TRACKING STEEL USING BLOCKCHAIN Sheryl Groeneweg, Director General Innovation, Science and Economic Development Canada MARCH 2019
OVERVIEW The Issue Digitally tracing steel by country of origin has not been done for a supply chain Tools for trade and border activity are not optimizing or Blockchain Artificial Intelligence Steel products and inputs are not comprehensively traced making it a challenge to know the quality and source of the steel Objectives Be able to say with assurance that a Monitor imports and exports Increase efficiency of steel product uses Canadian or Foreign accurately and in real-time producers steel Facilitate trade with other nations Facilitate enforcement and Be able to track foreign who are part of the tracing system compliance steel in the supply chain 2
WHAT IS BLOCKCHAIN Blockchain is a public or private digital ledger distributed across a network of computers, which doesn’t require a central authority to maintain trust Digitally tracking and authenticating Users from anywhere can add to the inputs across entire production chain process Visibility of activities and reveals Helps firms record price, date, where assets / products are at any location, quality, contracts and other point in time, who owns it and what relevant information condition or state it is in 3
HOW IT WILL WORK AI Analytics Platform International Customs Government Standardized data held in data lake or cloud Reporting, Analytics Enforcement and Enforcement External Economic Data Transaction Blockchain Processor Nodes Raw Materials Suppliers Steel Steel Steel Steel Product Product Producers Distributors Retailers Manufacturers 4 4
TRUE NORTH REBAR COMPANY – SUPPLY CHAIN USECASE Direct Reduced Iron Continuous Electric Arc Hot Briquetted Iron Ladle Furnace Casting Machine Furnace Scrap CBSA In addition, tracking details Tracking includes include relevant import price, quantity, Import & export documentation origin, contracts, documentation (e.g. import Tracing / Certification declaration form B3-3), and & transportation means of transportation Construction (e.g., port of entry) Raw materials Raw materials Rolling Mills Export In addition, export Domestic Foreign Import documentation (e.g., export declaration form B13A) and relevant import documentation is captured in the chain. Domestic Use Tracking includes price, Wholesale quantity, origin, contracts, Rebar Cooling Bed Distributors & transportation Predictive insights for: AI Platform supply, demand, inputs, X&M data, pricing data, and other economic data 5 5 Used by Government and Business – access determined by agreed upon framework
TRACING THE STEEL SUPPLY CHAIN CHALLENGE Through Innovative Solutions Canada, the Government’s innovative procurement program, industry was challenged to develop: A digital platform that would trace inputs and outputs in real time in the steel supply chain — up stream and down stream — using blockchain technology, and apply artificial intelligence enabled data analytics on this information, to better capture activities across the steel supply chain Challenge Opened on December 6, 2019 Challenge Closed as of February 15, 2019 TIMELINE Phase 1 Phase 2 Phase 3 Proof of concept Prototype development Commercialization Up to 6 months Up to 2 years 6
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