SCAN / DHS Adopt Blockchain Solution Improving Supply Chain Security for 40% of North American Imports

A BULLET POINT OVERVIEW

The SUPPLIER COMPLIANCE AUDIT NETWORK is an association of North American retailers exercising $1.5 trillion annual purchasing power. SCAN has 55 members including many of the largest retailers in the world which collectively account for 40% of all North American imports.

https://www.scanassociation.com/

SCAN exists to coordinate a standardized approach and audit criteria for importer compliance with US Dept of Homeland Security CTPAT rules.

CTPAT = Customs Trade Partnership Against Terrorism

CTPAT primary objectives :

• Verify the authenticity of US imports
• Prevent the introduction of undeclared cargo
• Strengthen international supply chains
• Improve US border security

https://www.cbp.gov/border-security/ports-entry/cargo-security/ctpat#

To accomplish this SCAN conducts audits on factories outside the United States to ensure they meet minimum security requirements. This includes 20,000 factories in 74 countries. Annually SCAN conducts 14,000 factory audits in partnership with 850 authorized auditing firms.

In 2020 SCAN worked closely with the British Standards Institution (BSI) to develop a solution to improve the verification of factory audits and the accessibility of audit information for SCAN members. This was done in response to an open call by US DHS. BSI worked with supply chain focused multi-blockchain knowledge graph project Origin Trail to integrate knowledge graph structured record-keeping and realtime verification of credentials via blockchain into the SCAN factory audit verification process.

How does it work?

• Auditors score factories according to standardized security criteria
• Audit results stored in Origin Trail knowledge graph
• Converted to QR codes for customs agents to easily access

This is a permissioned solution, only parties approved by SCAN can access this information, particularly US Dept of Homeland Security + US Customs.

What problems does the Origin Trail SCAN factory audit implementation solve?

• Forged factory audit certifications
• Inaccessible factory audit histories
• Inability to quickly verify auditor credentials

Origin Trail’s solution provides SCAN members with :

• Realtime verification & display of up-to-date factory audit reports

• Access to audit report history, previous corrective actions, and risk assessment metrics in a modern user interface

• The ability to export audit data in a standardized format

Dan Purtell, British Standards Institution Head of Innovation / 30 year supply chain security professional & DHS advisor :

“We’re very pleased with the way it turned out. It’s been a very good strategic partnership with Origin Trail”

“It creates value, It creates instant credentialing and trust mechanisms for clients, but I think more importantly nobody else is doing this and it’s really going to cause massive growth within this association which is one of their overall objectives.”

In a Dec 17, 2020 web conference hosted by Origin Trail Purtell further noted the immediate applicability of this technology in other fields including medical devices, pharmaceutical, automotive, and aerospace industries in which BSI holds a dominant market advising position.

SCAN Origin Trail Implementation Phase 2 & 3 :

• Expand scope to include verification of auditor training certifications

• Integrate with authorized customs agencies around the world

“We’ve got some very exciting things that we’re working on, with Origin Trail, in these respective areas that really I think are very promising, they’re desperately needed and they’re going to further bring trust to the supply chain”

Source :

BSI Dan Purtell on the @Origin_Trail SCAN implementation Dec 17, 2020

Origin Trail :

https://origintrail.io/
https://origintrailexplained.info/

Origin Trail trades on Uniswap, Bittrex International, Nash, and Kucoin

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