Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers.
Host: Today, we're diving into a fascinating case study titled "How Walmart Canada Used Blockchain Technology to Reimagine Freight Invoice Processing."
Host: It details how Walmart Canada and its 70 third-party carriers completely overhauled their freight invoicing system using a shared, blockchain-enabled platform to create a single, trusted source of information for every shipment.
Host: And to help us unpack this, we have our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Thanks for having me, Anna.
Host: So, Alex, before we get into the high-tech solution, let's talk about the problem. What was so broken about the old system?
Expert: It was a massive headache, Anna. The study highlights that up to 70% of freight invoices were disputed. Imagine that—seven out of every ten invoices caused a problem.
Host: Seventy percent? That sounds incredibly inefficient.
Expert: Exactly. This created huge administrative costs and long payment delays. The process of reconciling who was right and who was wrong was manual, complex, and could take weeks, sometimes months.
Expert: It wasn't just about money; it was straining relationships. The study notes the situation had reached a 'breaking point', with carriers threatening to stop working with Walmart because they weren't getting paid on time.
Host: So it was a financial drain and a relationship killer. A classic supply chain nightmare.
Expert: Precisely. As the former CIO described it, it involved "a small army of people on both sides" just chasing down facts.
Host: So Walmart Canada knew they needed a drastic change. How did they approach this? What does the study describe?
Expert: They didn't just want to patch the old system. The study points out a senior executive asked a key question: ‘Instead of reducing reconciliations, can we remove them altogether?’ That reframed everything.
Expert: They partnered with a technology firm, DLT Labs, to build a platform called DL Freight. The core idea was to stop creating separate invoices after delivery. Instead, they would jointly build one single, shared invoice on the blockchain while the shipment was in progress.
Host: So it's like both parties are looking at the same digital document from start to finish?
Expert: That's the perfect way to put it. A single source of truth, updated in near real-time with data from GPS and other IoT devices on the trucks.
Host: And the results were... pretty impressive, from what the study found.
Expert: Impressive is an understatement. The study reported that disputed invoices dropped from that 70% figure down to under 2%.
Host: Wow. From 70 percent to less than two. What did that do for the payment timeline?
Expert: It completely changed the game. Invoice finalization went from taking weeks or even months to happening within 24 hours of delivery. This meant carriers got paid on time, dramatically improving their cash flow and financial stability.
Host: And the process itself must have gotten simpler.
Expert: Absolutely. The study visually shows how the old, manual workflow had 11 complex steps. The new, automated process on the blockchain has just five efficient steps, eliminating all the manual checking and arguing.
Expert: And just as importantly, it rebuilt trust. With full transparency, those strained relationships improved dramatically.
Host: This is the key question for our listeners, Alex. It's a great story for Walmart, but what are the broader takeaways for other businesses, even those outside of logistics?
Expert: The first big takeaway is that this is a prime example of blockchain solving a tangible, expensive business problem. It’s a model for any industry where multiple companies need to trust the same set of data.
Expert: Think about royalty payments, insurance claims, or complex manufacturing. Anywhere you have disputes and reconciliation costs, a shared, distributed ledger could be the answer.
Host: So it’s about identifying that costly friction that happens between companies.
Expert: Exactly. And the study offers another critical strategic lesson: reengineer the process *before* you automate. They didn't just digitize a broken 11-step process. They re-imagined a better 5-step process and then built the technology to support it.
Expert: One final point: the data becomes a new strategic asset. The study notes that Walmart is now using the trusted, real-time data to run predictive analytics and find new efficiencies in their business.
Host: This has been incredibly insightful. So, to sum up: Walmart Canada faced a massive invoice dispute problem that was costing them money and damaging partnerships.
Host: They implemented a blockchain solution, not just to speed things up, but to fundamentally reengineer the process, creating a single, trusted source of truth for themselves and their 70 carriers.
Host: The results were a staggering drop in disputes, faster payments, and stronger relationships. And the key lesson for all businesses is to look for that friction between companies and consider how a shared, trusted system could eliminate it.
Host: Alex Ian Sutherland, thank you so much for breaking this down for us.
Expert: My pleasure, Anna.
Host: And thank you for tuning in to A.I.S. Insights — powered by Living Knowledge. Join us next time as we translate academic research into actionable business intelligence.