Blockchain technology has proven to be an incredible tool for the supply chain and logistics industry. This tech can easily provide transparency and transform the entire industry greatly improving processes. The way supply chains were created required for them to be broken in several ways, filled with a lot of complexity in how the whole process was built. Globalization and manufacturing have made things even more complicated, making it very difficult for customers to verify the origin and authenticity of the products they purchase.
Blockchain tech is essentially a distributed ledger, where many applications can be used for a specific purpose. Since every transaction is recorded on blocks and across multiple copies of the ledger distributed among many computers, it is extremely transparent. Every block links to the one before it and after it, making it highly secure and is not governed by a central authority, making it more efficient and scalable. All the benefits blockchain provide could easily increase efficiency and transparency of any supply chain; which explains why so many companies are showing interest in developing applications based on blockchain.
The latest addition to the list is Nestlé. The Swiss company recently revealed its plans to begin tracking its products through a blockchain-based supply chain platform. In collaboration with OpenSC, Nestlé will provide customers with a platform that will allow for customers everywhere to track food back to the farm. The major food and beverage company will pilot the open blockchain technology in the months to come.
At first, the pilot will trace milk from farms and producers in New Zealand to Nestlé factories and warehouses in the Middle East. The technology will be tested using palm oil sourced in the Americas. According to Magdi Batato, Executive Vice President and Head of Operations at Nestlé:
We want our consumers to make an informed decision on their choice of products – to choose products produced responsibly. Open blockchain technology might allow us to share reliable information with consumers in an accessible way.
Additionally, Benjamin Ware, Global Head of Responsible Sourcing of Nestlé also commented saying:
This open blockchain technology will allow anyone, anywhere in the world to assess our responsible sourcing facts and figures… We believe it is another important step towards the full disclosure of our supply chains announced by Nestlé in February this year, raising the bar for transparency and responsible production globally.