Transportation and Product Tracking – Implementation and Development of Transformative Blockchain System
Blockchain Solution Saves Energy Company An Estimated $3M Annually
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June 09, 2022
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Situation
Eager to innovate and be the first in its industry to leverage distributed ledger technology, a client had a lofty vision for how it could overhaul its processes to trace and track product transportation. Though the internal project lead had secured executive sponsorship for the project, the company needed additional resources and expertise to fully develop and implement such a broad solution. The company chose FTI Technology’s Blockchain & Digital Assets practice for the team’s deep knowledge of the blockchain solutions, ability to deliver and experience with the full spectrum of blockchain technologies and software.
Our Role
Given FTI Technology’s deep expertise in the blockchain space, the client engaged the Blockchain & Digital Assets team to develop the program architecture, write and deploy smart contracts for it and validate the new processes. An ongoing project, the work is enabling the company to immutably track thousands of steps and millions of transactions relating to product shipments between the U.S. and Canada.
To date, the solution has included:
- Creation of a blockchain solution architecture designed to assemble all the data about a product shipment all in one immutable repository on the blockchain.
- Advising and guidance to socialize the new system with partners and the client’s ecosystem of providers.
- Identification of smart contract needs, writing customized smart contracts and auditing smart contracts. FTI Technology maintains access to client systems for continual monitoring, tracking and fine tuning of smart contracts.
- Custom APIs to actively measure and report product details on-chain.
Our Impact
Established Trust in a Complicated Process: The immutability of a distributed ledger system provides information transparency, proof, accuracy and reduced risk for all parties involved. The client, as well as its partners and clients, are no longer mired in lengthy reporting and invoicing cycles that previously required cobbling data together from disparate databases.
Reduced Time to Payment: Proof of delivery, fulfillment of agreement terms and automation of invoicing is reducing payment cycles from the previous standard of 45-90 days to mere hours.
Significant Ancillary Savings: The combined use of monitoring tools and smart contracts to manage other steps in the process have saved the client an estimated $3M annually.
Simplified Regulatory Reporting: With records of all shipments on the blockchain, the client can provide regulators in the U.S. and Canada with ongoing validation that regulatory requirements have been met.
Extensive Logistical Improvements: The program is poised to provide significant savings and process improvements, including reduced fulfillment disputes, enhanced security and improved client relations.
Published
June 09, 2022
Key Contacts
Senior Managing Director, Global Leader of Blockchain & Digital Assets
Senior Director