A Hybrid Blockchain Ledger for Supply Chain Visibility

Abstract

Optimizing physical goods distribution by providing increased visibility to trading partners can directly impact product cost. However, current supply chain information systems often lack the ability to cost-effectively relay ground truth information in near real time to all stakeholders and most importantly to the supplier and the customer during the transport of the shipment. This paper presents a solution that addresses this gap through a peer-to-peer architecture that can support the increasing demand for visibility and timely delivery of information during the physical distribution phase of supply chain. Additional features of the proposed solution include scalability, privacy and validity of the information that is delivered to the trading partners. 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 chain for each shipment. Information in this private ledger is augmented by a public event ledger that reflects the movement of the shipment in near 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.