Innovative Product/Box/Package Compliance Verification for End to End Logistic

Supply Chain via Distributed Ledger Technologies

When do you wish to start your project?
11 May 2020
Duration in months
6 months
Innovation area
Digital technology
Is this application a resubmission?
No

Project summary
AgriLedger's SmartChain is an end-to-end intelligent value chain securing trust in
products' origin, quality and compliance using frontier technologies. We are
collaborating with EPG Economic and Strategy Consulting which supplies COVID
rapid testing kits to the UK and India sourced from China. Trading products
between these countries has always been difficult due to systemic weaknesses,
such as:

Not being able to distinguish between Chinese government-

approved/sanctioned factories or scam setups, meaning millions of sterling
worth of faulty equipment has been procured.
Lack of available product information allows unscrupulous 'middlemen' (i.e,
hoarders, etc.) to exploit end-users as they can reroute and repackage
products. Product prices can be marked up and people's country of origin vs.
quality misconceptions can be preyed upon.
No product movement or traceability data leads to a lack of trust, between
exporters and importers, which in turn makes it difficult to negotiate commercial
terms. This causes undue delays which in this case can be fatal.
Some test kits fail, as proper transportation procedures are not observed. Kits
need to be kept at a specific temperature throughout their journey until final use.
Since the temperature of the units is not tracked, no party can be held
accountable in case of Standard Operating Procedures failure.
SmartChain's blockchain platform brings transparency and trust by enabling full
end-to-end traceability of products, tracking of all financial obligations and
facilitating immediate distribution of payments to participating stakeholders.

SmartChain's distributed ledger technology-based platform has already delivered

results in even the most infrastructure-starved operating environments for fruit
exporters in Haiti. By partnering with IoTT Innovations, to develop advanced
sensors, a mass, low-cost track and trace solution can be implemented to hasten
the UK's response to COVID-19 as well as revolutionize the larger FMCG sector in
the longer-term.
Our collaboration directly addresses all the issues stated previously by:

Traceability: always know where and in what state products are kept, reducing
uncertainty in the supply chain process
Know your suppliers: tamper-proof identities throughout
Payments/Commercial Terms: financial and commercial trade solution
transformation through disintermediation, automation, speed, and reliability
Quality and assurance: Ensuring compliance to SOPs throughout the trade
process
AgriLedger's solution significantly addresses and reduces the impact of these
systemic issues. By increasing the availability of COVID-19 test kits, can help
British people safely get back to work, so raising productivity and earnings power.

Public description
SmartChain is a blockchain platform that brings transparency along the supply
chain and builds trust among the various stakeholders. It enables full end-to-end
traceability of products, tracking of all related financial obligations and facilitates
the immediate distribution of payments to participating stakeholders.

AgriLedger is looking to deploy its solution towards the securitization of Fast-

Moving Customer Goods (FMCG) concentrating on the supply COVID rapid
testing kits sourced from China. Trading products from China can be a challenging
proposition due to systemic weaknesses, such as:

Security
By not being able to distinguish between Chinese government
approved/sanctioned factories or scam setups has led to the procurement of
millions of sterling worth of faulty equipment.

Transparency

Lack of available product information allows unscrupulous 'middlemen' (i.e.

hoarders) to exploit the end-users as they can reroute and repackage products.
By doing this product prices can be marked up and people's country of origin vs.
quality misconceptions can be preyed upon.

Traceability

No product movement or traceability data leads to a lack of trust, between

exporters and importers, which in turn makes it difficult to negotiate commercial
terms. This causes undue delays which in this cause can be fatal.

Quality

Some test kits fail, as proper transportation procedures are not maintained. The
kits need to be kept at specific temperatures throughout their journey post-
manufacturing till final use. Since the temperature of the units is not tracked, no
party can be held accountable in case of SOP failure.

Currently, SmartChain can deliver a distributed ledger technology-based platform

that has been built from the ground-up to provide results in even the most
infrastructure-starved operating environments. We partnered with IoTT
Innovations, a UK IoT solution provider, to develop advanced sensors and tags to
revolutionize the FMCG market by implementing a competitive track and trace
solution.

Describe how your project fits the scope of the competition.

Our pilot offers a leading-edge technology to deliver COVID-19 rapid tests to the
UK in the most cost, time and quality effective manner. By the end of June, Smart
Chain can be the UK and Worldwide rapid low-cost supply chain service to deliver
COVID-19 tests all around the world.

Couriers and delivery (rural and/or city-based):

This pilot resolves supply chain issues between China and the UK (and
potentially other countries). It involves delivering products from multiple
manufactures of the COVID rapid testing kits on the Chinese side and
procurement by the and public/private buyers on the UK (and potentially Indian)
side. By improving the tracking and sourcing information available to all the
stakeholders it will remove obstacles that slow down the process of delivery and
improve courier efficiency.
Healthcare

Pilot directly impacts the healthcare of individuals in the UK by securing the

supply chain, as the testing kits are vital to testing and checking the spread of
COVID-19. The tests are ideally suited for hospitals, clinics, and laboratories,
but can also be effectively deployed by schools, airports, places of work, etc., to
become a compelling force in the fight against this global threat and allow the
workforce to return to work more rapidly. When the pilot is successful it can be
rolled out to other value chains.
The speed with which the tests can reach a target population is directly
proportional to how many lives can be saved, therefore, the efforts made by this
pilot to remove obstacles is vital.
On average, the shipping and delivery are impacted by the need for inspection
before shipping. This is two days of loss as an individual must go to the
manufacturers' location to inspect. Our pilot will remove this two-day loss and
will also provide trust for the products delivered, therefore potentially reducing
additional loss by certifying provenance.
Industrial Strategy Challenge Fund (ISCF)

The main purpose of the ISCF is to raise productivity and earning power in the
UK. By making supply chain management more effective, and product
information more readily available AgriLedger's platform will address the biggest
industrial and societal challenges today.
Application questions
Have you received funding from Innovate UK before as a project partner?
No

Please download the de minimis declaration template.

De Minimis form attached

Uploaded Download the de minimis declaration.

AgriLedger - INNOVATE UK de minimis declaration.pdf
(/application/56952/form/question/15217/forminput/36760/download) (opens in a
new window).

What is the problem you wish to solve, who is it a problem for, and what is
innovative about the approach or technology?
This pilot focusses on a multi-billion pound market as it revolves around the export
of the COVID rapid testing kits, which are in high demand globally. Initially, this
pilot will address a smaller market share with existing orders of 50k-60k units,
valued at GBP 400k-500k.

The route to market for this pilot will be to grow organically, by using EPG's and
AgriLedger's current business relationships, respectively, as a starting point. Once
success has been demonstrated the platform can be extended globally and to
other value chains.

Achieving the following goals, in the short term, would have an immediate impact
on the pace at which UK citizens can be tested for COVID-19. Delivering a
worldwide product to ensure rapid COVID-19 rapid test delivery, will position the
UK at the forefront of this international health crisis.

1. Deliver a high-quality, traceable, low-cost supply chain solution to offer COVID-

19 Rapid Test globally. Pilot going on with India, rest of the world following.
2. Rely on existing technology from Agrileger using blockchain to create a chain of
trust and custody.,
3. Unlying DLT supply chain technology is in production for Haiti supported by the
World Bank. We own the patent for the technology.
4. We partnered with an IoT provider for the production of a revolutionary low-cost
solution. In China, we have entered into a commercial agreement with a
manufacturer of medical solutions to manage locally the supply of the COVID-
19 Rapid Tests.
This pilot implements a blockchain platform that brings transparency along the
supply chain of COVID-19 rapid test delivery and can be extended to support the
PPE procurement. This pilot builds trust among the various stakeholders. It
enables full end-to-end traceability of products, tracking of all related financial
obligations and facilitates the immediate distribution of payments to participating
stakeholders.

The alternatives are very labor-intensive and require agents to travel between
countries to physically verify stocks or products in warehouses or in transit.

AgriLedger and EPG have previous business dealings within China and have
several contacts within the government and business community. In the UK their
business relationships are stronger as both companies including their IoT partner
management teams are UK based.

Our team has a track record of efficient business delivery and outcomes with the
UK government. They have established partnerships within the supply chain for
COVID-19 Rapid Test from manufacturers to government stakeholders in China
and buyer countries.

What will be the specific outputs and outcomes of your project, how will
society benefit, and why do you need public funding to help you succeed?
Problem

The pandemic has caused a total lockdown of society whereby businesses are
unable to function due to a lack of labor. Manufacturing and farming communities
contribute significantly to the UK economy with product sales of £364.7bn in 2016
and revenues of £24Bn of revenues in 2017, respectively. Most industries rely on
labor working physically near each other. Antibody tests are vital to returning from
the lockdown caused by COVID-19 as they demonstrate whether people have or
have not been infected with the virus. The UK government, thus far, has found it
challenging to secure reliable and usable test kits. SmartChain will allow labor to
return more rapidly with the confidence that they have been tested by reliable,
high-quality testing kits.

Solution

SmartChain will deliver an innovative packaging compliance and verification

system via Distributed Ledger Technologies. It will provide innovation and
efficiencies along the supply chain from manufacturers all the way to the end-
users.

Deliverables

Implementation of a secured value chain with manufacturers being equipped with:

product & box code printing for crypto sealing;

encrypted NFC code per test kit;
standard and low-cost RFID tags on each box;
 pallet & package tracking for additional shipping insight by using multiple
performance sensors to read temperature, humidity and C02 levels.
The distribution stage will require augmented and certified automatic inventory on
compliant boxes integrated with standard procedures. We will also be certifying
various manufacturers in China thereby creating a trusted list of suppliers.

Benefits

For wholesalers, retailers, and end-users, SmartChain brings the following

benefits:

Reduced supply chain frauds and enhanced customer RMA's;

backend integration through APIs to validate integrity;
100% anti-cloning technologies which are independent of QR codes or RFIDs;
100% product integrity with instant responsibility identification in case of non-
compliance verification or mishandling,
100% re-use of existing standard logistic tools
(gates/scanners/tags/codes/apps) and an app to simplify and provide data to
every user type.
Why Innovate UK

Securing funding is difficult due to the high levels of uncertainty in the global
financial markets. As per PwC, investments for Q1 2020 are down 16% in 2019.
AgriLedger believes pivoting to respond to the pandemic allows it to provide a
valuable solution to the challenge. This allows us to continue our development and
support and foster a faster recovery for the wider economy.

Achievement

The pilot will bring peace of mind for individuals as they resume their daily life.

Who is the project team, what is your capability to deliver a solution, and
what other support might you need?
We currently work with the world bank and Haiti and developed a blockchain
supply chain product to recreate a chain of trust and better cost distribution to
farmers. We have the technology to ensure complete traceability from farmer to
consumer. This pilot would be another testimony of SmartChain technology
efficiency while providing a world supply chain solution for COVID-19.

We have the team and the partnerships.

SmartChain Team

The team will be headed by Genevieve Leveille, originally from Haiti, she is the
principal founder and CEO of AgriLedger. She has more than 25 years' experience
working within large corporations and banks dealing with financial operations and
supply chain optimization.

Kevin O'Meallan, as Head of Operations is an experienced Operations & Finance

Director, he has worked in various industries including aviation, healthcare, and
blockchain.

Arunabh Khatua, as Head of Strategy, is an accomplished banker and consultant

with extensive experience of managing initiatives from inception to delivery in the
financial services, public sector, and supply chain management sectors.

Mahesh Ramachandran is the Chief Technology Officer and leads a team of six
developers. Mahesh has 21+ years of experience working within software
architecture and designing mission-critical systems across aerospace and
healthcare verticals.

IoT Partner

Carlo Natale is the Head of Business Strategy & Development of IOTT AG, our
subcontractor for the manufacturing of encrypted NFC coded RFID tags. He is a
serial innovator, engineer, and entrepreneur with over 25 years of experience in
M&A and VC investments. IOTT AG has business locations all over the world,
including China. It has also been acknowledged by TECH INVEST Eurore and
CES USA as among the most interesting innovators of 2019.

COVID-19 Rapid Test Manufacturer

Mr. Yuelin Liu is the Executive Director of the China Overseas Chinese Merchants
Association, Executive Vice President of Shaanxi Overseas Chinese Merchants
Association, and Chairman of Shenzhen One Belt and One Road Investment
Development Group. Genevieve and Mr. Liu have worked together previously, and
his governmental connections will help us work through the regulatory
environment.

The pilot can be in production by the end of June 2020. the software has already
been developed and can be loaded/integrated into the buyer and supplier systems
remotely.

This grant will offer the required cash to develop the necessary integration
between SmartChain and our IoT Partner to deliver the right outcomes to the
Chinese Medical manufacturing supply chain and impacted governments.

What you will do with the grant funding and, how will you manage the
project effectively, and manage risks appropriately?
AgriLedger aims to implement and deploy a logistics supply chain verification
system using DLT for verification of compliance.

The project consists of seven work packages:

WP1 - Management & Coordination Activities;
WP2 - Project - Functional Requirements;
WP3 - Application Development;
WP4 -- Smart Packaging;
WP5 - Customer Training, User Acceptance Testing & Fixes;
WP6 - Production Activities;
WP7 - Go-Live.

AgriLedger manages the project and oversees the deployment of the SmartChain
technology, working with the internal technical team and the IoTT Innovation team.
Weekly reviews with management will ensure adherence to timelines and risk
mitigation. ISO 9001 standards will be followed. All aspects of delivery and
document management will be via Azure DevOps. SmartChain IP will be retained
by AgriLedger.

The project will start on 11th May for six months.

WP1

Led: Project Manager (PM)

Brief: Project Kick-off meeting, Creation of Detailed Project Plan, Project Progress
Report, Sync-up meeting, Project Administration, Pipeline.

Costs: £2751

Duration: M1 -- M2

CP: Funding

Deliverables: Project Plan, Progress Report, Communications, Risk Management

Reporting.

WP2

Led: Business Analyst

Brief: Understanding existing processes, Product & Processes Requirement

Gathering & Sign-Off, High-level application design, and value chain process
flows, Create product mock-ups.

Costs: £2,844

Duration: M1 -- M2

CP: Requires WP1 and required by WP5/6/7

Deliverables: Regulatory requirements, mandatory data for certification.

WP3

Led: Technical Architect

Brief: Environment Setup, System & Architecture/Application Design &

Development, Blockchain Development, QA, Cloud Managed Services

Costs: £17,765

Duration: M1

CP: Requires WP1 & Required by WP4/5/6/7

Deliverables: Environment, web interfaces, and APIs

WP4

Led: PM

Brief: Encrypted NFC assessment and integrity validation, RAIN RFID

assessment, inventory and integrity validation, API interoperability, back-office
cloud secure decryption service.

Costs: £20,000

Duration: M1 - M3

CP: Requires WP1/2/3 & Required by WP5/6/7

Deliverables: Smart Package sensors and tags

WP5

Led by: Technical Architect & Business Analyst

Brief: Application Demonstration, Customer Training, User Acceptance Testing,

UAT Feedback, Fixes & Iterations, UAT Sign-Off

Costs: £3,644

Duration: M3

CP: Requires WP1/2/3/4 & Required by WP6/7

Deliverables: User Manual, Security Reports, Pen Testing Report

WP6

Led: PM
Brief: Production Environment Setup, Production Data Setup, Production QA, Dry
Run, Production Confirmation

Costs: £2,132

Duration: M3

CP: Requires WP1/2/3/4/5 & Required by WP7

Deliverables: Production Readiness Report

WP7

Led: PM

Brief: Production Release & Notes, Project Feedback, Approval of Report.

Costs: £751

Duration: M3

CP: Requires WP6

Deliverables: Live run and shipment

Total Project Cost: £49,897