Author: Jagdish Kumar, India
Australia based Commonwealth Bank has completed its first Blockchain based deliveries by successfully shipping 17 tons of almonds to Hamburg, Germany.
The bank along with global agriculture player Olam Orchards Australia Pty Ltd, Pacific National for rail haulage, port landlord Port of Melbourne, stevedore Patrick Terminals and shipping carrier OOCL Limited were involved in the first global trade.
The bank used a new Ethereum blockchain platform underpinned by distributed ledger technology, smart contracts and the internet of things (IoT) to facilitate the trade experiment, tracking the shipment from packer to end delivery in parallel to existing processes.
Ethereum currently has the most development activity globally, and offers the functionality we require, the bank said.
Speaking on this, Commonwealth Bank Australia (CBA) Managing Director of Industrials and Logistics in Client Coverage Chris Scougall said, “We believe that Blockchain can help our partners reduce the burden of administration on their businesses and enable them to deliver best-in-class services to their customers.”
“Our Blockchain-enabled global trade platform experiment brought to life the idea of a modern global supply chain that is agile, efficient and transparent,” Scougall added.
“By bringing together partners from across the end to end supply chain and developing a new platform underpinned by emerging technology, Blockchain and IoT, we were able to prove a concept to modernise global trade,” CBA Managing Director of Global Commodities and Trade Alex Toone said.
The platform digitises three key areas of global trade – operations, documentation and finance – by housing the container information, completion of tasks and shipping documents, on a purpose-built Blockchain.
Partners were able to view and track the location of the shipment as well as view the conditions, such as temperature and humidity inside the container, via four IoT devices. This level of data provided partners in the supply chain with a greater level of transparency and efficiency regarding the location, condition and authentication of the goods being transported.
Olam Orchards Australia Pty Ltd Supply Chain Manager Emma Roberts said, “This project has shown that through collaboration from all parts of the supply chain that this can be achieved.”
The Blockchain-enabled supply chain allows partners to upload and access key documents, such as bill of lading, certificates of origin and other documents required by customs, which streamlined these processes.
Chief Financial Officer of Pacific National Gerhard Ziems said that the project is unique as it looks to re-imagine how the supply chain communicates and shares information. Simple access to this information provides us with an ability to better utilise our assets and provide customers with better, more efficient services.
While Ashley Dinning Chief Commercial Officer of Patrick Terminals said that the project has provided a heightened level of transparency, enabling us to explore further efficiencies for our business, such as improving yard management.
Emerging Blockchain technology creates the potential for multi-beneficial productivity gains as we are able to prepare strategies to meet the trade demands of the future, Melissa Poon, General Manager for Trade and Development at the Port of Melbourne said.
In 2016, CBA and US-based bank Wells Fargo successfully completed the first global trade transaction via Blockchain between two independent banks.
Image credit: cryptocentral.io