# Resolve supplier disputes on a shared data set

> US home improvement retailer The Home Depot works with IBM on a distributed ledger that captures shipping, goods receipt and acceptance data from both retailer and supplier in real time. Because both sides see the same data at the same moment, the weeks- or months-long reconciliation of separate records over quantity and condition discrepancies disappears. According to IBM, the number of disputes fell by 65 percent and resolution time dropped from weeks or months to a few days.

**Sector:** Tertiary sector · **Industry:** Retail · **Organisation:** The Home Depot, Inc. · **Maturity level:** Production

Canonical URL: https://www.sapientblock.com/en/use-cases/the-home-depot-streitfaelle-lieferanten-gemeinsamer-datenbasis-klaeren

## Documentation status

- **Project status:** Production
- **Evidence:** Evidence medium
- **Editorial review:** pending

## Description

The US hardware chain The Home Depot uses a distributed ledger together with IBM to resolve disputes with suppliers on a shared data basis. Between goods receipt at the retailer and supplier invoicing, quantity and condition discrepancies regularly arise that can drag on for weeks or months because both sides keep separate records. In the shared ledger, retailer and supplier see the same shipping, goods receipt and acceptance data at the same time, eliminating the cause of most disputes.

The Home Depot operates the solution on the IBM Blockchain Platform and continuously integrates participating suppliers. The ledger includes shipping, goods receipt and acceptance data from both sides, so both have the same view of a delivery instead of having to reconcile conflicting documents later. All data, detected discrepancies and resulting decisions are immutably recorded in the distributed ledger, forming a complete audit trail. According to IBM, this results in a 65 percent reduction in disputes, with remaining cases resolved in days rather than weeks or months. IBM also describes the approach as a foundation for further procure-to-pay functions: suppliers can view inventory data in real time, returns can be tracked, and carriers can be connected to speed up freight claims. The real benefit lies less in the technology than in the changed relationship with suppliers, as disputes no longer arise from conflicting data.

## Benefits

- Significantly reduced processing effort in accounting and purchasing on both sides.
- More stable supplier relationships because disputes no longer arise from data discrepancies.
- The number of disputes fell by 65 percent according to IBM.
- Resolution time shortened from weeks or months to a few days.
- All data, discrepancies and decisions form an immutable audit trail.
- The solution serves as a basis for returns, inventory visibility and freight claims.
- Less reconstruction work from emails and documents.
- Clear decision basis for quantity and condition discrepancies.

## Challenges

- Smaller suppliers need support with technical integration.
- The benefit grows only with the number of connected suppliers.
- The inventory management systems of both parties must be connected to the shared ledger.
- Retailer and supplier must agree bindingly on what counts as a discrepancy.
- Goods receipt must be recorded more promptly and carefully because data is immediately visible to both sides.

## Technology foundation

The solution is based on the IBM Blockchain Platform and thus on Hyperledger Fabric as a permissioned ledger between retailer and supplier. A distributed ledger is central here because both contracting parties must maintain the same dataset without either being able to control or subsequently alter the other's records.

## Sources

- [Faster invoicing resolutions build stronger relationships](https://ibm.com/case-studies/the-home-depot)
- [Blockchain for invoice reconciliation and dispute resolution](https://www.ibm.com/new/product-blog/blockchain-for-invoice-reconciliation-and-dispute-resolution)