HS2 Ltd has successfully implemented blockchain in a section of its supply pipeline to increase trust, efficiency and value. He hopes to expand his use of the technology to broader supply chain processes.
HS2 Ltd Chief Innovation Officer Howard Mitchell spoke at RCE‘s TechFest on December 2, alongside Costain’s head of strategic growth, Charlie Davies, and head of blockchain for Deloitte’s real asset consulting practice, Alexander Marx. Together, they explained the objectives and results of the blockchain trial conducted by the joint venture Skanska, Costain, Strabag, alongside Deloitte, on High Speed 2 (HS2).
Blockchain is a form of cryptography that connects blocks of information in a secure chain, where each piece of information is given a specific time stamp and transaction data that is virtually impossible to hack or change. This means that all data entered into the blockchain only needs to be inserted once and can never be changed again, thus avoiding any tampering or human error when information is shared across the network of the parties that need to be there. to access.
As for its use on HS2, Marx explained, “It was really about what the case with value is – what does blockchain do better than other technologies worth it to put it? in place ? For us, it was trust, transparency and accountability.
“Trust because you are creating a unique version of the truth that everyone shares, and it is verified.
“Transparency, because you can share information on this network to encourage collaboration
“And finally accountability, because you can follow the business process from start to finish with clear, unmistakable records of what was done and when. “
Marx described three key uses of blockchain in HS2 – and potentially all construction projects going forward.
The first is to identify points in the supply chain where there are bottlenecks – where information or processes are stuck. This helps identify trends that could be eradicated to improve efficiency.
Second, he explained how having complete confidence in shared data means they can start using smart contracts and payment automation. For example, with the blockchain embedded in the technology, data will be created about when entrepreneurs arrive on site and leave with undeniable precision, meaning that payments can be directly automated – no timesheet or admin. ‘is necessary. HS2 reports that the use of the blockchain reduced the total number of business processes for timesheets and invoices from 24 to 11.
The third main use of blockchain is material origin. Every item, even down to a small bolt, will have its information inserted into the blockchain, and from that point on, a record is kept on when and where it was made, where it is transported, where it is included in it. assembly, the transport of this assembly to the construction site, and finally its location in the final structure.
Material-sourced data will be particularly useful as we move towards a larger implementation of digital twins, as the information for every little piece of a building will have solid data behind it that can be reflected in the digital version. . The original data, including how it was manufactured and where it was transported, will also give much more detailed results when calculating carbon emissions for a given building.
HS2 started using the blockchain with one of its plant vendors, Lynch. By making sure everyone in this section of the supply chain uses the same secure information, they were able to remove bottlenecks and start using more automated processes.
Davies explained, “We really innovated and connected the supply chain to prove this concept; working with finance teams and working with sales teams, as the gap between the two is sometimes not fully understood.
This increased the speed of payments by 50-60%. He added: “What it has been like over the life of [HS2’s] The main works of sections 1 and 2 of SES – thus Euston until the M25 – represented quite considerable savings. “
They are now planning to expand this much further.
Mitchell, speaking on behalf of HS2 Ltd, said: “As a customer we are not just looking for the benefit of being a proof of concept or being isolated on only one part of the route. We are now looking to expand the learning we have learned from this particular case and take it away.
“So we’re going to lift throughout the first phase of the program, and then also start the dialogue with the second phase of the program, where that should become more the norm.
“But that’s just one use case against a lot.”
Marx underlined this by explaining: “What we hope to do in the next few years is to expand its characteristics and functions.
“It can be applied more broadly to other areas of timesheets and invoicing, while looking at the rest of the process to evolve into one-stop shopping, basically, for how you get plants. “
He also said that over time it would expand to other processes, such as different types of sourcing or how to capture carbon.
Marx also wanted to stress that this will not only have positive impacts for HS2, but for all layers of the supply chain. “Paying for the supplies faster has benefits not only for the cost of doing it, but also for their costs in terms of trade finance and all the other things that go with it,” he said. .
In conclusion, he wanted to highlight the potential of blockchain to bring a new level of standardization to the construction industry. “What this really means to us is moving away from a project, a single program, an organization’s technology implementation style, and a much more ecosystem-based approach. “, did he declare.
“We can start to standardize the way we do things, especially in these more administrative tasks, which manufacturing has done so well. [to drive] their productivity forward, ”he said. “If we can build a fair and equitable ecosystem for everyone, there’s no reason we can’t take a similar approach.
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HS2 Ltd has successfully implemented blockchain in a section of its supply pipeline to increase trust, efficiency and value. He hopes to expand his use of the technology to broader supply chain processes.
HS2 Ltd Chief Innovation Officer Howard Mitchell spoke at RCE‘s TechFest on December 2, alongside Costain’s head of strategic growth, Charlie Davies, and head of blockchain for Deloitte’s real asset consulting practice, Alexander Marx. Together, they explained the objectives and results of the blockchain trial conducted by the joint venture Skanska, Costain, Strabag, alongside Deloitte, on High Speed 2 (HS2).
Blockchain is a form of cryptography that connects blocks of information in a secure chain, where each piece of information is given a specific time stamp and transaction data that is virtually impossible to hack or change. This means that all data entered into the blockchain only needs to be inserted once and can never be changed again, thus avoiding any tampering or human error when information is shared across the network of the parties that need to be there. to access.
As for its use on HS2, Marx explained, “It was really about what the case with value is – what does blockchain do better than other technologies worth it to put it? in place ? For us, it was trust, transparency and accountability.
“Trust because you are creating a unique version of the truth that everyone shares, and it is verified.
“Transparency, because you can share information on this network to encourage collaboration
“And finally accountability, because you can follow the business process from start to finish with clear, unmistakable records of what was done and when. “
Marx described three key uses of blockchain in HS2 – and potentially all construction projects going forward.
The first is to identify points in the supply chain where there are bottlenecks – where information or processes are stuck. This helps identify trends that could be eradicated to improve efficiency.
Second, he explained how having complete confidence in shared data means they can start using smart contracts and payment automation. For example, with the blockchain embedded in the technology, data will be created about when entrepreneurs arrive on site and leave with undeniable precision, meaning that payments can be directly automated – no timesheet or admin. ‘is necessary. HS2 reports that the use of the blockchain reduced the total number of business processes for timesheets and invoices from 24 to 11.
The third main use of blockchain is material origin. Every item, even down to a small bolt, will have its information inserted into the blockchain, and from that point on, a record is kept on when and where it was made, where it is transported, where it is included in it. assembly, the transport of this assembly to the construction site, and finally its location in the final structure.
Material-sourced data will be particularly useful as we move towards a larger implementation of digital twins, as the information for every little piece of a building will have solid data behind it that can be reflected in the digital version. . The original data, including how it was manufactured and where it was transported, will also give much more detailed results when calculating carbon emissions for a given building.
HS2 started using the blockchain with one of its plant vendors, Lynch. By making sure everyone in this section of the supply chain uses the same secure information, they were able to remove bottlenecks and start using more automated processes.
Davies explained, “We really innovated and connected the supply chain to prove this concept; working with finance teams and working with sales teams, as the gap between the two is sometimes not fully understood.
This increased the speed of payments by 50-60%. He added: “What it has been like over the life of [HS2’s] The main works of sections 1 and 2 of SES – thus Euston until the M25 – represented quite considerable savings. “
They are now planning to expand this much further.
Mitchell, speaking on behalf of HS2 Ltd, said: “As a customer we are not just looking for the benefit of being a proof of concept or being isolated on only one part of the route. We are now looking to expand the learning we have learned from this particular case and take it away.
“So we’re going to lift throughout the first phase of the program, and then also start the dialogue with the second phase of the program, where that should become more the norm.
“But that’s just one use case against a lot.”
Marx underlined this by explaining: “What we hope to do in the next few years is to expand its characteristics and functions.
“It can be applied more broadly to other areas of timesheets and invoicing, while looking at the rest of the process to evolve into one-stop shopping, basically, for how you get plants. “
He also said that over time it would expand to other processes, such as different types of sourcing or how to capture carbon.
Marx also wanted to stress that this will not only have positive impacts for HS2, but for all layers of the supply chain. “Paying for the supplies faster has benefits not only for the cost of doing it, but also for their costs in terms of trade finance and all the other things that go with it,” he said. .
In conclusion, he wanted to highlight the potential of blockchain to bring a new level of standardization to the construction industry. “What this really means to us is moving away from a project, a single program, an organization’s technology implementation style, and a much more ecosystem-based approach. “, did he declare.
“We can start to standardize the way we do things, especially in these more administrative tasks, which manufacturing has done so well. [to drive] their productivity forward, ”he said. “If we can build a fair and equitable ecosystem for everyone, there’s no reason we can’t take a similar approach.
Do you like what you read? To receive New Civil Engineer daily and weekly newsletters, click here.