In today's rapidly evolving business landscape, efficient, transparent and secure supply chains have become critical for corporate success. Traditional supplier management models face numerous challenges including cumbersome qualification processes, verification difficulties, potential fraud risks and high administrative costs.
Blockchain-Powered Transformation
IBM and Chainyard have partnered to develop the Trust Your Supplier (TYS) blockchain network, designed to revolutionize supplier management processes. This initiative represents more than technological innovation—it establishes trust as the foundation of supply chain relationships, enabling businesses to build more resilient and competitive ecosystems.
Streamlining Supplier Verification
Conventional supplier management often relies on manual processes where critical documents like ISO certifications, bank account information, tax records and insurance credentials become difficult to track throughout the supplier lifecycle. TYS leverages blockchain's decentralized architecture and immutable audit trails to eliminate inefficiencies while reducing fraud risks.
The platform creates digital identity passports for suppliers, allowing secure information sharing with authorized buyers through permissioned access controls. Key advantages include:
- Simplified qualification processes through immutable distributed ledger records
- Enhanced transparency via real-time information sharing between parties
- Reduced fraud potential through blockchain's tamper-proof characteristics
- Centralized supplier performance tracking and risk assessment capabilities
- Significant cost reductions through process automation
Industry Consortium Formation
The TYS network has attracted founding participants including Anheuser-Busch InBev, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone. These industry leaders collectively address common challenges in supplier information management while demonstrating confidence in blockchain's potential for supply chain transformation.
Market Validation and Growth Projections
Gartner Inc. forecasts blockchain technology will support tracking of $2 trillion in global goods and services by 2023. TYS aligns with this trajectory, offering practical applications such as:
- End-to-end product provenance tracking
- Streamlined supply chain financing
- Automated contract execution through smart contracts
Enterprise Adoption and Benefits
Early adopters report measurable improvements in operational efficiency. Lenovo's Chief Supply Chain Officer noted blockchain's potential to fundamentally transform supplier network management, citing benefits in cost reduction, process simplification and transaction speed.
Nokia's procurement leadership highlighted the initiative's capacity to enhance supplier experiences while optimizing onboarding procedures through innovative technological solutions.
Third-Party Verification Framework
TYS incorporates validation services from established institutions including Dun & Bradstreet, Ecovadis and RapidRatings, ensuring data accuracy while strengthening network credibility. These independent verification mechanisms provide additional assurance for all participants.
Integration and Interoperability
The network facilitates connectivity with existing procurement systems, enabling seamless data exchange for purchase orders and invoices without requiring redundant data entry across multiple platforms. IBM's open-architecture approach allows integration with various business networks through standardized application programming interfaces.
Pioneering Implementation
As a founding participant, IBM will onboard approximately 4,000 North American suppliers to the network initially. Early projections indicate potential reductions of 70-80% in supplier onboarding cycles and 50% decreases in administrative costs.
Future Development Roadmap
The TYS network, hosted on IBM Cloud's Blockchain Platform, transitioned from limited availability to commercial deployment in 2019. Expansion plans include extending the solution to additional vertical markets such as pharmaceuticals and apparel, while incorporating advanced functionality including enhanced financial services integration.