The number of ‘use cases’ we are seeing for Blockchain is increasing exponentially across business sectors as potential users learn more about its likely benefits. In particular, supply chains have been notoriously inefficient and could really benefit from Blockchain – a system that offers end to end transparency and visibility for all the different constituents involved in supplying goods.
By documenting every step of the chain in a single system, the system can allow both suppliers and distributors of food products such as fruit and vegetables to become more nimble and responsive to shifts in supply and demand.
In food supply, a lot of things happen along the way. Being able to have a system that documents each and every step of that journey in the supply chain management system is remarkable because the data gleaned from that suddenly becomes much more relevant.
One example could be when there is a shortage of certain vegetables on the shelves of a major supermarket. That can be immediately communicated back to the suppliers who will then know to get more vegetables on trucks that can then go on to the distribution centres that need them and ultimately to customers.
Blockchain can also have other supply chain benefits for specific sets of customers. For instance, younger people are perhaps more ethically and environmentally aware today and are always seeking more and more information about the goods they buy and where they come from. Taking a pint of milk as an example, Blockchain can allow customers to scan a label to learn how long that milk has been in transit, how long it has been sitting on the shelf and even which farm it came from.
Erik A. Swords, portfolio manager, Mellon.
Doc ID: 397764