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CASE STUDY 2 INNOVATION INSIGHTS Author: Shelley Sjerven, Program Manager, SCM


SCAN Trusted Factory Blockchain Program


The Supplier Compliance Audit Network (SCAN) is an association of importers that formed to eliminate foreign factory audit fatigue associated with Supply Chain Security importing criteria within the US Customs Trade Partnership Against Terrorism program (CTPAT).


Shelley Sjerven


SCAN Importing members have a combined annual sale of $1.25 trillion USD and source from factories around the world. More than 50% of these factories are shared by multiple SCAN members which prior to SCAN would result


in a factory having regular audits by independent importers. Today, SCAN has more than 18,000 factories in the SCAN database and the program’s popularity has grown internationally. Several hundred audits are conducted monthly; factories are assigned a SCAN identification


code and any CTPAT criteria gaps are met with assigned corrective actions. Due to the success of this program, some factories are making false claims that they are SCAN certified and have either created a new or copied a legitimate SCAN Factory ID number. Blockchain technology is now being incorporated into the Trusted Factory Program to ensure authenticity of a factory’s certification and factory credentials. Onsite audits need to be trusted and validated for accuracy and completeness. Blockchain helps to ensure that the data


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