TRACKING STEEL USING BLOCKCHAIN Sheryl Groeneweg, Director General - - PowerPoint PPT Presentation

TRACKING STEEL

USING BLOCKCHAIN

MARCH 2019

Innovation, Science and Economic Development Canada Sheryl Groeneweg, Director General

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OVERVIEW

Digitally tracing steel by country of origin has not been done for a supply chain

The Issue

Tools for trade and border activity are not optimizing

Steel products and inputs are not comprehensively traced making it a challenge to know the quality and source of the steel

Be able to say with assurance that a product uses Canadian or Foreign steel

Blockchain Artificial Intelligence

• r

Objectives

Be able to track foreign steel in the supply chain Increase efficiency of steel producers Monitor imports and exports accurately and in real-time Facilitate enforcement and compliance Facilitate trade with other nations who are part of the tracing system

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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 inputs across entire production process Helps firms record price, date, location, quality, contracts and other relevant information Visibility of activities and reveals where assets / products are at any point in time, who owns it and what condition or state it is in Users from anywhere can add to the chain

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HOW IT WILL WORK

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AI Analytics Platform Standardized data held in data lake or cloud

Blockchain

Economic Data Raw Materials Suppliers Steel Product Manufacturers External Government Reporting, Analytics and Enforcement Steel Producers Steel Distributors Steel Product Retailers Transaction Processor Nodes International Customs Enforcement

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TRUE NORTH REBAR COMPANY – SUPPLY CHAIN USECASE

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Electric Arc Furnace Ladle Furnace Continuous Casting Machine Rolling Mills Cooling Bed Rebar Wholesale Distributors Domestic Foreign Import

In addition, tracking details include relevant import documentation (e.g. import declaration form B3-3), and means of transportation (e.g., port of entry) Raw materials Raw materials Tracking includes price, quantity,

• rigin, contracts,

& transportation Tracing / Certification

AI Platform

Used by Government and Business – access determined by agreed upon framework

Construction Domestic Use Export

In addition, export documentation (e.g., export declaration form B13A) and relevant import documentation is captured in the chain.

Direct Reduced Iron Hot Briquetted Iron Scrap

Tracking includes price, quantity, origin, contracts, & transportation

Predictive insights for: supply, demand, inputs, X&M data, pricing data, and other economic data CBSA

Import & export documentation

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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 Closed as of February 15, 2019

TIMELINE

Challenge Opened on December 6, 2019 Phase 1 Proof of concept Up to 6 months Up to 2 years Phase 2 Prototype development Phase 3 Commercialization