SAP Blockchain in Industry Scenarios: Uses

 Introduction: Technology has been progressing in last 2 decades. Newer technologies

methods of improving business processes with a wider reach to customers globally. With
Advent of modern technologies, threats, hacks, Insider attacks etc have been rampant in
industries causing Huge economical losses to organizations.

SAP has been innovating with partners in the Block chain space to provide business value to
its. customers and insulates you and your partners from the technology’s volatility & threats.

 What is a blockchain?
A Block chain can be defined as a digital ledger in which transactions made in Business
processes that are recorded chronologically. Blockchain keeps a record of all data
exchanges. This record is referred to as a “ledger” and each data exchange is a “transaction
“. Every verified transaction is added to the ledger as a “block”.
In simple terms, a blockchain can be described as an append-only transaction ledger. What
that means is that the ledger can be written onto with new information, but the previous
information, stored in blocks, cannot be edited, adjusted or changed. Blockchains are
consensus-driven.

 Permissioned Block Chain: Access and permissions are controlled by pre-selected set
of participants
 Permission less Blockchain: Open for everyone to participate and read/write

Identifying Block chain Use cases

 The process requiring multiple participants to share data internally.
 Process requiring Multiple participants to write/Create Data
 Take Decisions internally by accessing data provided by other members

Value Generating Block chain has 3 components

Technology in the form of Binary codes of 0 & 1 with business process integration sharing in
network.
 Use Case 1: Drug Supply Chain Storage in LE process
Millions of dollars are spent by drug manufacturers on cold chain maintenance right from production to
end customer usage. Reason being, medicines will be destabilized once exposed to higher
temperatures.
Longer transit times, extreme climate change between origin and destination, and shipping delays all
increase the risk profile during transport. In current process end Customers procuring these drugs have
no visibility on cold chain maintenance which is very critical during transit of these medicines.  Many
biologic products must be maintained within tighter temperature tolerances in refrigerated (+2°C to
+8°C), frozen (-10°C to -20°C) and ultra-low storage (-70 to -90°C).

Solution based on SAP Blockchain: A Block chain can be defined as a digital ledger in which
transactions made in Business processes that are recorded chronologically. Blockchain keeps a record
of all data exchanges. Data is stored in form of blocks, that cannot be edited, changed or deleted.
This data can be accessed by all the parties in Blockchain who are authorized, making it
secured.

Process:
 A Unique identifier (QR code/Bar code) is imprinted on each package by Manufacturer.
 This information is shared with Inhouse Logistics department during delivery.
 Sales order is received from customer for which Outbound delivery is created, Picked &
goods issued.
 Delivery documents are shared with 3PL
Once above steps are completed, the package is in transit and temperatures can be recorded by
respective stake holders at regular intervals and can be uploaded to nodes through UI interface which
can be accessed by all stake holders. (These data blocks are appended to one another but cannot be
changed or deleted). The End Customer (Hospital, Depot, C& F locations) can view the real data on the
Blockchain which helps in taking a decision to accept/reject the package.
This process can be made more Robust by using automated data upload to Blockchain with help of IoT
sensors.

 Data can be accessed by all stake holders from Cloud consortium

Use Case 2: Brand Validation
Brand equity is a set of brand assets and liabilities linked to a brand name and Logo, which add to or
subtract from the value provided by a product or service. Consumers are brand conscious in current
time and are ready to pay for the original brands (Jewellery, Apparel, Foot wear, etc). Millions of
dollars are spent by organizations every year to build a brand in the form of advertisements on media.

Issue: Dealers/Consumers are always facing the fear of whether the product being procured / sold is
original or replica. Replica goods are flooded in the markets Globally & are causing huge losses to the
major brands across Organizations.

Solution based on SAP Blockchain: Marketing companies can adopt the Blockchain technology in
their business processes thus can ensure the Original brands are reaching the Company stores/
Dealers across globe. A digital ledger is created in consortium where in all transactions made in
Business processes are recorded chronologically. Blockchain keeps a record of all data exchanges at
every step. Data is stored in form of blocks, that cannot be edited, changed or deleted. This data
can be accessed by all the parties in Blockchain who are authorized, making it secured.

Process:
 A Unique identifier (Design code/QR code) is created for every piece Manufactured and is
tagged.
 As a part of distribution, the Goods change hands before they reach the dealer /Company
outlet. Risks are associated in the form of stolen/replicas goods making their way to company
outlets for high value Luxury items.
 The piece can be tracked to store location across globe till sold from the Company
outlet/Dealer.

Product is manufactured. The stock is taken to inventory

& unique Identifier is tagged to same. The transaction
data is stored in consortium as blocks.

Data can be viewed by organizational employees & can

always be tracked for inventory valuation

Sales order (Cash Sale ) is created in System when end

customer is buying from Retail store with verification of
Unique identifier on merchandise. The data is uploaded
on Nodes in consortium which can be accessed by
company.

Benefit: Customer is benefited with purchase of Genuine Product from store