DLT Demand Sensing Network for Real-Time Supply Chain Visibility
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Solution Overview
Problem
Existing supply chain management technologies lack real-time visibility and responsiveness to changes in demand, leading to artificial shortages and inefficiencies, particularly highlighted by disruptions such as COVID-19-related shutdowns and natural disasters.
Innovation Solution
A demand sensing network utilizing distributed ledger technology (DLT) nodes enables real-time sharing of supply chain data among participants, allowing for rapid detection of demand changes and dynamic adjustments in production, distribution, and communication channels to optimize product allocation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If traditional supply chain communication channels are used, then producers can learn demand from large commercial users, but visibility into demand from other supply chain outlets (such as grocery stores) is not provided
Solution Approach 1:
The patent merges multiple communication channels and data sources into a single unified blockchain-based demand sensing network. This network consolidates demand information from diverse outlets including large commercial users, grocery stores, and other supply chain participants, eliminating the need for separate communication channels while providing comprehensive demand visibility across all outlets.
Solution Approach 2:
The blockchain-based demand sensing network serves multiple functions simultaneously: it acts as a communication channel, a data storage system, a demand detection mechanism, and a coordination platform. This universal system replaces multiple specialized systems, providing broad demand visibility across all supply chain outlets without requiring separate infrastructure for each type of outlet.
2Measurement precision
If existing supply chain networks are used, then current operations can be maintained, but real-time detection of supply chain changes and demand changes is not enabled
Solution Approach 1:
The patent implements a continuous feedback mechanism where the blockchain network continuously receives, records, and propagates demand information from all supply chain participants in real-time. This feedback loop enables immediate detection of demand changes and supply chain disruptions, allowing the system to respond promptly rather than relying on periodic or delayed reporting mechanisms.
Solution Approach 2:
The system performs preliminary actions by maintaining continuous real-time monitoring of demand signals across the supply chain before disruptions fully manifest. The blockchain network proactively detects early signs of demand changes or supply chain issues, enabling participants to take preventive measures before actual shortages or waste occur, rather than reacting after problems have already materialized.
3Reliability
If supply chain disruptions occur, then actual shortages may happen, but the full impact of those shortages is difficult to identify
Solution Approach 1:
The patent segments the supply chain into discrete blockchain nodes representing individual participants (producers, distributors, retailers, etc.). Each node independently reports its status, inventory levels, and demand information to the blockchain network. This segmentation allows the system to precisely identify which specific segments are affected by disruptions and quantify the exact impact on each participant, providing granular visibility into shortage effects throughout the supply chain.
Data Source
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AI summary
Embodiments of the present disclosure leverage distributed ledger technology (DLT) to maintain the privacy of data associated with different supply chain participants and allow that data to be shared in a controlled manner (e.g., using permissions and smart contracts). The sharing of the supply chain data enables actions to be determined to optimize distribution of products within the supply chain, such as to supply products to consumer-facing outlets in quantities commensurate with real-time demand, thereby resulting in a more efficient supply chain with minimal waste and excess inventory. Moreover, the DLT nodes leveraged by the disclosed demand sensing network provide real-time end-to-end visibility into the demand and transport of products within the supply chain, which allows rapid action to be taken in response to changing demand.