A technological giant will launch a new blockchain network! See what its main assumptions will be based on and see which companies have joined this project!
On August 5, IBM
published a press release in which it announced about the idea of launching a new network of blocks called Trust Your Supplier (TYS)
. The main goal of the actions taken is to improve the validation and the improvement of the qualifications of suppliers. TYS is also expected to help to make the information lifecycle management better. The new blockchain
network was developed by IBM and Chainyard
. The founding members include giants such as: Nokia, Lenovo, Cisco, Schneider Electric, Vodafone, the brewing company Anheuser-Busch InBev and the pharmaceutical company GlaxoSmithKline.
Companies strive for automation!
The priority in the actions taken is to minimize the risk of fraud and errors. Current processes related to the identification of suppliers are introduced manually, which makes it difficult to verify their identity and to track documents such as ISO certificates, bank account information and insurance.
TYS aims to eliminate these, undoubtedly time-consuming, processes. While taking advantage of the blockchain technology, companies strive for automation that would be able to help minimalize the risk of fraud and error.
Blockchain is able to completely change the way in which companies implement and manage information about their suppliers [...] Trust Your Supplier will be beneficial for both parties by reducing costs and complexity and by making the entire process more efficient.
- says Renee Ure (Chief Supply Chain Officer at Lenovo).
TYS In Practice
Each supplier will have a digital identity passport placed on the blockchain. It is with its help that they will be able to provide important information to authorized network participants. According to IBM, it should accelerate the process of verifying qualifications and minimize administrative costs. This solution should ensure transparency and facilitate document management as well.
The TYS network will be launched in the upcoming months (IBM did not provide a specific date). Initially, it will cover 4,000 North American suppliers
owned by the company. IBM's supply department assumes that administrative costs can be reduced by up to 50% within their own business.
It is worth mentioning that this company has as many as 18,500 suppliers all over the world.
The new network will not be available for commercial use earlier than in the third quarter of 2019.