In recent years, technologies such as Blockchain are revolutionizing our society at an exponential speed. In just 10 years, Blockchain went from being essentially what supports cryptocurrency transactions to technology with diverse applications for countless businesses. Naturally, the Supply chain and Logistics industries have developed use-cases solving intricate issues that companies have been facing.

 
Neurored is the leader in delivering real production environments of Blockchain technologies for Global Trade, leveraging the unique combination of the leading cloud platform – Force.com and the leading permitted blockchain technology – Hyperledger Fabric. Our solutions (described below) enable global trading partners to operate with a substantial level of trust, while simultaneously avoiding commercial fraud exposure that is unavoidable in equivalent paper-based processes or unsecured digitized processes.

COMMODITIES TOKENIZATION (DIGITAL ASSETS)

By taking advantage of Hyperledger Fabric, Neurored’s platform allows tokenizing commodities by leveraging the security that Blockchain provides. Indeed, trading companies can incorporate key documents to Neurored’s secure Hyperledger, saving them both a great amount of time and money by exchanging a trustworthy proof of ownership.

For instance, one application involves the tokenization of Negotiable Warehouse Receipts (WR) issued by authorized warehouses. This process, therefore, accelerates the trading of commodities stored in a warehouse, without requiring any movement of the assets themselves. Digitization of WR encourages trading partners to make secure transactions (WR endorsements) of commodities stored in warehouses and other storage facilities such as silos. Trust between trading partners is based on the digital process and the technology itself, which makes actual commercial fraud impossible. In a similar way, Bill of Ladings (BOL) issued by Break Bulk Shipping Lines can be tokenized to accelerate trade of commodities in transit on vessels.

SECURE MARKETPLACES

Neurored also develops custom marketplaces for its customers in which sellers and buyers can trade commodities through the exchange of these tokens. Our Blockchain ledger of published prices (sale and purchase prices), availabilities, quality parameters, schedules, and orders, encourages trading partners of commodities marketplaces to trade in a safer way.

In addition, our marketplaces seamlessly enable demand and supply of products to meet by agreeing on terms such as price, availability, and quality. By requesting the contribution of a trustworthy third party (e.g. inspection service, warehouse management service etc.) to certify the agreed-upon conditions, the exchange of goods can be carried out in a reliable and unbiased manner.

SECURE FACTORING

Neurored has also built a Blockchain ledger of trade documents (Order, Invoice, BOL…) and related approval processes which enables traders to provide financial institutions more trust over their commercial operations in order to obtain better discount rates for their factoring operations.

At Neurored we have an indefatigable desire to innovate and bring organizations involved in Global Trade the tools allowing them to do business in a highly cost-efficient and sustainable way, as well as gain a competitive advantage by implementing state of the art technologies. Blending blockchain into our cloud platform, thereby enabling easy navigation between the physical and digital dimensions of a business, is just one of the innovations we have conceived.

Get a live demo by contacting us here.

 

 
 

I recently enjoyed the privileged experience of a personal tour of the Port of Philadelphia in Pennsylvania, whose Master Plan aims to, “ enhance the port as an economic engine for job growth of family-sustaining jobs that reflect the composition of our community.”

To bring this into focus, the port will double its capacity to 900,000 TEUs, construct 100,000 sq ft of warehousing to support a 21% increase in breakbulk capacity, and double its auto transport capacity.

Much of these goals have risen from the recent widening of the Panama Canal, which can now accommodate ships carrying 13,000 TEU containers.  That’s nearly triple the number of containers on a single voyage… and this is merely one economic region of global trade in the world!

These increases in global trade are however placing the industry’s participants under increasingly greater pressure.  Pressure to deliver, on time, in budget, claim free.

Documentation management which has historically operated in a peer-to-peer manner, has been placed under greater stresses over the years as the number of participants in a typical international shipment transaction has grown.

Manufacturers, wholesale traders, freight forwarders, lenders, insurers, inspectors, customs officers…all parties to each transaction, must have visibility into the history of the documents that show proof of delivery for each respective step in the process.

Our team at Neurored consistently heard ideas like this from our customers, and so we built a fully multi-modal, global track and trace Control Tower, the centerpiece of our cloud-based Global Supply Chain & Transportation Management solution.

What began as single sets of documents, gradually became replicated and shipped to each peer via parcel shipping services, as each participant expended more and more labor costs attempting to organize their very own version of “the truth” for any given shipment.

Transportation Management Systems historically operated within a given mode of transportation.  Supply Chain Management Systems tended to focus on the costs and sourcing of physical goods, challenged by the notion of delivering a fully landed price.

Meanwhile, the logistics industry evolved to attack this problem, developing Third Party Logistics into its very own niche.  These 3PLs became the concierge service of international trade…shipment status was now a single call away, regardless of the mode of transport, because you now had a single contact.

But here we are in 2018, a time when our homes tell us when a visitor arrives before they even land on our doorstep, our cars can tell us exactly what type of service they’re about to need, and parcel package delivery is gradually becoming crowd-sourced.

For all consumer deliveries, we can open up a phone app or web browser, and have a very clear sense of when that delivery will arrive.

With Neurored’s Control Tower, our customers see all of their shipments, everywhere in the world, with status updates occurring in a matter of minutes throughout each day.

Therefore it is absolutely no surprise to anyone, that buyers and sellers of global trade, are ready to demand, the same level of visibility and transparency.

Our team at Neurored consistently heard ideas like this from our customers, and so we built a fully multi-modal, global track and trace Control Tower, the centerpiece of our cloud-based Global Supply Chain & Transportation Management solution.

Just a few months ago, Hurricane Harvey was bearing down on the city of Houston, Tx.  One of our customers operates two terminals there, importing cement.

Leveraging Neurored’s Control Tower, our customer was able to quickly identify assets at sea, engage in digital communications to divert them out of harm’s way, and commence the safe shutdown of these facilities until the storm had passed.

Thanks to Neurored’s Control Tower, our customer was able to proactively protect their assets both at sea and on land, and with a little help from above, the terminals were back up and operational within 24 hours!

With Neurored’s Control Tower, our customers see all of their shipments, everywhere in the world, with status updates occurring in a matter of minutes throughout each day.

Our most innovative global trade clients have engaged in a very powerful new capability, a FinTech tool which exposes the chain of custody we already provided them, now made available to all participants of each shipment through a secure, transparent, private Blockchain solution we’ve developed on IBM’s Hyperledger architecture.

And we built our app completely native on the Force.com platform by Salesforce.com, ensuring our clients gain the benefits of continuous innovation beyond our own.

As our customer base began to encompass more types of global trade participants, we began to see even greater opportunities to create value.  These opportunities form the basis of Digital Collaboration.

Our freight forwarding customers are sourcing quote requests from shippers, while simultaneously managing their customer, asset owner, and lead relationships, completely online in secure communities.

Manufacturing and wholesale trading customers are planning shipments, and comparing quotes to freight marketplaces like Freightos, with which we have seamlessly integrated.

But transaction and relationship management is really just the foundation for the biggest disruption we are now delivering in international trade.

Our most innovative global trade clients have engaged in a very powerful new capability, a FinTech tool which exposes the chain of custody we already provided them, now made available to all participants of each shipment through a secure, transparent, private Blockchain solution we’ve developed on IBM’s Hyperledger architecture.

And we built our app completely native on the Force.com platform by Salesforce.com, ensuring our clients gain the benefits of continuous innovation beyond our own.

Now, shippers are achieving far more competitive financing, because the manual work of peer-to-peer workflows have been eliminated.

Freight forwarders are even empowered to bring the full suite of these features to their customers, recognizing that their role is shifting from merely broker to technology solutions provider.

And Digital Collaboration is Accelerating the future of global logistics. [/av_textblock]

Innovative Freight Forwarders are now providing comprehensive trade finance solutions to their customers, by taking advantage of the Neurored Trade Finance BlockChain.

Importers and Exporters now have an alternate mechanism to finance their trading operations. Rather than time-consuming, traditional trade financing provided by banks, trade is now being financed by Freight Forwarders, enabled by this innovative Neurored technology.

Freight Forwarder customers will get Credit Lines to finance their trading activity and automate payments directly from their newly established Credit Line.

The Neurored Trade Finance BlockChain solution takes simultaneous advantage of well-aligned conjunction of logistics and technology services, which we describe below:

  • Customers leveraging Freight Forwarder logistics services can negotiate more favorable incoterms for their counterparties. Importers will be able to buy FOB from their suppliers, which will clearly open the scope of suppliers who agree with these terms. Exporters will be able to sell CIF to their customers, which will also open the scope of buyers who agree with these terms.
  • Leveraging Neurored integration with the Ebury Fintech Platform for Import-Export finance and B2B Cross Border Payments, Freight Forwarder customers will get Credit Lines to finance their trading activity and automate payments directly from their newly established Credit Line.
  • Leveraging the combination of the Neurored Supply Chain Network and BlockChain technologies unifies all supply chain participants (Supplier, Freight Forwarder, Buyer, Inspection Entity, etc), enabling each to upload their respectively required documents into the BlockChain, ensuring all commercial terms have been addressed.

This transparency leads to Suppliers being paid directly from Ebury Credit Lines when commercial terms have been met and registered in the Blockchain.

The Neurored Trade Finance Solution has many advantages over the traditional Letter of Credit, which we explain below:

  • A Letter of Credit creates trust through the banks of seller/buyer counterparties. The banks are the participants who review all of the documentation to make sure commercial terms have already been addressed before processing any payment. This is heavily intensive, manual paperwork and consequently has a high cost.
  • The Neurored Trade Finance Solution creates trust thanks to a combination of technologies provided by Neurored and greater logistics capacity provided by Freight Forwarders. The final result is a process with less cost, where documents are uploaded and reviewed by all participants of the supply chain, keeping track on the BlockChain of all the documents and approval process required before doing a payment. Simultaneously and very important to note, the process also has the added advantage of achieving lower freight costs when counterparts charge you for them.

Contact us for further discussion.

Blockchain paradigm is changing the way many goods are transacted between business and in the markets.

This post brings you an executive comparative of the differences in key aspects between the traditional supply chain and a Blockchain-based supply chain, echoing an approach from the insightful article about Blockchain and SCM recently published by the expert in SCM transformation Mr. Roy Sanjeev, Global Transformation Leader in Chevron | E&Y | ExxonMobil.

 Traditional Supply ChainSupply Blockchain
LedgersProprietary of every link. Available only for the owner.Shared between the links. Available to any link with credentials.
Information FlowIntermediated. Every link of the chain is a bottleneck for the information flow.Disintermediated. Information flows openly in a permissioned manner.
Assumed RiskIncreases in every link.Is reduced as more links adhere to the ecosystem.
AgilityEvery link increases trust erosion and technology integration costs.As links go Blockchain the trust increases and technology integration costs decreases.
Relationships between stakeholdersBilateral and chained.All connected.
NotarizationInformation of transactions needs to be verified as it flows from link to link, through the use of test certificates, bills of lading, letters of credit etc.Information of transactions across the ecosystem resides inside the Blockchain system as every transaction happens on a distributed ledger perfectly notarized.
Title transferEasy for any property whose ownership is controlled by the Blockchain.
TraceAuthenticity of transactions is compromised by the lack of open and trustworthy information provided by links.Transactions can be traced with authenticity throughout all the stakeholders.
IrrevocabilityTransactions may be contractually manipulated or distorted to suit one party, increasing the risk and untrust.Transaction histories are shared with the whole ecosystem and are always available, eliminating the chances of being hacked also eliminates the chances of being manipulated or distorted.
Smart-contractContracts agreed don't mean be complied with, so the focus is not only in the partnership but on compliance and the need to “check the checkers”.Smart Contracts can not be bypassed so there is no need to focus on compliance.
TruthMultiple sources of truth not always sync.
Single source of truth available to all actors in the ecosystem.
Audit TrailPartially and atomically recorder by every link related to its transactions with other links.Recording and bringing information from each and every transaction to all actors in the ecosystem.

“Leading experts are predicting the Blockchain technology adoption to be in the following chases (1) early adoption during 2016-2017 (2) Growth during 2018-2024 and (3) Maturity from 2025 and beyond. It is important for leading supply chain strategists to form a POV on the applicability of the Blockchain technology to their own supply chain from a strategy perspective”.  Roy Sanjeev.

Source: Referred article