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Technology

The Blockchain Solution in the Food Industry Supply Chain

October 22, 2019


A Blockchain Technology Solution 

The use of Blockchain technology is still relatively new in the world of the supply chain, but it has been used successfully with great results. Its global scale potential wipes away barriers that face many companies in their respective industries. A blockchain technology solution may be the key to solving problems within your company’s supply chain. 

 

What is Blockchain?

Essentially, blockchain is a chain of digital blocks that act like an online ledger. Blockchain ensures businesses always have reliable and updated data at any given time. This allows many benefits such as increased efficiency within your operation. Blockchain’s setup also creates information security because it uses the consensus principle. This meaning, any party may add information to the chain, but it must be verified by another party to become a permanent block. 

 

How Does Blockchain Apply to the Food Industry Supply Chain?

The Problem 

Almost 1 in every 10 people according to the World Health Organization, become sick from contaminated food each year. In fact, it is estimated that a third of all food produced in the world is wasted every year. That totals almost 1 trillion dollars! Food recalls are just one cause of this global problem. 

The supply chain in the food industry is struggling. The problem is companies are siloed by utilizing their own separate processes and data documentation to keep track of their product. This means data about food production, shipping, storage, sales etc. are recorded independently. The blockchain bridges these independents! 

Blockchain Technology Solutions

Large companies like Walmart are pioneering blockchain technology solutions. Walmart uses a blockchain technology solution with its suppliers to improve end-to-end tracing.  More specifically, they use it to control recalls on food products. They have the ability to follow food and keep updated throughout the food’s movement in the supply chain.

The suppliers create a block of information about harvest time, expiry dates, and more. Walmart tracks the expired food and immediately stops the food supply from getting to its customers. This saves extreme amounts of time, resources and expenses. For example, when Walmart implemented blockchain for tracking mangoes, their tracking time went from 7 days to 2.2 seconds! The blockchain technology solution produced real results in real-time at an incredibly fast pace. 

In Walmart’s case, they used a blockchain framework implementation system called Hyperledger Fabric, just one of the many blockchain implementation systems. In fact, Walmart saw such an impact from their use of blockchain they recommended it to other large companies like Nestle. 

 

Summary 

Blockchain technology is on the rise and can be implemented for glowing results in a businesses’ supply chain. Companies struggle with a lack of transparency throughout their supply chain network. Blockchain technology solutions allow companies (suppliers, producers and competitors alike) to safely share and have access to real-time product information, in a matter of seconds.  

Learn about more ways to access real-time product information with software technology customized specifically for your company’s needs. 

 

Want to learn more about Inventory Management Solutions? See How Clear Spider Can Help. Schedule a Demo today!


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