The SCALES project is designing and implementing a digital supply chain architecture using distributed ledger technologies to enable value-added services for enterprises and public administrations. The project is coordinated by AgID and involves Politecnico di Milano DIG, UNINFO, InfoCert and Consorzio DAFNE. The architecture will adopt a multi-chain approach and focus on electronic invoicing and procurement processes while ensuring privacy and compliance with GDPR. A healthcare procurement use case will demonstrate value-added services for the sector.

1. SCALES: Supply Chain Architecture Leading to
Enhanced Services
Fabio Massimi
9 December 2020 - EC DG Connect
Roundtable: ICT Verticals and Horizontals for Blockchain Standardisation: Digital Economy, SME's, Industry and Supply chains

2. • SCALES - 2018-EN-IA-0053 - is a project funded by the 2018 eInvoicing call of the
Connecting Europe Facility programme.
• AgID coordinates a mixed public/private consortium formed by: Politecnico di
Milano DIG, UNINFO, InfoCert and Consorzio DAFNE.
• The objective of SCALES is the design and implementation of a digital supply
chain architecture enabling value-added services for enterprises and public
administrations.
• SCALES architecture adopts Distributed Ledger (DLT) technologies and is
designed in multi-chain view (EBSI).
• Strong commitment to personal data protection (GDPR).
• Focus on procurement post-award and in particular on electronic invoicing in a
transnational view based on EN 16931.
• Vertical use case (VAS) on healthcare procurement.
SCALES project

3. Architectural Principles
Instant Finality
Since SCALES aims to build a more efficient and
resilient architecture in order to manage large
volumes of data or supporting the implementation
of enhanced invoicing and eProcurement services,
Instant finality is necessary.
Infrastructure independent
Possibility to deploy the system in on-
premise & cloud mode, to respond to
heterogeneous technical and compliance
requirements.
Privacy
Being SCALES a solution based on DLT, privacy of
information and correct sharing of data among
different network nodes types is a critical
constraint.
Identity of participant nodes
in order to comply with privacy regulation
and establish the correct accountability of
transactions on data, the Scales node shall
be run by legally identified parties.
Software Licensing
Build a software stack based on Open Source
components, leaving to the specific instance
provider the freedom to upgrade community /
open source version to commercial edition,
preserving backward compatibility of software
Data ecosystem
SCALES implements the Once only principle
by creating a data ecosystem that facilitates
the relationship between customers,
suppliers, supervisory authorities and the
development of value-added services.

4. SCALES: general approach
SCALES decentralized network approach in brief:
- The object is created on a specific node of the DLT
network and it is visible only to that node and all the
counterparty nodes involved in a workflow
- The Workflow is distributed among different nodes,
where each node participate via signed transaction,
once it has completed its own task
- The only nodes that holds the data is the one where
the data has been uploaded to. All the other nodes,
involved in the workflow, participate by getting the
data form the source node, doing some work on it and
signing back their own transaction in order to let the
workflow progress.
- The blue nodes are involved on a need-to-know
basis: one is the source node, where the data is
uploaded, the other is asked to participate to the
workflow.
- Some nodes are always involved. The Competent
Authority node checks the correctness of data. The
Notary node signs the last step of the workflow, in
order to avoid double spending of it (i.e. repeating the
workflow on the same instance of data)
SCALES project - Supply Chain Architecture Leading to Enhanced Services – Partners: AgID, POLIMI DIG, UNINFO, Infocert, Consorzio Dafne
DLT
Node
DLT
Node
Competent
Authority
Notary
Workflow
transactions
Consensus
transactions
Validation
transactions
Digital Asset
Object
Local
Application /
businessl
Logic
minting
org1 org2
DLT network
Federation layer (openID Connect IdP and SP)
Observers Oracles
Local
Application /
businessl
Logic

5. SCALES : eInvoicing logical architecture
Components:
- End entities: the legal persons that act as supplier
and buyer in the purchase-to-pay process
supported by Scales.
- Hub are intermediaries between End entities and
Scales network.
- The Scales Node is in charge of:
- Offer a data integration layer allowing Hubs to
create digital object (i.e. invoices, order, etc) in
the DLT
- Offer a VAS partner set of APIS in order to allow
to propose a service to the involved parties
- Offer mapping services between formats
- Implement persistence layer of all the data and
metadata of objects
- Implement the Corda R3 flows
- Scales Common Services are in charge of: Provide
x.509 Pki credentials to Scales node, i.e. a legal
identity; Notarize transaction; Map IPs onto Scales
node names, in order to let the Corda R3 flows
happen; provide Federated identity service to
External parties; provide dispatching service
Direct Transaction
Indirect Transaction
End entities
End entities End entities
End entities
SCALES project - Supply Chain Architecture Leading to Enhanced Services – Partners: AgID, POLIMI DIG, UNINFO, Infocert, Consorzio Dafne

6. SCALES: VAS for healthcare sector
SCALES partners developed three
classes of Value-added services
exploiting the potential of SCALES
architecture and integrating national
monitoring systems such as SDI
(National gateway for eInvoicing),
NSO (National gateway for
eOrdering) and PCC (Public
Commercial Credit Platform). In brief:
- VAS for Public Administrations:
eInvoicing Reconciliation (invoice,
payment and credit).
- VAS for Healthcare Wholesalers:
eInvocing Reconciliation (invoice,
payment and credit).
- VAS for National Health System
Buyers: Dashboard for expenditure
planning and contract monitoring.
Persistence
Layer R3 Node
EISII Mapper
RPC API (Data Integration Layer)
R3 Notary
Pool
R3 Doorman
R3 Network
Map service
ID provider
Scales node 1
Common service nodes
Persistence
Layer R3 Node
EISII Mapper
API (Data Integration Layer)
Scales node 2
Infocert LI
HUB
(other sector)
Current PA/PR
channel
Scales channel
Scales Flows
Corda Network Support Services
Vas API (OIDC RP) Vas API (OIDC RP)
Dispatchers
CONDAFNE SIOPE+
PCC
Current PA channel
Data integrtion Services
NSO
SDI
NSO
BDNCP
Public Healthcare Sector
SELLER
BUYER
e-invoicing reconciliation

7. SCALES: project plan
SEP
19
OCT
19
NOV
19
DEC
19
JAN
20
FEB
20
M
AR
20
APR
20
M
AY
20
JUN
20
JUL 20
AUG
20
SEP
20
OCT
20
NOV
20
Analysis
Design
Implementation
Service Framework
Data Integration
Healthcare Services
Testing & Validation
Dissemination
SEP - NOV
NOV - DEC
DEC - MAY
SEP - DCC
DEC – JUN
DeC – JUL
JUN - OCT
JUN - NOV
Requirements analysis and comparative evaluation of available technologies.
Solution design
Solution development.
Survey on enterprises' appetite for VASs – Designing the new VAS framework
Data integration layer (Service hub)
Healthcare supply chain VAS
Testing and validation
Dissemination

8. New Service Framework
POLIMI carried out a survey of value-
added services provided by existing
supply chain ecosystems. Case studies
were analysed to identify the criticality
of existing services and the appetite of
companies for new services.
Software
The building blocks of the SCALES
architecture developed by Infocert will
be published on Github under EUPL
licence to facilitate their adoption and
reuse by public administrations and
companies.
https://github.com/AgID/SCALES
Solution design
Solution design defines the architecture
of the SCALES network, considering the
results of the state of the art analysis on
DLT and BC technologies and the
requirements of the Italian eInvoicing
infrastructure (B2B, B2G and G2B) and
end-to-end eProcurement systems.
National Guidelines on eProc
AgID led the feasibility study for the
adoption of the SCALES architecture by
national eProcurement systems including
SDI. AgID will update the AgID Circular
3/2016 "Guidelines for Public
eProcurement Systems" in order to
support the adoption of DLT and BC based
architectures by national public
procurement systems.
VAS for health sector
Consorzio DAFNE has developed value-
added services addressed to the National
Health System entities and suppliers
(pharmaceutical companies, distributors,
depositories) exploiting the potential of
SCALES and integrating national
monitoring systems such as SDI, NSO and
PCC.
Report on BC & DLT
POLIMI carried out a research on BC
and DLT technologies suitable for the
public supply chain and the national
e-invoicing process. The analysis
addressed the DLT-based architecture
for public procurement post-award.
Nov 19
Dec 19
Jan 20
Feb 20
May 20
Jul 20
SCALES: main deliverables
Whitepaper
UNINFO issued a Whitepaper with
the results of the project and in-
depth analysis of GDPR compliance
and SCALES' contribution to
international eInvoicing, blockchain
and DLT initiatives.
Nov 20

9. Thank you!
Fabio Massimi
fabio.massimi@agid.gov.it
9 December 2020 - EC DG Connect
Roundtable: ICT Verticals and Horizontals for Blockchain Standardisation: Digital Economy, SME's, Industry and Supply chains