Walmart's recent statement could signal the onset of extensive blockchain integration within global supply chains. in the global supply chain Starting next year, Walmart intends to implement a new system that obligates vendors of leafy greens to use an IBM-developed blockchain platform for product tracking.
Although blockchain technology is primarily linked with financial technology, it appears that logistics could be the first it might soon be widely adopted by a long-established sector. Walmart has long sought innovative approaches for food item tracking. While many divisions have embraced technological efficiencies, the food supply chain still relies heavily on outdated tracking methods.
In the logistics sector, including food distribution, there's typically no central database for record-keeping. Food suppliers usually note only where items are sourced and sold, leaving them unaware of an item's origin or ultimate destination.
Walmart is Making Changes
With the current methodology, identifying the origin of food contamination can take an extended period. In today's mass-production economy, contaminated food can rapidly affect thousands of individuals worldwide.
This year, the USA experienced a significant E.coli outbreak due to contaminated romaine lettuce affecting 36 states. The exact number of illnesses is unknown, but 205 required medical attention, with five fatalities. The outbreak was eventually linked to Arizona's Salinas Valley and Yuma.
Numerous incidents like the deadly one from April have occurred, which explains why Walmart successfully persuaded companies like Dole, Fresh Express, and Taylor Farms to adopt their blockchain-based tracking initiative.
According to Frank Yiannas, Walmart's food safety expert, 'Our fresh leafy greens suppliers must trace products back to their farms in seconds—not days or weeks.' Swift traceability profoundly impacts consumers, particularly vulnerable groups like children and the elderly.
Blockchain is a Great Solution
Walmart appears dedicated to enhancing food supply safety. The same blockchain technology could also guarantee that consumers receive the high-quality food they expect.
Read: Blockchain & Supply Chain Management
Alibaba, a global retail giant, connects food sellers with Chinese consumers. Many in China distrust domestic food sources and willingly pay extra for imported items. Australian dietary products, highly sought after in China, are frequently counterfeited.
Blackmores was one of the first Earlier this year, Australian companies started experimenting with Alibaba's blockchain authentication trial. Alibaba stated, 'These tools are crafted to validate, verify, and continually report on the transfer of product ownership and provision.'
Whether ensuring food item quality or preventing contamination-related fatalities, blockchain seems ideal for the ever-evolving global supply network. As China develops its Belt and Road Initiative (BRI), integrating blockchain in global trade relations might become significant, given its evident logistic benefits.
