The end-to-end tracking that blockchain provides could be particularly beneficial for the clothing supply chain. 8 In fact, Carrefour tags certain products, such as tomatoes, oranges, fresh micro-filtered milk, and Rocamadour cheese, with QR codes that allow consumers to learn where their food originated by taking a picture of the QR code with their smartphones. 7Ĭarrefour credits blockchain with sales increases because blockchain reassures customers of the quality of items they buy and assists them with avoiding products with genetically modified organisms, antibiotics or pesticides. In 2019, Carrefour reported that its blockchain-tracked chicken outperformed other chicken in sales growth. European grocery chain, Carrefour, uses IBM Food Trust to trace chickens from farm to grocery store. 6 IBM Food Trust aims to improve food safety and freshness, identify supply chain inefficiencies, minimize waste, improve brand reputation, and ultimately add value to a company’s bottom line. IBM Food Trust is an example of a hybrid blockchain solution that allows supply chain partners to securely share tracking information related to perishable food supplies. As a result, some companies turn to blockchain to trace products in order to ensure end users receive a responsibly-sourced product with an ample shelf life. The journey of a perishable product from the country of origin to the final destination can be long and difficult to track. As a result, in its supply agreements with retailers and distributors, a manufacturer may want to address the scope of recall expenses and chargebacks differently, as opposed to recalls without the use of blockchain where the parties anticipate a lack of clarity around which batches of products to recall. 5Īs the use of blockchain becomes more prevalent, retailers will increase their ability to determine exactly which batch of products to recall when an issue arises. Customs and Border Protection to pilot a program to track imported foods. 3 In fact, Walmart tracks over 500 food items using blockchain, and, in 2020, was able to provide FDA investigators with detailed information on the original source of a potential contamination within an hour, a stunning reduction from the seven days that this process used to take. Today, Walmart can track a head of lettuce from a store all the way back to the farm where the lettuce was cultivated by the farmer in just seconds. 2 Walmart invited its suppliers to ditch the paper trail and join Walmart’s blockchain program. 1 Walmart describes the food supply industry as one that frequently employs a paper-based tracking system for supply chain, which can lead to delays and dead-ends in tracking contaminated food. In response to a series of devastating E.coli outbreaks in romaine lettuce as well as salmonella-laced eggs and breakfast cereal in 2018, Walmart decided to leverage blockchain to increase the safety of its food supply. Companies that attain top recall accuracy and speed by implementing investigation improvements can reduce recall costs, loss of profits, and reputational damage, and in the case of food recalls, save lives. Some of the keys to successfully stopping outbreaks of foodborne illnesses through food traceability protocols include the accuracy and speed of obtaining tracking information and the inability of third parties to manipulate that tracking information. The most promising applications in the food industry involve conducting product recalls and ensuring consumer satisfaction for perishable products. Supply chain traceability is crucial in many industries, but arguably none more so than the food industry, where concerns about contamination, intentional adulteration, and bioterrorism are ever-present. Using blockchain to trace products is especially promising for certain industries, including the food, fashion and regulated products industries. For the most prevalent tracing challenges, blockchain may provide a formidable solution. Many companies need strong supply chain traceability.
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