To help it, Walmart Canada turned to DLT Labs, a leader in developing and deploying innovative enterprise solutions using distributed ledger technology. Would it be better to have a public blockchain network like those used for cryptocurrencies or a private blockchain network?

Plus, there were multiple flavors of blockchain. But there were skeptics because, at that point, blockchain technology had not been used in a substantial, business-critical function. One of Walmart Canada’s tech leaders suggested automating the process by creating a blockchain network, which would overcome the problem of incompatible enterprise systems and would establish a shared single source of truth for all parties. Consequently, reconciliation had to be performed manually - a labor-intensive, time-consuming process riddled with inconsistencies. And with 70% of invoices requiring reconciliation efforts, there were increased transaction costs and unhappy carriers waiting for payments.Īn analysis identified the root cause of the problem: the use of multiple information systems between Walmart Canada and its carriers that could not talk to each other. With over 200 data points that needed to be factored into invoices, it is easy to see how the invoice and payment process could be fraught with data discrepancies. For example, each load shipped requires tracking data points such as stop locations, gallons of fuel, and temperature updates that need to be independently calculated and incorporated into each invoice. The essential service of moving a massive quantity of goods (many of which are perishable) across borders, time zones, and different climates is an enormous operational challenge. Walmart Canada delivers over 500,000 shipments annually to distribution centers and stores across Canada, using both its own trucking fleet and third-party carriers. The sheer magnitude of the data was immense. The initiative started when one of us (John Bayliss) and his Walmart Canada team began thinking about new ways to solve the problem. Then Walmart Canada pioneered a solution: It employed blockchain, a distributed-ledger technology, to create an automated system for managing invoices from and payments to its 70 third-party freight carriers. However, its prowess could not insulate it from a problem plaguing the transportation industry for decades: vast data discrepancies in the invoice and payment process for freight carriers, which required costly reconciliation efforts and caused long payment delays. Walmart has long been known as a leader in supply chain management.

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