Strategic Alliance Magazine Q1 2018 - 26

How

Blockchain
Adds Security
to Supply Chains
Ron Long Offers an Explanation with Use
Cases in Pharma, Shipping, Food Security,
and the Auto Industry
By Cynthia B. Hanson

Large companies are beginning to collaborate with blockchain providers, including IBM and Maersk-the world's largest container

shipping company. Maersk uses blockchain for digitizing global trade, where each
step in the transport of the product is part of transmission data that is appended to the
next transmission data. The first block is preserved, the second block is preserved, and so forth until the goods end
up being delivered. This provides the industry with a permanent, segmented ledger that can be reviewed to determine exactly where any shipping concerns may exist.
These types of blockchain platforms also are emerging from cloud providers. For example, a blockchain
collaboration between IBM, WalMart, JD.com, and Tsinghua University was formed for food safety in China
(see "The Changing Face of Data Security in Partnering," Page 23, for more information). It works because
of cloud connectivity, says Ron Long, alliance director global industry solutions at NetApp. We are going to
see blockchain explode in the cloud among the four to six largest blockchain providers, he then predicts.
Another example is the automotive industry, which is starting to use blockchain for a complete collaborative supply chain. The benefit of blockchain in this scenario is that you have a chain for everything that goes into a car.
Having an ordering system of 10,000 generators-where everyone has to reconcile inventory, supply, etc.-impacts production, says Long. Digital transformation between the enterprises has to do with making that chain flat
and immutable. Blockchain allows transmission across the enterprise.
26
STRATEGIC ALLIANCE MAGAZINE | Q1 * 2018



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