Tata Steel UK and iov42 to tackle steel industry's efficiency challenges
Tata Steel UK and iov42, a UK based blockchain-inspired start-up, have announced they have been selected for the second time by Blockchain Connected, for the Demonstrating the Potential of Blockchain challenge, funded by the Welsh Government.
The collaboration will further showcase Wales as a growing centre of excellence for blockchain applications, by creating an industry-wide solution to digitally capture the receipt of steel deliveries. The solution will work with existing logistic partners of Tata Steel UK, to further improve the transparency, security, and the overall efficiency of the steel supply chain.
In December 2022, 28 countries across Europe, the Middle East & Africa, recorded cargo losses of more than 17 million in 31 days due to stolen freights.
iov42's Distributed Ledger Technology (DLT) will allow Tata Steel UK to identify stakeholders involved in the delivery and exchange of goods, providing irrefutable evidence of an item's receipt.
"After our successful collaboration with Tata Steel UK in 2022, we are thrilled to be working with the organisation again to build on our existing partnership," says David Coleman, Chief Product Officer at iov42.
"Since the creation of the Digital Product Passport last year, we have continued to support their efforts regarding decarbonisation and responsible sourcing.
"We are excited to be continuing this journey with the development of this new solution, further showcasing how Distributed Ledger Technology can build trust, save money, and cut back on environmental damage."
Richard Nicholls, Head of eCommerce & EDI at Tata Steel UK, adds, "We are excited to be partnering with iov42 again thanks to the support of Blockchain Technology and the Welsh Government.
"We produce and move over 3 million tonnes of steel per year, across our locations and to our customers," says Nicholls.
"Underpinning this activity is significant engineering and technical development work, helping optimise outcomes at every stage. From ensuring and digitally capturing the arrival of steel at the correct destination, through to tracing its entire product lifecycle.
"We want to make sure we are doing everything we can to support our customers to manage their valuable inventory through improved traceability and accountability."
Currently, 28.5 billion paper trade documents are being printed and flown in shipments daily. The move over to digital will not only cut down on paper costs and usage but will also cut down on 10% of emissions.
The solution will also enable organisations to:
- Track the point of receipt in real-time - reducing the risk of delays or disruptions.
- Improve efficiency by removing the administrative burden associated with delivery management.
- Enhance security by ensuring that goods are delivered to the correct recipient by requiring them to sign for the delivery using an electronic cryptographic signature.
- Improve cash flow by removing the delays between an item being delivered, invoiced and paid for.
The announcement follows on from iov42's recent collaboration with Prime UK for the improvement of halal traceability solutions.