The Challenges at Hand

Walmart Canada faced a major hurdle in promptly and accurately verifying and reconciling freight invoices. The root of the problem lay in a lack of transparency within its complex supply chain invoicing process, leading to several other challenges:

• Managing extensive data across various supply chain partners
• The emergence of data silos from different, disconnected systems
• Lengthy, manual, and error-prone invoice and payment workflows
• Limited visibility into the financial implications of invoice reconciliation

This fragmentation resulted in multiple versions of data "truth." Without a single, reliable data source, accurate reconciliation was nearly impossible. Walmart Canada recognized that enhancing visibility across its supply chain was crucial for precise invoice reconciliation and preventing revenue loss.

The blockchain framework, Hyperledger Fabric, ensured an immutable and auditable record of all transactions, providing genuine data transparency.

The Push for a Blockchain Solution

The initiative was spearheaded by John Bayliss, Senior Vice President of Logistics at Walmart Canada. He noted, "We had several carriers expressing concerns about the delays in settling accounts. Initially, one of our tech leaders proposed exploring a blockchain network, but we were uncertain. What was clear was that we were not blockchain experts and would need a partner willing to innovate alongside us. Thus, I presented this challenge to the team, which led us to DLT Labs."

DLT Labs responded to the request for proposals (RFP) issued by Walmart Canada in mid-2018, and shortly after, presented our proposal in person.

Building a Solid Foundation

DL Asset Track™, a flagship product from DLT Labs, was already proving successful in tracking valuable resources like cobalt in parts of Africa. The Hyperledger Fabric blockchain architecture provided an immutable trail of all transactions, ensuring real data visibility.

With the core platform established, developing a solution for Walmart Canada required minimal configuration, serving as a distinct advantage for them.

Crafting a Comprehensive Solution

Our objective was to design a system that provided enhanced insight into Walmart's invoice, reconciliation, and payment processes. This involved an end-to-end audit of all related processes. While this approach took longer, it allowed us to create a solution that directly addressed their challenges without unexpected issues arising in the future.

This comprehensive strategy enabled us to:

• Eliminate time-consuming tasks in existing workflows.
• Simplify complex invoicing and dispute management processes.
• Implement enhancements benefiting both Walmart Canada and its carriers.
• Uncover financial leaks that had previously gone unnoticed.
• Make further improvements identified during our rigorous user acceptance testing (UAT).

An Exciting Start

Feedback from our initial presentation was very promising, although Walmart Canada had already finalized its annual technology roadmap. To meet their requirements, we needed to act swiftly. After some internal discussions and strategic planning, we proposed a complete application configuration within 90 days. They accepted, and we commenced work immediately.

Approximately six months later, following configuration, testing, security audits, and deployment, we launched the first blockchain-based freight payment network in January 2019, with Bison Transport as the initial carrier partner. It was vital to involve a significant carrier like Bison to rigorously test every capability.

The pilot program was a tremendous success, resulting in nearly a 50% reduction in disputes. Subsequently, the remaining Walmart carriers were integrated into the platform starting in October 2019.

A Milestone Achieved

The results of this partnership yielded impressive early outcomes:

• A unified platform for invoice creation and real-time reconciliation.
• Automation that significantly reduced error rates and processing times.
• An accessible platform for users regardless of their technical expertise.
• Superior control over data.
• Seamless integration with legacy systems through EDI, Portal, and API, requiring minimal coding.

Initial feedback from carriers was overwhelmingly positive, with a notable improvement in invoicing and reconciliation processes, leading to almost no disputes. Following this early success, Walmart Canada onboarded its remaining carriers into the full production environment on February 1, 2020.

Ongoing Improvements

As the platform progressed, several upgrades were introduced:

• Enhanced reporting features that support greater report automation and scheduling.
• Capability for multi-format file uploads and data capture, including images, text, and CSV.
• Advanced record-level versioning for faster data volume management.
• Automation features serving as validators for intricate processes.
• Expanded permission sets for configuring business workflows.
• Increased flexibility during running workflows to facilitate easier reconciliation.
• More automated user onboarding processes for quicker certification.
• Business workflows capable of handling scenarios with multiple decision points.

Delivering on Promises

After a year of successful implementation, DL Freight is now managing over 70 transportation carriers and processing over 500,000 loads annually, with only a 2% discrepancy rate compared to the previous 70% — representing a 98% reduction in disputes. The solution operates on more than 600 virtual machines (VMs), securely handling data from thousands of transactions daily.

DL Freight was honored by the Council for Supply Chain Management Professionals (CSCMP) as one of the top two most innovative supply chain solutions of 2020 in their esteemed Supply Chain Innovation Awards.

At DLT Labs, we are committed to continuously enhancing DL Freight, maintaining its position as a market leader and supporting sustainable competitive advantages for businesses in logistics.

Later this week, we will unveil DL Freight 2.0 and its extensive list of enhancements. Be sure to check our blog or follow us on LinkedIn to stay updated on these exciting developments.

Author — Abhisek Mohanty, DLT Labs™

About the Author: Abhisek is a technology enthusiast with DLT Labs since 2018, serving as a Technical Communicator. With over five years of experience, he collaborates with various teams in Business Analysis, Marketing, and Product Management, simplifying product usability and supporting design-related projects.

Disclaimer: This article was originally published on the DLT Labs Blog page: