Since the inception of Ambrosus there has been a significant amount of demand from client companies wishing to trace their products on a public blockchain and verify their quality using sensors. While these companies come from all over the world, and differ in terms of which products they wish to trace, there are similar patterns in how the various Ambrosus business developers go about partnering with such companies. Without going into any of the non-disclosure agreements that have been put in place, this article will breakdown the exact process of how Ambrosus engages with the various client companies that it interacts with. Importantly, this process can be broken down into four main stages:

Stage 1 = Initial Contact and Information Exchange

Stage 2 = Negotiation and Solution Application

Stage 3 = Pilot Project or Proof of Concept

Stage 4 = Mass Adoption and Implementation

Before discussing the hidden nuances within this process, a brief sketch should be given concerning the type of companies that Ambrosus has been working with.

Client Companies:

The “supply chain” is an umbrella concept that can refer to hundreds of different processes in the global economy. While the Ambrosus solution is, in principle, applicable to anything that can be traced or monitored with a sensor, gel or chip, the specific focus of Ambrosus to date has been the food, pharmaceutical and commodity supply chains. As such from the very beginning, Ambrosus has tailor made their focus and technology (IoT sensors) so as to be directly applicable to food and pharmaceutical companies in ways that are truly innovative and unique.

In terms of the magnitude of these supply chains, in the EU alone, the food supply chain involves 11 million farms, 300,000 food processing enterprises, and 2.8 million food distributor and food service enterprises [ec.europea]. Meanwhile, the global pharmaceutical industry has witnessed growth in previous years, and now sits at a total value of 1.1 trillion dollars [statista]. Finally, the commodities market, comprised of hundreds of different products, has also seen an increase in demand in recent years [worldbank]. Overall, these three primary markets are the markets of the vast majority of the client companies that Ambrosus works with. Unconfined geographically, Ambrosus business developers frequently cross the globe seeking to disrupt these industries.

In terms of the size of companies that Ambrosus works with, Ambrosus is currently working with large and medium sized enterprises, of which 1/3 are large enterprises, and 2/3 are medium sized. These companies vary in terms of the area of the supply chain that they operate within: some control an entire supply chain, others are merely responsible for transportation or quality assurance. Either way, the malleability of the Ambrosus solution allows it to be applied to all areas of the supply chain, meaning anywhere from farm to fork. Below, a breakdown of exactly how the Ambrosus team goes about working with such companies is explained.

Stage 1: Initial Contact and Information Exchange

The first stage of cooperation between Ambrosus and certain client companies involves making contact and sharing information about how the Ambrosus solution could fit together with the company’s needs. Contact with the Ambrosus team originates in a variety of ways: either Ambrosus team members use their networks to reach out to the corporate players to pitch the solution; or a company who is already looking for a solution discovers Ambrosus online and sends an initial correspondence via email based on what they have seen from the various online communities and the website; and finally, the team attends, exhibits or presents at a variety of industrial events and workshops where they meet potential clients and partners.

In the short year that Ambrosus has been operational, it is estimated that the company has been represented at 100+ events and conferences. These conferences allow for prospective companies to put a human face to who is behind the Ambrosus solution, get insights into the team’s expertise in blockchain and IoT and to get an initial idea about how Ambrosus could transform that company’s supply chain.

After contact has been initiated, a non-disclosure agreement (NDA) is signed before further information is communicated between Ambrosus and its client company. As such, the NDA merely functions as a means of beginning a discussion — it is no real indicator of how well the Ambrosus solution will fit with the client company’s needs. With an NDA signed, Ambrosus and the client company in question then go more in depth in discussing what the needs of the client company are, and the various avenues where Ambrosus may be applicable. For companies who see the value of using a public blockchain to trace their products, negotiations continue into Stage 2.

The most valuable insight to gather from Stage 1 is the fact that due to the sheer size of the food and pharmaceutical industries, Ambrosus will rarely if ever have a shortage of prospective clients, conferences, or networking opportunities to showcase their product around the world.

Stage 2: Negotiation and Solution Application

After interest has been expressed by the client company, and it has become clear that Ambrosus is applicable to the client company’s supply chain process, a professional negotiation then takes place. More specifically, this will involve one or several members of the Ambrosus team travelling to the client company in question to hold high level discussions on where exactly the Ambrosus solution could fit into the client company’s supply chain. A timeframe is created for how the client company wishes to test out the Ambrosus solution, and an agreement is made concerning the adoption of the Ambrosus solution after successful testing.

Crucially, it is in this stage when the core technological solution that Ambrosus provides, is dissected and applied to the client company’s area of interest. The most difficult aspect of this communication concerns effectively communicating the importance of blockchain technology; the possibilities of the Ambrosus solution and the benefits of using a public blockchain to trace products throughout the supply chain.

The most valuable insight to gather from Stage 2 is that due to the youth of the blockchain industry, special care must be taken in communicating to clients exactly why Ambrosus is valuable. Importantly, according to CEO Angel Versetti, this is one of Ambrosus’ strengths:

“Usually companies that we work with want to see real proof of value and benefits that a blockchain solution can bring to their business, ideally quantifiable (i.e. this amount of profits generated or that amount of costs reduced), before they commit to wider integration of blockchain technologies into their business operations. This is why we work continuously with companies and educate their leadership about how to use the networks. We recently had one of the largest companies in the world who works with Ambrosus commend our team on that aspect. They said they prefer to work with our team because we deliver and we build things that make sense.” — Angel Versetti (AMA)

If there is a clear cut fit between the Ambrosus solution and the client company in question, negotiations progress to Stage 3.

Stage 3: Proof of Concept / Pilot Project

Once the specific problem of the client company has been clearly discussed, a ‘Proof of Concept’ or pilot project is designed as a way of proving or testing the functionality of the Ambrosus Solution. During this stage of the process a plan is designed for how Ambrosus could apply their solution to a small portion of the company’s supply chain or to an individual product. After resolving the theoretical difficulties, the company selects the sensors they wish to use to trace the products in question, and connects their supply chain interface to AMB-NET. Ambrosus then fits the specified sensors to the area of the supply chain that needs to be monitored and begins recording data on the specified area of the supply chain. If necessary, Ambrosus develops additional toolings, dashboards or applications that make interaction with AMB-NET easier for the corporate stakeholders.

Importantly, this stage of the process can vary in terms of how long it takes to produce and implement a pilot project, as multiple factors must be taken into account:

when the client company decides where to apply Ambrosus as well as which sensors to use;

when a clear proof-of-concept can be designed and agreed upon by both parties;

when both the client company and Ambrosus have the approval of all decision-makers to onboard the client company to AMB-NET to run the pilot;

when the sensors can actually be connected to the specified area of the supply chain, and the actual data transmission occurs.

As such this area of cooperation normally takes between 6 months and 1 year. If successful however, the final stage of the negotiation then ensues.

The most valuable insight to gather from Stage 3 of the process, is that Ambrosus proves the value of their product before companies decide to adopt their solution. In this sense the company has a clear picture — prior to adoption — of exactly what they will get when they adopt Ambrosus.

Stage 4: Mass Adoption and Implementation

The average proof of concept or pilot project will only track or trace 0.01% of a company’s supply chain. If successful however, companies that have tested the Ambrosus solution can then implement the solution in the entirety of their supply chains. In this sense, a proof of concept is the most important pathway to an industrial grade supply chain solution. It gives client companies the opportunity to decide whether the Ambrosus solution is revolutionary to the point that it should be included in their entire supply chain process.

Importantly, once Ambrosus has been selected as the end-to-end means of tracing the industrial grade supply chain in question, mass sensors could then be produced by a supplier, and the entire supply chain will have to be connected to the Ambrosus network through the Hermes node. From a broader perspective, the patience and endurance of correctly introducing a client company to Ambrosus’ comprehensive solution serves as a sustainable foundation for the mass implementation of Ambrosus’s solution into the company’s entire supply chain.

The Result:

For all of the time and trial of working with the client company, the result is on par with one of the key goals of Ambrosus: long-term sustainable partnerships with corporate stakeholders. Ultimately, when a company sees the potential of using the Ambrosus Network, they may not only sign up their entire supply chain, but they can also sign up to use Ambrosus for the long-term. A sustainable solution is thus created that not only helps enterprises optimize their data, but it also uses the revolutionary potential of blockchain technology to bring about an unprecedented level of transparency to consumers and regulatory authorities alike. Altogether, both the client company and Ambrosus benefit while also increasing transparency, and consumer trust in brand. Carefully and professionally, the global supply chain can become what it has never been before: benefiting businesses, consumers, and all that goes in between with the unique Ambrosus solution.