How we developed an ERP system with integrated Blockchain-as-a-service (BaaS).
An ERP System with integrated Blockchain-as-a-service (BaaS) for a top Automotive company.
Project Overview
Business Challenge
Our client was an automotive manufacturer, and the complex nature of the Supply chain with disjointed and geographically spread processes was creating traceability and transparency issues for our client. The customer experienced a experiencing a significant increase in cost to manage supply chain processes, maintenance, manufacturing, financial transactions, transparency, and traceability. Our responsibility was to migrate from an on-premise internal database solution to a cloud-enabled full-featured ERP solution and help Supply chain operations to become more global and allow for the best possible sourcing and manufacturing economy. We had to ensure scalability and flexibility to incorporate newer requirements.
TekML was engaged as a product development partner to build a centralized Enterprise Resource Planner (ERP) software, that works together with Blockchain as a Service (BaaS) to form a fully integrated design that allows developing, hosting, and managing their applications, smart contracts, and distributed ledgers in a cloud ecosystem.
Project Execution
Solution
Our team started with a kickoff meeting to establish project objectives, then underwent a two-week analysis period to produce a project plan outlining the next steps. We developed the ERP platform, the middleware for connecting ERP with blockchain and Blockchain as a service (BaaS).
TekML team quickly assimilated information and made significant advancements in deliverables, proving and refuting numerous methodologies. We developed and implemented the SAP S/4HANA ERP platform and framework for Automotive Industry 4.0. We enabled our client with new business practices and asset intelligence across networks. S/4HANA provided a 360-degree view into the product, R&D and Engineering lifecycle, Manufacturing and Logistics, Supply Network, Sales Planning, Aftermarket Services, Financial Management, and Human Capital Management. TekML implemented an ERP platform, data store, and blockchain service.
Our engineering team implemented the distributed Blockchain-as-a-service (BaaS) with several attributes to enhance former characteristics like transparency through decentralization, security, and data integrity. The implementation of Blockchain service features smart contracts that carry out transactions by predetermined terms and conditions which are stored in a decentralized environment in the Blockchain. We enabled the utilization of the supply chain processes with the aim of managing the services, payments, procurement processes, accounting affairs, and human resources in a decentralized model.
We created a data store for storing hash (addresses) for each transaction, integrated with ERP and Blockchain-as-a-service (BaaS) layer. The data store was arranged through auto-hash transaction sets and making data sets accessible to all systems using specific keys.
Applied technologies
The TekML team used the following technologies:
- SAP S/4HANA ERP platform
- Hyperledger Fabric Blockchain Framework
- Amazon Quantum Ledger Database (QLDB)
- Amazon Managed Blockchain
- Python
- NodeJS
- Docker
- Client's Jira/Confluence
- Bitbucket
Project results
TekML's engineering team successfully developed the SAP S/4HANA ERP platform and Blockchain-as-a-service (BaaS) consisting of distributed ledger, consensus algorithm, and smart contracts. Implementing this all-in-one ERP solution allowed our customers to streamline the workflow, and improve supply chain processes, transparency, and traceability.
The ERP system enabled multiple success metrics:
- Reduced disputes by 95% over purchases, invoices, shipments, and returns by integrating ERP with WMS and MES systems.
- Able to settle the disputes within minutes by using blockchain technology in the logistics and procurement area.
- Product tracking has significantly improved by bringing in transparency and preventing counterfeit transactions using blockchain.
- With ERP platform generating financial transactions by integrating with blockchain helped these transactions be transparent and reliable.