Food Supply Chain Management, or FSCM, has long been seen as a small hanging program in the corporate blockchain space. Now, after many years of pilot projects, the verdict is finally made: the FSCM with blockchain support works well.

For food managers in food companies who haven’t tried it yet, here’s your chance. The major players have invested millions of dollars to demonstrate the effectiveness of the technology. All you have to do is find the right app for your business.

Of course, the risks are still there – and in this article I’ll suggest ways to reduce them – but the possibilities are enormous. If done correctly, you can reduce operating costs, expand into new markets, differentiate your products and increase market share.

FSCM: The Ideal Blockchain Use Case For Enterprise?
Food supply chains define the blockchain-can-fix-it brand for different and diverse actors who will all benefit greatly from improved coordination capacity and a coherent version of the truth.

Food supply chains also look for “changing needs”. World Health Organization data shows that nearly one in ten people contract a foodborne illness each year, and nearly half a million die. Despite general ideas, this problem is not a “developing country only” problem in Europe, which has the lowest estimated burden of foodborne disease in the world. According to the World Health Organization, 23 million people still fall ill from unsafe food each year. . And 5,000 of them died. Not surprisingly, consumers demand a deeper understanding of a food source.

Then there is the loss. Even for basic items that have one ingredient like fruits and vegetables, not handling the supply chain properly results in huge losses. In fact, up to a third of all food produced in the world is abandoned even before it reaches the shelves. This level of loss is nothing more than a global shame. Then we produce and get rid of more food than is needed to feed the hungry. The need to improve supply chain resilience is enormous, and so is the impact on hunger.

The benefits of FSCM optimization vary with blockchain solutions. From a social point of view, it goes without saying that prevention of disease, death and food loss is desirable. For companies and farmers who are at the forefront of the struggle to improve FSCM, provide solutions that support blockchain coordination. It can lead to improved logistical efficiency ranging from reduced food waste to the ability to deliver on time, reduced accounting and auditing costs, automated payments, and improved financing options. Companies can also stand out by offering consumers greater transparency in their products.

But isn’t this just propaganda?
As with all new flagship technologies, the sprayer raises expectations. So in 2018 and 2019, when – somehow – not every global food supply chain migrated to a blockchain-enabled solution, skeptics naturally stated that this technology did not work.

In fact, the truth is that there have been major innovations in blockchain technology in the FSCM space in recent years. While dozens, possibly hundreds of pilot projects have demonstrated the viability of this technology, the first major launches have recently started to take hold. Perhaps the most striking example is the IBM Food Fund. It’s now being used by major players like Walmart, Nestlé, Unilever, and Tyson Foods and really provides tangible benefits. For example, Nestlé uses the network to track the Zoégas coffee brand from farm to cup, so that consumers can trace the origins of their selected coffee releases to various sources in Brazil, Rwanda and Colombia, with sustainability data verified by the Rainforest Alliance, another IBM Mattillit. Commensal.

Another example is Walmart Canada, which is using DL Freight, a blockchain-based supply chain platform, as the national standard for freight bills and payments management. By the end of August 2020, the system had processed more than 150,000 bills, of which less than 2% led to disputes. Frances Lalonde, Vice President of Transportation at Walmart Canada, noted:

“Blockchain technology enables major advances in our smart transportation network with faster payments, significant cost savings, and other benefits in our supply chain.
Real-world blockchain applications at FSCM should be a wake-up call for innovation leaders in food companies of all sizes.

Source: CoinTelegraph