This essay will present Walmart’s application of blockchain to solve its supply chain challenge.

The service of moving an enormous quantity of goods (many of which are perishable) across
borders, time zones, and different climates is a massive operational challenge. According to
Vitasek (2022), each load shipped requires tracking data such as stop locations, gallons of fuel,
and temperature updates that need to be independently calculated and incorporated into each
invoice. With over 200 data points that needed to be factored into invoices, 70% of Walmart’s
invoices used to require correction efforts. There were increased transaction costs and unsatisfied
employers with their delayed payment.
Walmart identified that the problem was the number of information systems between them and
its carriers that could not communicate with each other. Consequently, corrections had to be
made manually — a hard, boring, and time-consuming process. The solution was to create a
blockchain network that would solve the problem of incompatible enterprise systems and create
a single shared source of information for everyone. At first, they were skeptical because
blockchain technology had not been used in a critical function in business before. Additionally,
they had to decide whether it would be better to have a public or private blockchain network.
Walmart Canada then called DLT Labs to help them develop a network. A pilot version initially
involved Walmart Canada, and Bison Transport was released in January 2019 after being
meticulously tested. It was successful, and in March 2021, the network, known as DL Freight,
was rolled out to 69 other carriers. The system continuously gathers information at every step —
from the tender offer from the carrier to the proof of delivery and the payment approval. This
information is automatically taken and synchronized in real time and is visible only to the parties
involved in the transaction. Today less than 1% of invoices have discrepancies, and these
differences are easily overcome.
Reference:
Vitasek, K., Bayliss, J., Owen, L., & Srivastava, N. (2022). How Walmart Canada Uses
Blockchain to Solve Supply-Chain Challenges. Harvard Business Review Digital Articles, 1–7.