- Walmart is a well-known organization known to all of us, and it has always been known as a leader in supply chain management.
- Walmart Canada uses blockchain for its third-party freight carriers to handle invoices and other payments.
The transportation industry has faced the same issues and problems for decades. Because of this, there has been a very long delay in payments and disparities in the freight carriers’ invoices. But now Walmart Canada has started using blockchain and is known as a leader in supply chain management. The only reason to start accepting blockchain as a payment is nothing, but it can automatically process some invoices along with payments for its 70 third-party freight carriers.
Why Does Walmart Need Blockchain?
To supply over 500,000 shipments, Walmart Canada eventually uses its trucks and some third-party transport. In every load, there are some stop locations, and the total number of gallons of fuel the carrier used is calculated along with some of the latest temperature updates and many more.
They are the ones who started to use blockchain to solve their logistics nightmare by creating a blockchain network to automate the process, bringing a shared system of trusted information for Walmart and its employees, and solving the problem of economic inequality.
To build its blockchain network, Walmart Canada reached out to DLT Labs, a leader in developing and implementing business solutions using distributed ledger technology. Bison Transport, a subsidiary of Walmart Canada, was also affected.
Some Benefits of Blockchain to Walmart Canada
The decentralized database ensures secure data exchange and is accessible to various parties. Cryptocurrencies such as Bitcoin and Ethereum take advantage of this technology, allowing people to trade without any restrictions orinterference, regardless of their participation in the market.
Chain management, in contrast, focuses on using the blockchain to enable specific individuals to be identified to manage transactions between each other. Instead of coins, supply chain blockchains “mint” transaction information, creating unique and easily identifiable tokens for orders, inventory, and more.
Each participant in the blockchain has its own digital platform, which is used to verify the movement of coins on the chain. Also, everyone gets their own copy of the chain and has access to a tamper-proof audit trail.
Compared to public blockchains, some private networks always require one party to be authorized to participate, and since access is limited to authorized members and is often required for transactions, only two parties working directly with each other see the specific information they are exchanging, therefore meeting industrial needs. Walmart, for instance, opted for a private network built on the open platform Hyperledger Fabric.
At the same time, some legacy systems can be old and rigid, but they almost have unparalleled power, and the information they contain is important. The success of Walmart Canada’s system demonstrates the potential of blockchain, which creates significant operational and financial benefits and improves customer relationships.