Orixe uses blockchain technology to improve transparency and accountability in supply chains. “I’ve been blown away by all the dirty tricks and dark spots in supply chains – from counterfeiting and corruption to hidden pollution and modern slavery. I founded Orixe to be an active force behind a paradigm shift to ethical, sustainable business,” says Gunilla Grimsgaard, Founder and CEO of Orixe.
Dark spots in supply chains cause human suffering and environmental damage. Modern slavery, for example, generates USD 1.5 billion in profits each year. Supply chain pollution, from toxic waste to deforestation, accounts for 90 per cent of companies’ environmental impact. The global cost of corruption amounts to 5 per cent of world gross domestic product, and counterfeiting, estimated at 3.3 per cent of world trade, endangers lives with fake products such as medicines and aviation parts.
“Companies need to have more control over their supply chains; otherwise, they risk a loss of reputation and legal consequences, in addition to causing harm to people and the planet,” says Grimsgaard.
Orixe is a browser-based, SaaS platform that gives companies control over their supply chains. “Our solution ensures that buyers can hold their suppliers to the highest quality and ethical standards,” says Grimsgaard.
The platform sheds light on suppliers’ production and procurement processes. This includes automated, simplified auditing, and secure, efficient tracking of components and goods.
“Companies can also score themselves on the Ten Principles of the UN Global Compact and flow these down through the entire supply chain. Compliance codes of conduct can be flowed down as well,” says Grimsgaard.
Orixe combines database and blockchain technology, making the platform immutable, user friendly and, unlike other blockchain solutions, highly energy efficient.
The solution comprises three separate services that can be mixed and matched: Audit, Trace and Sustainability. “We have designed Orixe for a soft start. Companies can choose one area to begin with and then add on from there. It’s an inexpensive way to get started,” she explains.
Orixe helps buyers and suppliers to cooperate on sustainability.
“Sustainability is all about adherence to the UN Sustainable Development Goals. Companies need to prove that their activities support human rights and environmental health. Our solution lets them invite suppliers into the Orixe network so they can show this too,” says Grimsgaard.
In addition, Orixe helps to ensure compliance with supply chain regulations and develop trust between buyers and suppliers. The solution is available to all, from large international companies to small-scale suppliers around the world.
“The Orixe platform is simple and cost-efficient,” says Grimsgaard. “Companies lower down in the supply chain don’t have the money, know-how or skills to use the advanced, costly tech solutions on the market today. We are disrupting this – ‘democratising’ the process, if you will.”
Companies are seeking to mitigate the problem of lost revenue from unethical suppliers. “SMEs in some industries spend USD 14 000 each year to avoid counterfeit goods and other procurement problems. As such, we have seen a willingness to pay for solutions that would lower these costs,” says Grimsgaard.
Moreover, companies must demonstrate compliance with other and stricter regulations, such as Germany’s Supply Chain Due Diligence Act, the EU Taxonomy, Norway’s Transparency Act or the UK’s Modern Slavery Act.
Orixe’s target customers are aviation, defence and electronics companies. After successful pilots in Norway and Sri Lanka, the solution is now on the market with an initial focus on Europe.
“I haven’t found anyone doing exactly what we do. Our ultimate goal is to make it worldwide. We have a social agenda, and we want to make a positive impact,” concludes Grimsgaard.
Blockchain solution that holds suppliers to high ethical standards
Increases transparency and accountability in supply chains
Improves companies’ overall sustainability and environmental impact