Blockchain technology has a number of exciting applications, from biotech to global payments. Due to the coronavirus pandemic, a new application of blockchain technology has emerged. The food and beverage industry’s supply chains have come under scrutiny as various suppliers closed their doors and manufacturers were forced to scramble to find new sources of ingredients. Blockchain has emerged as a premier tool for getting more information about supply chains in a matter of seconds. The pandemic has put pressure on the food and beverage industry to manage and trace supply chains more effectively, and some companies are already using blockchain-enabled processes to promote their products. The Applications of Blockchain in the Food and Beverage IndustryJM Smucker, for instance, recently teamed with IBM to implement Farmer Connect, a food tracing platform built on IBM Blockchain. Farmer Connect is allowing the brand to trace a single-source coffee and prove this fact to consumers through a QR code directly on the packaging. The QR code gives consumers a direct view of the origins of the product and creates a new standard for transparency in food tracing. Farmer Connect could help trace the origins of many other products. This application does not directly address the supply problems many companies faced due to the pandemic, but it affirms the applicability of this technology to the food and beverage industry. A study published two years ago looked specifically at how blockchain can help keep secure and seamless digital records of food and beverage information. Blockchain does not store information in a single repository. Instead, it distributes data across a larger network that permits review, but not alteration. In other words, blockchain creates a permanent data log that can be quickly and easily accessed from anywhere with an internet connection. While blockchain was not being used in the food and beverage industry when this study was published, the pandemic highlighted the benefits of using the technology in this niche. Moving forward, blockchain could significantly alter the ways in which people think about supply chains in this industry. How Blockchain Can Facilitate Food and Beverage SafetyThe true value of blockchain in tracking the supply chain is the amount of information it can provide to both brands and consumers. In addition to tracing the product back to a specific farm, blockchain can provide information about farming and harvest practices, and even data like the temperatures of trucks used to transport the product. Blockchain could usher in a new era of product safety by enhancing transparency, which has become increasingly important to consumers as a result of the pandemic. By implanting blockchain, brands can ensure that no tampering happens along the route from grower to processor. Furthermore, consumers can gain immediate access to information about processing and regulatory compliance. Another IBM product known as Food Trust has a blockchain solution that makes it possible to view the certifications, tests, location history, and temperature data for various products. Because of the nature of blockchain, this information can be accessed easily and cannot be changed, so fraud is prevented while reliability is enhanced. While improving transparency is important to consumers, the question of how companies could use blockchain to pivot during times of increased pressure on supply chains still remains. The pandemic demonstrated the importance of agility when it comes to maintaining supply chains. Companies need to be able to carefully and quickly review supply chains when disruption occurs, which is another process facilitated by blockchain. Using Blockchain to Strengthen the Food and Beverage Supply ChainThe Food and Drug Administration (FDA) introduced its New Era of Smarter Food Safety blueprint recently. This plan calls for additional work to be done in the event that an item is recalled. The FDA endorses making technology-based traceability a priority so that outbreaks can be traced quickly and easily, thereby minimizing the impact on public health.
Using blockchain could make finding the source of an outbreak easier and speed up the process of removing contaminated products from store shelves. The technology could also help in the event of a recall to make sure all products are accounted for as quickly as possible. The FDA recognizes that such technology would also help ease the supply chain disruptions caused by issues like the pandemic. Better tracing through blockchain can help identify any weak links in a supply chain so that alternatives can be sought out before an issue even arises. Furthermore, the transparency of blockchain makes it very easy to identify other potential sources that will keep the supply chain operational. Ultimately, using blockchain would make the entire supply chain more flexible and durable, avoiding the issues that arose in March and April of 2020. Some supply chains remain disrupted and could benefit even from the late application of blockchain to food and beverage supply chains. The ability to maintain the supply chain and confirm compliance could streamline many of the administrative processes involved in the food and beverage industry to perhaps even reduce the cost of items. Comments are closed.
|
|