Can blockchain save struggling supply chains?

Can blockchain save struggling supply chains?
Blockchain technology has a role to play in resolving disruption related to Covid-19, reducing costs, removing inefficiencies and limiting fraudulent activity. (By Erik Swords, Analyst at Mellon IM, BNY Mellon IM Store)

In recent months, problems with global supply chains have been blamed for shortages in supermarkets and inflation in major global economies.

From farm to fork: secure monitoring
Part of the problem stems from the soaring cost of shipping containers: the container price index for the Asia and North America regions has more than doubled since the start of the year and the logistics sector has declined. preparing for a peak in demand and further turmoil as the holiday season approaches. It is precisely in this situation that blockchain can come in handy in order to minimize disruption.

The main characteristics of this technology - immutability, transparency and the ability to promote interoperability between competing companies - constitute a significant advantage.

The ability to track items from production to shipment allows businesses to confirm product authenticity and increase transparency by building consumer confidence while increasing efficiency. This is a significant advantage for the agricultural sector, which must be able to guarantee optimum freshness of food.

Thus, blueberry producers, for example, have a very short time to deliver the fruits, which must be stored between 1 and 0 ° C for a maximum of 42 days.

To meet this imperative, an Oregon processing plant has partnered with a blockchain technology provider to record the quality of processed blueberries in real time, ensuring that the crop leaving the farm is delivered respecting the temperature threshold.


Their integrated Internet of Things (IoT) and blockchain-based supply chain solution uses humidity, temperature and product location sensors, data recorded in minute intervals. With continuous tracking throughout the shipment, cargo can be diverted to a closer market to be sold faster.

If this process made possible thanks to the blockchain were now generalized, the current difficulties would be minimized: the distances traveled by goods would be optimized and the "shortages" on the supermarket shelves would be less important.

Beyond raw materials
The agricultural sector is not alone in being able to benefit from new ways of exploiting the advantages of blockchain. The online market for second hand products is growing day by day. The blockchain can be used there to guarantee the authenticity of goods and avoid counterfeits.

For example, Ralph Lauren has implemented digital product identifiers that allow customers to scan labels with their smartphones and thus authenticate a product in seconds. High-end automakers are also starting to use blockchain to track the authenticity of cars.

This tamper-proof identification also brings benefits in terms of location: each unit can be located extremely precisely at any time. This optimization also allows a fluidification of the flow of goods transport.

Therefore, blockchain plays a role in promoting sustainability as consumers demand clear information about the origin and provenance of the goods they buy. Blockchain technology helps ensure the reliability of the information provided while supporting companies' environmental and social initiatives.

Finally, the ability to know in real time the location of all the elements of the supply chain of objects of our daily life offered by this technology could help relieve anxious consumers of finding empty shelves when approaching. holidays.