How Blockchain Is Improving Supply Chains for the Dietary Supplements and Food Industries
The most reputable companies use blockchains to monitor and enhance their supply chains. Blockchain is the most secure logistics software that can ensure regulatory compliance and product quality. Blockchain allows auditing to take place in real-time which can guarantee that a company’s data is stored and used in a way that saves costs and reduces risk.
What Is Blockchain Technology?
Blockchain is a new way to store and secure data. The blockchain data structure is a series of blocks of data that are chained together with each block connected to the block immediately before it. New information blocks can be continually added to the chain. However, they can never be altered or removed. This approach makes the data permanent, secure, and verified.
With blockchain, your data cannot be secretly tampered with and if things go wrong, it’s easy to know what happened and who should be held accountable. Blockchain can accurately track how goods are made, where they are shipped from, how they are managed, and much more. Because all the permanent information is stored in the blockchain-based system and can be easily shared within the supply-chain network, it provides accurate and comprehensive tracing and accountability.
Blockchain technology has the potential to create smarter and secure supply chains. It allows companies to track the journey of products with real-time visibility.
Information like invoices and contract details that are exchanged in any supply chain process are highly confidential and subject to risk by cyber-attacks. Blockchain keeps the associated information secured with the best data storage practices. This eliminates the chances of your information getting hacked. Hackers would have to change hundreds of copies at the same time, which is next to impossible.
Blockchain provides a holistic and permanent record of every single transaction that takes place in the supply chain process. It enables connecting to each associated party - suppliers, production sites, distribution centers, and even retail partners.
The stored records are accessible by all participants within the network. This eliminates any confusion or disruption within the supply chain process and leads to enhanced traceability. By digitalizing the supply chain process, all companies involved can reduce fraud, errors, and total time spent on products transit and shipping.
Walmart Seeks to Set New Industry Standards
Walmart has been working with IBM for over a year to use blockchain to digitalize the food supply chain process. Before moving the process to a blockchain, it typically took approximately 7 days to trace the source of food. With blockchain, it's been reduced to 2.2 seconds.
Walmart has the ability to trace the origins of over 25 products from five different suppliers. In this regard, the firm has even announced that it will soon be requiring all of its vegetable suppliers to adopt this new system so as to enhance operational transparency as well as internal accountability.
Additionally, Karl Bedwell, a senior director at Walmart Technology, pointed out:
“Creating a (traceability) system for the entire food supply ecosystem has been a challenge for years, and no one had figured it out. We thought that blockchain technology might be a good fit for this problem, because of its focus on trust, immutability, and transparency.”
What Companies Are Using Blockchain
Around the summer of 2018, Walmart along with nine other big-name companies entered into a partnership with IBM in order to devise a brand-new blockchain ecosystem for tracking its respective food supplies across the globe via the use of a unified decentralized platform called the Food Trust Blockchain.
Some of the prominent firms currently part of this collective include Nestlé SA, Dole Food Co., Driscoll’s Inc., Golden State Foods, Kroger Co. and Unilever NV. The goal of the Food Trust is to eventually enhance all of the involved companies’ ability to identify issues related to food recalls (especially viral outbreaks). Read More...
A recent study by the Capgemini Research Institute provides valuable insights into how blockchain can improve supply chains and manufacturing. The institute surveyed over 730 organizations around the globe regarding their current and planned blockchain initiatives. Key takeaways of the study include the following:
The top three reasons manufacturers are investing in blockchain investments:
Manufacturers also cited:
How RB Technologies Is Using Blockchain
RB Technologies provides dietary supplement manufacturers and other supply chain participants with a simple-to-use patent-pending software platform called OmniBlocks. The OmniBlocks platform uses blockchain technology to secure and track the supplement supply chain, from the origins of the first ingredient to the finished product. With blockchain technology, every step of the manufacturing process is timestamped and auditable. This allows our customers to securely document the supplement manufacturing process and gain trust through transparency.
The OmniBlocks software is intuitive, fully customizable, and easily integrates into existing workflows. This helps manufacturers to reduce liability and improve efficiency. All, while easily staying FDA compliant.
Future-proof your manufacturing business.
To learn more about how OmniBlocks can help take your business to the next level, sign up for a demo today.