Toyota to Bring Forward to May 2020 Plan to Make All Vehicle Models Available Through All Sales Outlets in Japan

Jun 24, 2019 Toyota City, Japan, June 24, 2019 (JCN Newswire via COMTEX) — Toyota Motor Corporation announces today that it has decided to bring forward to May 2020 its plan to make, in principle, all of its Japanese-market vehicle models available through all sales outlets in Japan. Toyota’s decision to bring forward the plan was based on its conclusion that the company must further accelerate the full utilization of its 6,000 outlets in Japan and that it must also accelerate the innovation of its sales network, due to accelerating changes in the marketplace and in the current times brought on by the speed of today’s innovation and the advance of CASE (connected, autonomous, shared, electric).

By making vehicles and all possible services related to mobility available to customers through any outlet, Toyota aims to be able to provide at an early stage services that better approach the needs of its customers. A concrete plan is to be determined through further consultation with each of Toyota’s Japanese sales companies.

Toyota had originally announced in November 2018 that it intended to make, in principle, all models available through all outlets in Japan over a transition period from 2022 to 2025, as part of an effort to build a more-regionally rooted Japanese sales network capable of providing new mobility services to survive this once-in-a-century transformational period.

Also, from the perspective of further increasing convenience for its customers, Toyota intends to more greatly advance the expansion of car-sharing services beyond involvement of Toyota vehicle sales outlets to include Toyota Rent-a-Lease outlets, resulting in car-sharing services that transcend conventional divides.

Rather than carry out blanket implementation nationwide, Toyota will promote the building of optimal networks for each region of Japan.

Through such initiatives, to make the coming future society of mobility more abundant and enjoyable, Toyota will further accelerate its transition into a mobility company.

About Toyota Motor Corporation

Toyota Motor Corporation (TMC) is the global mobility company that introduced the Prius hybrid-electric car in 1997 and the first mass-produced fuel cell sedan, Mirai, in 2014. Headquartered in Toyota City, Japan, Toyota has been making cars since 1937. Today, Toyota proudly employs 370,000 employees in communities around the world. Together, they build around 10 million vehicles per year in 29 countries, from mainstream cars and premium vehicles to mini-vehicles and commercial trucks, and sell them in more than 170 countries under the brands Toyota, Lexus, Daihatsu and Hino. For more information, please visit www.toyota-global.com.

Source: Toyota Motor Corporation

24 June 2019 | Market Watch

https://www.marketwatch.com/press-release/toyota-to-bring-forward-to-may-2020-plan-to-make-all-vehicle-models-available-through-all-sales-outlets-in-japan-2019-06-24

5G ‘promises to transform’ logistics industry: report

Dive Brief:

  • The 5G mobile broadband standard “promises to transform” the logistics industry by allowing more data to be transferred more quickly over networks, according to the 2019 State of Logistics report from the Council of Supply Chain Management Professionals (CSCMP), A.T. Kearney and Penske.
  • 5G will be indispensable for helping to propel autonomous vehicles, large-scale Internet of Things (IoT) and drones, the report said. Other logistics-specific applications like fleet management and predictive maintenance will benefit from this standard and potentially drive greater efficiencies in the supply chain.
  • “With 5G, each parcel can have its own sensor tracking detailed data, such as humidity and temperature; each robot can employ dozens of sensors with continuous uplink to the cloud,” the report reads. “Thus, companies will be better able to implement infrastructure monitoring, process automation, smart metering, and real-time fleet management.”

Dive Insight:

In the near future, which the report defines as within the next three years, the applications for 5G will mostly be in areas like IoT and augmented reality (AR). This would include the ability to conduct remote quality inspections and diagnostics, handle more aspects of planning and data transfer in a cloud environment, along with real-time location and video access for supply chain partners, the report said.

In the long term, utilization gets into more advanced applications like unassisted robotic distribution centers and last-mile drone delivery.

“In the long term, 5G could play a fundamental role in changes that transform our industry and many others,” Rob Siegers, the president of global technology at DHL, said in a blog post earlier this year.

Large asset-based carriers like Maersk or Ryder will likely see the most immediate benefit of 5G as it will allow them to track assets in real time and “make decisions informed by detailed data not accessible before,” the report said. Other supply chain players like freight forwarders might have fewer use cases for 5G technology, but will likely still benefit from it as more uses emerge.

5G will allow for “seamless execution and unassisted operations will transform the business economics fundamentally in the industry in ways that will generate higher margins and better service,” Michael Zimmerman, a partner at A.T. Kearney and an author of the report, said at release of the report earlier this week.

21 June 2019 | Matt Leonard | Supply Chain Dive

https://www.supplychaindive.com/news/5g-promises-transform-logistics-industry-report/557360/

Mexico becomes 1st country to ratify USMCA

Dive Brief:

  • Mexico became the first country to ratify the United States, Mexico and Canada Agreement (USMCA) Wednesday when the Mexican Senate voted overwhelmingly to approve the deal.
  • Canadian Prime Minister Justin Trudeau is in Washington today where he will meet with President Donald Trump and lobby for the deal with members of Congress.
  • With several major hurdles cleared in recent weeks, the path forward for the USMCA is somewhat more clear, though it is by no means a done deal.

Dive Insight:

In order for the deal to go into effect, all three countries’ legislatures must vote to ratify it. Last month, the U.S. lifted steel tariffs on both of its neighbors and Mexico passed a consequential labor law — both considered essential to the deal’s survival. But after recent tensions between the U.S. and Mexico over immigration at the U.S. southern border and tariffs on Mexican imports Trump threatened as a result, the future of the deal was uncertain.

Despite Mexico’s ratification and the tariff threats and machinations of the past month, support and skepticism for the deal remain largely unchanged in the U.S. Congress.

Nancy Pelosi is still waiting to see how Mexico implements its new labor legislation, the passage of which was a condition of Democratic support, reported Politico.

Some Democrats have also called for revisions to the deal. The Trump administration has strongly opposed amending the agreement in the past, but U.S. Trade Representative Robert Lighthizer went to Capitol Hill Wednesday to tell the House Ways and Means Committee he is open to hearing their concerns and possibly making accommodations in the text.

Congress has 18 working days left when both houses are in session before summer recess, and Canada is reportedly looking to pass the deal somewhat in tandem with the U.S. in what Canadian Foreign Minister Chrystia Freeland called a “goldilocks approach” — not too fast, not too slow.

20 June 2019 | Emma Cosgrove | Supply Chain Dive

https://www.supplychaindive.com/news/usmca-mexico-ratifies/557287/

Trump, Xi to resume US-China trade talks at upcoming G20 summit

Dive Brief:

  • President Donald Trump announced via tweet June 18 he will meet with Chinese President Xi Jinping for “extended” trade talks at the upcoming G20 summit in Japan June 28 and 29. Trump previously said if Xi did not attend the G20, the U.S. would immediately levy tariffs on an additional $300 billion of Chinese goods, covering nearly all imports from the country.
  • “Leader level engagement at last year’s G20 was critical to jumpstarting the talks,” Clete Willems, a former trade negotiator for the Trump campaign, told Reuters, referring to the 2018 G20 meeting between Xi and Trump in Argentina. “It will be essential to managing the current political dynamic and getting the talks back on track once again.”
  • Meanwhile, in Washington D.C., more than 300 witnesses who represent major businesses and supply chain and manufacturing associations are testifying in U.S. Trade Representative (USTR) hearings to express their opposition to the proposed fourth tranche of tariffs. The hearings opened on June 17 and will close on June 25 before kicking off a week-long rebuttal period. Whether the tariffs are implemented will likely be subject to the results of the G20 negotiations.

Dive Insight:

While neither country’s delegation has released formal commitments, businesses on both sides of the Pacific hope for a resolution, or at least a stabilization, of the unpredictable trade war. However, as the previous year’s negotiations have shown, talks alone are not a guarantee. The last G20 meeting produced a 90-day truce, but the list three and list four tariff announcements came not long after the end of the truce.

The uncertainty has led to inventory stockpiling as companies try to rush goods to the U.S. ahead of the impending tariffs. While this has caused record-breaking traffic at some ports, and even capacity problems, the trend is beginning to slow down as demand has begun to soften and firms await the results of the trade talks.

Likewise, the recent proposition and scrapping of tariffs on Mexican imports has companies uncertain about where to go next in terms of materials sourcing and manufacturing.

“I started looking in Mexico, but I got scared off,” Mark Schneider, CEO of Kenneth Cole Productions, a clothing company, testified in a USTR hearing. “Some sort of stability with this type of discussion would be really helpful. There’s no preparation for anything.”

Companies that rely on China for electronics and machine parts also want a truce. David Baer, general counsel for domestic TV manufacturer Element Electronics, stated, “we will be forced to shut down the South Carolina factory and move our production offshore,” as the cost of components will be too high to sustain its U.S. operations.

Apparel is another vulnerable category. In an interview with NPR, American Apparel & Footwear Association CEO Rick Helfenbein said 42% of apparel and 72% of footwear into the U.S. comes from China. “We’ve been threatened with this for some time … And we don’t exactly have a place to go, which means, quite frankly, that prices will go up, that sales will go down,” Helfenbein said.

19 June 2019 | Morgan Forde | Supply Chain Dive

https://www.supplychaindive.com/news/trump-xi-jingping-resume-trade-talks-g20-summit/557175/

Trucks moved 63 percent of trans-border freight in March, up nearly $1 billion, according to data

Trans-border freight totaled $107.2 billion in March, with trucks moving 63 percent of all freight by value with United States trading partners Canada and Mexico, according to data released by the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

Trucks carried $67.4 billion of United States freight in March 2019, compared to $66.5 billion during the same time last year, and continued to be the most utilized mode for moving goods to and from both Canada and Mexico. Trains, airplanes, ships and pipelines accounted for the rest of North American Free Trade Agreement (NAFTA) freight movement.

The United States-Mexico-Canada Agreement (USMCA) represents President Donald Trump’s effort to modernize NAFTA, which has been in place since 1994. The USMCA agreement was signed in November 2018, but still needs to be ratified by the legislatures of each country.

With the threat of President Trump’s 5 percent tariffs no longer hanging over his country, Mexico’s president said he expects to ratify the USMCA trade agreement by the end of the week. Mexican President Andrés Manuel López Obrador said Mexico’s Senate would hold a special session this week and the first item on the agenda would be ratification of the USMCA.

The USMCA would update country of origin rules, labor provisions, U.S. farmers receiving access to Canadian dairy markets and intellectual property and digital trade laws.

For now, trans-border freight between Mexico and the U.S. rose by almost 3 percent in March, with total freight valued at $36.4 billion. The vast majority of freight moved by trucks were computers and computer parts ($13.7 billion), motor vehicles and auto parts ($10.7 billion) and electrical machinery ($10.1 billion).

Canada truck freight decreased by 0.4 percent in March to $31 billion. Trucks still accounted for 57.2 percent of all trans-border freight between the U.S. and Canada.

The three busiest truck ports for trans-border freight were Laredo ($15.8 billion), Detroit ($9.6 billion) and El Paso ($5.1 billion), accounting for 45.3 percent of total trans-border truck freight.

Rail was the second most used mode to transport freight, accounting for $16.2 billion (15.1 percent of all transborder freight) in March 2019.

The value of trans-border goods traveling by rail between the U.S. and Mexico was $7.6 billion, up 9 percent compared to the same period the previous year, while it was down 5.7 percent between the U.S. and Canada ($8.7 billion).

Laredo was the busiest trans-border truck freight gateway in March; the city was also the busiest rail border port for moving goods. Laredo accounted for $4 billion of rail freight in March 2019, while Port Huron, Michigan, came in second at $2.3 billion and Detroit was third with $2.2 billion.

Laredo, Port Huron and Detroit rail ports accounted for almost 53 percent of all trans-border rail freight in March. The top three rail commodities (63.6 percent of total trans-border rail freight) were motor vehicles and parts ($8.4 billion), fuels ($1.1 billion) and plastics ($0.9 billion).

The U.S. trans-border freight total of $107.23 billion in March was up more than $13 billion from the previous month and an increase of more than $1 billion from March 2018. It marked the first time in 2019 that trans-border freight totaled more than $100 billion.

17 June 2019 | Noi Mahoney | Freight Waves

https://www.freightwaves.com/news/trucks-moved-63-percent-of-trans-border-freight-in-march-according-to-federal-data

US denies tariff exemptions for Tesla, GM, Uber

Dive Brief:

  • The U.S. Trade Representative (USTR) has denied tariff exemptions from Tesla, GM, and Uber, according to Reuters which cited government documents for the finding. The USTR allows for tariff exemptions if companies can show products can’t be acquired from another source.
  • Telsa applied for exemptions on key technological components for its electric vehicles including it’s “brain” — the car’s main autopilot computer. GM filed for over 50 exemptions ranging from components for push-button ignition to battery cables. Uber sought exemptions for its electric scooter fleets. In total, Reuters reports that the USTR has received over 13,000 exemption requests since the trade war began and has rejected 7,000 of them.
  • In the case of Tesla, GM and Uber’s denials, the USTR claimed that the technologies they wished to exempt from tariffs were material to Beijing’s “Made in China 2025” initiative or other critical industrial programs. “Made in China 2025” refers to a recently launched Chinese government initiative aimed at leveraging government subsidies and nationalized manufacturing capabilities to increase its dominance in high-tech manufacturing across a range of industries.

Dive Insight:

Tesla, GM and Uber are not the only companies in the industry denied exemptions. In May, Fiat Chrysler, Nissan and Volvo (among other major auto brands) applied for tariff exemptions citing profitability concerns and were rejected on similar grounds.

Now fully exposed to the 25% tariffs on affected components, automakers are preparing for lost profits and consumer price hikes. In its USTR filing, Fiat Chrysler said exposure to the 25% duties would force it to “reduce its margins, pass the additional cost onto consumers or some combination of the two.”

Likewise, Tesla stated in its application, “choosing any other supplier [for its autopilot computer] would have delayed the [Model 3] program by 18 months with clean room setup, line validation and staff training.”

Despite the impact on automakers in the U.S., the Trump Administration maintains the tariffs are necessary to preserve American intellectual property from “persistent theft” by the Chinese.

Drewry report released before the rate on the third list of tariffs increased last month, stated the 25% figure would reduce vehicle imports from both Asia and Europe by 11% in 2020.

14 June 2019 | Morgan Forde | Supply Chain Dive

https://www.supplychaindive.com/news/us-denies-tariff-exemptions-for-tesla-gm-uber/556904/

US export losses from trade war pegged at $40B

Dive Brief:

  • The trade war between China and the U.S. could result in an annual loss of $40 billion in U.S. exports, Industry Week reported citing research by the Institute of International Finance.
  • This impact can be seen at Asian ports where empty containers accounted for more than a quarter of all TEU traffic, according to The Loadstar.
  • None of this is great news for ocean carriers that make their money by hauling freight, not empty boxes, and could lead to higher annual contracts in the future, according to The LoadStar.

Dive Insight:

Perhaps the fundamentals of launching a trade war with China have merit. The theft and mistreatment of intellectual property, a potential monopoly around 5G cellular technology and market damaging dumping of some commodity products reflect an economic approach that has impacted the U.S. economy. The use of tariffs as an economic disincentive to penalize China for these activities is certainly one way to get their attention and to seek a negotiated solution.

Successful supply chains depend on long term stability. The politicization and mercurial approach to the application of tariffs on China, as well as the threats of tariffs on other countries, have created economic uncertainty. Public negotiations, often driven by social media, are not helpful at best and confusing and counterproductive at worst. Successful planning is proactive, not reactive.

The impacts of the tariffs can be felt throughout the supply chain. Tariff related cost increases are already being felt by many organizations and they are being passed on to customers and end users. Supply chains have been disrupted, and modified, because of current and threatened tariffs. Inventory has been purchased to hedge against increased costs, impacting operations and planning throughout the supply chain. Exports of certain agricultural products are down, forcing the U.S. government to provide subsidies to the growers most impacted.

The imbalance of shipping containers is but a symptom of misaligned supply and demand caused by the ongoing trade skirmishes. But it is also an indicator of real impact on the supply chain. No matter the political positioning, the tariffs have caused uncertainty in a process that thrives on consistency and dependability. While the trade issues with China now hopefully look like they may be resolved in the short term, long term ramifications in the supply chain are just coming into view.

04 March 2019 | Rich Weissman | Supply Chain Dive

https://www.supplychaindive.com/news/supply-chain-begins-to-feel-effect-of-tariffs/549632/

Trends on the Horizon in 2019

The four trends that will have the greatest impact on operations in North America in the coming year, according to DHL Supply Chain:

1. Warehouse robotics come of age. Robotics are already proving their value in select warehouse applications, but the technology is expected to reach a tipping point in 2019. Expect the technology to have an impact that extends beyond e-commerce fulfillment.

The ability of the current generation of robots to work alongside humans while performing low-value tasks that increase overall warehouse productivity applies across a range of industries and warehouse tasks.

2. Increased uncertainty drives greater agility. In today’s global and interconnected supply chains, new tariffs, renegotiated trade agreements and regional climate events can have a ripple effect that paralyzes an entire supply chain. This is making proactive supply chain planning more important than ever. Designing supply chains with the ability to flex to circumvent natural disasters or quickly re-configure to accommodate shifts in costs or material availability has become critical to maintaining high service levels.

3. Talent gets the attention it deserves. While the talent gap remains a significant challenge, solutions are starting to emerge, including using robotics to increase productivity. DHL promotes career opportunities available in supply chain management while helping prepare students to enter the industry.

4. Digitalization closes the transportation service gap and helps shippers think beyond today’s shipment. Transportation will benefit from emerging digital solutions that will enable the industry to make better use of available resources and close the service gap.

31 January 2019 | Felecia Stratton | Inbound Logistics

https://www.inboundlogistics.com/cms/article/trends-on-the-horizon-in-2019/?news=1

Mercedes-Benz to boost visibility via blockchain

Mercedes-Benz Cars has announced a partnership with contract management software provider Icertis to improve transparency in its supply chain and procurement via the use of blockchain technology.

Blockchain technology, which creates a distributed electronic ledger, allows parties involved in the supply chain to view, share and update critical documents such as bills of lading, invoices, terms and agreements relating to a particular shipment or transaction.

While unwilling to provide specific details, a spokesperson for the carmaker said it had worked with Icertis to test the system from the supply of raw materials through their refinement and use in components up the chain of suppliers to eventual factory delivery.

Mercedes-Benz Cars said the use of blockchain would give it greater ability to see whether its sub-suppliers were meeting contractual obligations on such things as working conditions, human rights, environmental protection, safety, business ethics and compliance within the supply chain. Additionally, it said, it would improve the traceability of components and raw materials.

The carmaker and its software partner are now assessing how many suppliers will take part in the next stage of the project.

“The transmission of contracts to each member of the supply chain is the prerequisite of cooperation with our suppliers, especially in terms of sustainability and ethical conduct,” said Sabine Angermann, head of purchasing and supplier quality for raw materials and strategy at Mercedes-Benz Cars. “The blockchain prototype opens up completely new ways to make purchasing processes simpler and safer.”

As a form of distributed ledger, blockchain requires each supplier working with Mercedes-Benz to record the details of its contract, including its sustainability requirements. That disclosure and confirmation of requirements creates a ‘transaction book’ that can be retraced by all participants in the supply chain, ensuring that suppliers meet the carmaker’s stringent requirements. Confidential information is not disclosed and the technology limits access to data relevant to a particular shipment or transaction.

“Blockchain technology has the potential to fundamentally revolutionise our procurement processes and could affect nearly the entire value chain,” said Wilko Stark, member of the divisional board of management for procurement and supplier quality at the OEM. “Global supply chains are becoming increasingly complex. With our blockchain prototype, we are in the first step of testing one of diverse possible applications, with the aim of increasing transparency beyond our direct suppliers.”

Mercedes-Benz said it would work in full cooperation with its suppliers to ensure a high enough standard of data was put in to make the system as effective as possible.

The system being used is built on the Icertis Blockchain Framework and uses ‘smart contracts’ to build an immutable public ledger that Icertis said would help to ensure suppliers adhered to sourcing and contracting practices specified by Mercedes-Benz.

In addition, Icertis said participants in the system would have the option to use its AI capabilities to automatically verify the contractual obligations around agreed terms, such as sustainability. The technology can also be used to enforce compliance requirements like data privacy (including the GDPR), information security, the International Trade in Arms Regulation (ITAR), the Foreign Corrupt Practices Act (FCPA) and other regulations.

“The challenge of managing a global supply chain have never been higher,” said Monish Darda, chief technology officer and co-founder at Icertis. “We are delighted to partner with Mercedes-Benz Cars, one of the most innovative companies in the world, to apply our cutting edge blockchain on the ICM platform to address the sustainable sourcing challenge.”

Mercedes-Benz Cars’ parent company, Daimler, has been applying blockchain technology in other areas. In 2017, it joined Hyperledger, a Linux Foundation project aimed at the development of technologies and applications using blockchain. In the same year, it used blockchain for financial transactions with Landesbank Baden-Württemberg (LBBW) for the first time.

26 February 2019 | Marcus Williams | Automotive Logistics

https://automotivelogistics.media/news/mercedes-benz-seeks-raise-visibility-blockchain

Why humans are blockchain’s weakest link

The hype around blockchain is marred by one lingering question: What if the data is wrong?

Dating back to the first punch-card programmers, data systems have faced the “Garbage In, Garbage Out” problem. The system’s output is only as reliable as the data that go into it.

Blockchains or distributed ledgers are supposed to help overcome this problem by creating an immutable record of transactions that can be changed only with the consensus of the other parties in the network.

But how can you ensure the data attached to a package of romaine lettuce in the grocery store is accurate and will allow the product to be traced back to the actual field where it was picked?

“A blockchain record is only as useful and trustworthy as the data that is entered,” Matt Higginson, a partner with McKinsey & Company, told Supply Chain Dive. “The consensus algorithm governing the writing of new data verifies who provided the data, but not the ‘what’ [the data itself].”

Right now, the bar for blockchain to improve data accuracy is fairly low. Industry experts estimated 35% to 40% of all data in supply chain systems are faulty, Higginson noted. “While blockchain may not be fool-proof, it could potentially deliver a step change in accuracy due to the clear accountability and enhanced data security,” he said.

Physical goods require an element of trust

For cryptocurrencies, a blockchain is designed to be “trustless” so the members of the network don’t have to be known to each other. The system itself makes it impossible to cheat.

Adapting blockchain to track physical objects requires knowing who is adding information to the chain.

“There will still be a large element of trust associated with data quality and a potential need for third party authentication, audit services, and trust in a central party,” Higginson said.

The process of converting physical assets such as diamonds or aircraft engine components into digital assets for entry into a blockchain is called dematerialization. For manufactured parts it’s possible to stamp a cryptographic key into the component and submit that key to the blockchain to begin the tracking process.

“For perishable goods like tomatoes, that is considerably more difficult and so the danger of substitution looms large,” Higginson said.

IBM’s food blockchain is ready for prime time

Tracking the entire supply chain of the 45,000 items found in the average supermarket can be an expensive, daunting task. But the costs of not being able to pinpoint the origin of tainted food could be devastating. In the wake of the romaine lettuce recall, the price of iceberg lettuce jumped 168%. A 2009 recall of peanut butter due to salmonella cost more than $1 billion. Overall, foodborne illnesses cost the U.S. up to $93.2 billion annually, according to Yahoo Finance.

IBM’s Food Trust system includes applications that track how much time it takes for produce to move from fields to store shelves and provide the ability to trace products in seconds to mitigate cross-contamination and the spread of food-borne illness.

The network is now generally available after an 18-month pilot program with Walmart, Dole, Tyson Foods, Unilever, Kroger and other major food companies.

To establish a baseline for the pilot program, Walmart used traditional supply chain records to trace the origin of a package of sliced mangoes from a farm in South American in six days, 18 hours and 26 minutes. With the blockchain platform, Walmart was able to locate the originating farm in only a few seconds.

Infrastructure grows to support data entry

The spread of mobile devices to farms, factory floors and mines will help ensure products are entered into the blockchain as close to the point of production as possible. In many developing countries, mobile phones are a broadly accepted medium for doing business, including payments.

“It is not a stretch to expect such growers and producers to use their mobile devices to enter origination information, particularly if they can earn financial rewards for doing so,” Higginson said.

IBM worked with suppliers, farmers, and any other participants to help enter data on their products. Major players including Walmart and Carrefour are developing systems to motivate their suppliers to join the growing ecosystem. For instance, it will be easier for producers to have their products certified as fair trade or organic and to be a supplier to a grocer that has adopted the blockchain.

“We’re working with services and technology providers like Centricity – a grower-owned company – to make it easy to collect, protect and share agronomic and compliance data between systems and trading partners, regardless of formats,” Gopie said.

Humans: blockchain’s weakest link

Right now, the only ways to eliminate the threat of substitution or fraudulent entry are removing the human element from entering data and creating penalties for entering inaccurate data.

Automated sensors attached to or integrated into the goods being tracked could reduce or eliminate the chance of human error or fraud. Parties found entering incorrect data, such as the grade of a diamond or the origin of produce, could be denied further access to the blockchain.

“If there is an error in data entry, it can be corrected with consensus from the network,” Gopie said.

The original author can correct inaccurate information, but an archive of the changes will be visible to all parties in the blockchain.

Organizations that certify supply chains for organic or non-GMO foods are looking at blockchain certification but would still rely on a human audit process to ensure that the parties involved enter supply chain data correctly and accurately, Higginson said.

At this point, universal standards for data entry, format and governance still need to be established, he said.

So-called smart contracts could be one solution. All parties to the contract could have access to review and edit data as needed to correct format errors or if the products somehow change from the previous supply chain entries.

“However, such a process does not prevent substitution nor the creation of false supply chain data knowingly entered by legitimate actors,” Higginson said.

26 February 2019 | Gary Wollenhaupt | Supply Chain Dive

https://www.supplychaindive.com/news/blokchain-technology-trust-data-integrity-supply-chain/549139/