself. So now the product has been secured with identity and standards and verifiable claims created by iot and aiml as the product moves along the supply chain.

B

There are way that the did can be used to resolve the product authenticity at any point in time. You can also scan the process and the events that happen uh by the driver at the warehouse by the 3pl in in a distributed location. All those scans are captured. And, finally, you know at the end retail level one can use a simple scan to go.

B

You know retrieve all this information universally so that one can determine whether the product or the retail store is authentic or not, and the end customer can get a proof of purchase that is embedded with secrets and that secret can also point to the authenticity of the product that they purchased.

B

A very simple architecture here is combining all these things together. Is you have the blockchain here you have the client application and the connected to the iot gateway, the api gateways to the enterprise, erp systems, a beautiful user interface, off-chain on-chain, iot databases that are connected to aiml and that can process and give us predictive analytics um and classification data and, finally, uh key management, so that there is security in the system, so in, in our view, I think, like it is possible to have a trusted supply chain. The cost of uh try.

B

You know, securing the supply chain depends on the type of product and how much we want to invest in each one of these technologies. With that, I'm going to hand it off to isaac to take us through the rest of it, hey zach,.

A

Hello turn off me to avoid the echo um I think you, you missed the there's a vision slide before this, but our uh our vision is to basically take a look at all of these different uh areas that are pretty siloed today, and we do think that some at some point there will be um different solutions that will come together to bring more transparency to the whole supply chain, and we have we see this today in solutions that are out there, like trade lens who's, helping with the cross-border problem supplier supply chain, financing, solutions that are out there um trust your supplier, the walmart, um canada, logistics solutions.

A

We see blockchain being applied in different silos today, but we see that those those things will come together and work together, whether they're through a blockchain interoperability or just through apis. We don't know, but we know that these this is part of the journey, is to take off small chunks and and find business value in the near term. So this is our.

A

This is our our perspective on where things are going with the in the vision um you know, and it just goes on and on in terms of life cycle of products and recovery of products, and and we do see it as all highly connected, even though today we treat these things as silos on the next slide mohan we we are.

A

Basically, this is something we've been researching and working on for years now, and there are certain projects that we have worked on, that are, are part of the different supply chain and helping to secure the supply chain, sometimes upstream, sometimes downstream and sometimes in life. But these are just examples of some of the things we've done, that are part of for the most part supply chain, related uh solutions or I'm sorry, supply chain, related um projects and or complementary to the supply chain uh in terms of business and functional needs.

A

Beam is one we have that's about. Asset life cycle management worked on a couple that help. I won't go through all of them, but secure document sharing key to so many different projects, not just supply chain and having uh being able to have immutable and trusted uh documents they can go back back on, can improve uh transactions and trust so much part certification uh that mohan alluded to earlier. The x 509 certificates. That could be part of your blockchain.

A

um I mean we mentioned trust your supplier earlier um having wallets that can store different credentials or tokens that are related to what you're doing this one's a little uh skew to supply chain specifically, but there's some opportunities. There trust your product, it's a solution, that's specifically about brand protection, fraud, prevention and being able to use some of those unique iot devices and different tags to um help uh manufacturers protect their brands um and avoid uh fraud, and uh that's going on in marketplace heavily today in some industries, more than others.

A

um We've even seen things that in life in terms of assets being able to track software licenses as a service- and this is something we worked on as well in terms of in life of assets that are deployed, and then one one other project worked on was business.

A

Compliance, it's not so much supply chain as much as is making sure that when a manufacturer is putting business terms out to a one of their distributors, making sure that those business terms are being followed when they're, when they're selling it out to their um clients and that there's that could be trust across that that set of transactions next slide- um and I mentioned trust your supplier again. This is one that's nearing to our hearts, but um I don't know there was a couple of presentations on this already.

A

But this is one that's a global network. It's got more than 30 fortune 500 companies as operating as buyers, um another dozen or so third-party verifiers and and over 5000 suppliers who are working together to facilitate their transactions in terms of their supplier, information management and the onboarding process. It's not doing any of the transactions in terms of the actual invoicing and those kind of things, but that is obviously part of supply chain as well taking care of getting the payments done in a trusted way.

A

But this is a a great uh network about qualifying verifying and onboarding, and this is significantly reduces uh risk for manufacturing. For buyers and manufacturers and if and more importantly, accelerates the time to that first transaction, so there's big value in it for suppliers as well, not to mention the operational efficiencies that these companies are saying.

A

And well I'll turn this one back over to you for our future.

B

So yes, so what we see in the future- and we have to be prepared for it right. So as we architect these solutions, we don't want these solutions to become siloed right. So so the way we see it is that blockchain powered ecosys new ones are constantly evolving right. There is a cold chain which is in crop. You know which has been built by chronicle, but then hyperledger has got a trusted supplier.

B

You know in a built-in fabric and there are many other solutions, but there are some level of maturing of each one of these networks. We also see that supply chain documents such as poso and a bill of lading and others essentially will become contracts that are smart contracts and those smart contracts will be universally agreed upon by all the business partners. So there is no issues around will become ultimately law right.

B

We also see the role of the erp will get reduced to serve more internal business processes as opposed to working outwards with other organizations, tokenization of identity process assets and powering transactions using stablecoin will become more prevalent. We already see assets have been have a digital twin, the assets, the transactions around the assets and so on. In future there is a potential for I've gone the opposite way. So forgive me for that, but in the future there is a potential for networks to converge, expand exist or coexist migrate, interoperate, so we cannot have.

B

There will be many different supply chain projects, but then they all have to coexist together or either they have to migrate or merge with other engineered. You know other networks, then you obviously ai ml iot and even you know, augmented reality and virtual reality will start playing a role because virtual reality and augmented reality are already do helping uh in terms of service management manufacturing processes. But then the blockchain will help secure, whatever decisions were made using arvr and there is trust in the actions that have been taken.

B

And finally, you know our rather another aspect is decentralization: will drive more focus on addressing supply chain errors, fraud, counterfeiting, that's what we discussed so far. Finally, expansion of data privacy and protection of intellectual property rights will become pervasive, so every solution that we build where there is uh collaboration in a public space will have to apply these regulatory requirements.

B

So that's how we see things going in the future, and so our architectures have to support this in the supply chain. Space with that, I do want to say thank you and I'm going to turn it over to isaac and myself again to answer questions that may be coming along.

A

Yeah, thank you moment so everybody there's you know: we've had about 35 people on the session today and um we're happy to answer any questions through the chat. um There's a q, a button on the right side and- and we can answer those questions- we're happy to share the slides uh either directly or through hyperledger.

A

There's links provided and um if you want to have a chat about any of this or other blockchain projects uh that you're doing feel free to visit our booth at the expo and talk to either g.j joseph tom, hickman or myself and, of course, you're free to reach out to mohan or myself anytime email, that's available at hyperledger as well. So with that are there any q a.

B

So I don't see any questions in the anticipation, but you know so you know in the interest uh you know we do have do we have time or have we consumed our time.

A

We have, we are actually right at time now, so we started.

B

Like all right, so thank you so much uh you know and as isaac said, you know any questions that are there. Please shoot it over to us and we will be very happy to answer questions or even uh have a brainstorming and thought-provoking discussion.

A

All right, thank you. Everybody thank.

B

A

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