images Why You Should Develop a Blockchain-based Food Supply Chain System

Why You Should Develop a Blockchain-based Food Supply Chain System

Posted by : Mudit Kumar | 05-Oct-2020

  • Blockchain-based Food Supply Chain Solutions

    Our food supply chain mechanism requires several dynamic interactions between multiple players. We can encourage shoppers to eat better, sellers to save money, and food to keep out of the news by simplifying them. For the food industry, Blockchain-based supply chain management will do so substantially. However, to do this, constructive cooperation and involvement from all in the food industry are necessary. It would be important for innovators, from small growers to major retailers, to be together on this journey.

    There is an unparalleled requirement for a healthier, cleaner food source, from food producers and manufacturers to kitchens across the globe. It can be made possible by blockchain-based food supply chain system implementation. It will produce disruptive outcomes for companies. Via a permitted, permanent, and shared record of food supply chain system data, a blockchain-based network will link all respondents across the food supply. The effect is a personalized suite of solutions that can increase food quality and freshness, enable efficiencies in the supply chain, reduce waste, improve the reputation of a company, and directly add to the bottom line.

    Also, Read |  Is Blockchain the Right Solution to Ensure Food Safety

    Why Do We Need Blockchain-based Food Supply Chain Network?

    With a comprehensive environment, Blockchain can support a business to achieve goals around traceability, security, freshness, and more. A blockchain approach is not just about technology, it’s about addressing market challenges that were historically insolvable because the ecosystem failed to exchange information in an open, secure, and trustworthy way. Blockchain technology offers a trustworthy database of records, unlike other storage mechanisms.

    Understanding Blockchain

    Blockchain provides the framework for a new wave of transactions that streamlines business procedures while ensuring trust and accountability.

    Open blockchain networks are available to anyone and private, such as Bitcoin. Anyone on those networks will enter and see any events that occur. Usually, such networks involve resource-intensive computations to help stop fraudulent transactions.

    On the other hand, developing a permissioned blockchain-based food supply chain approach enables invited participants to know precisely with whom they are transacting. Participants often dictate what information is seen by whom, while presenting evidence on a need-to-know basis. On our blockchain, smart contracts also run, enabling business logic to help settle conflicts, execute contracts automatically, and create trust.

    Also, Read | Developing a Blockchain-based Traceability System for the Food Supply Chain

    Blockchain-based Food Supply Chain Solutions

    Centered on the blockchain, a food delivery infrastructure rewards all network users with a cleaner, smarter, and more efficient food ecosystem. Transaction and data digitization offers a more effective means of operating through the supply chain, from producers, manufacturers, dealers, distributors, and regulators to clients. The solution provides approved users with direct access, from farm to store and eventually to the customer, to actionable food supply chain details. 

    The complete history and current location of each specific food item, as well as relevant information such as certifications, test results, and temperature records, are readily available within seconds when released in the blockchain.

    Blockchain will enable you to follow the modern norm for openness and confidence with capabilities for cleaner food, longer shelf life, minimizing waste, easier traceability, and improved access to shared knowledge.

    Also, Read | Modernizing Food Supply Chain with Blockchain | From Farm to Table

    Fresh Food Supply Chain Challenges

    More than a fad is the need for fresher food. Over the last few years, fresh food sales have significantly outpaced all food and beverage units, accounting for up a quarter of all grocery transactions in 2017. But, even though buyers, manufacturers, and manufacturers alike raise their scrutiny for freshness from farm to shelves, fresh produce nevertheless spoils $7 billion worth before ever hitting a market in North America alone.

    Longer Food Transits before Reaching our Kitchen

    On average, American meals fly 1,500 miles from farm to fork. Due to excessive time in transport and storage, this can lead to increased spoilage of fresh produce.

    Complex and Disparate Supply Chains

    New goods now invest up to 50 percent of their shelf life in paddock-to-retail transit. Along with differences between suppliers, dealers, and consumers, dynamic supply chains limit travel speeds and raise the complexities of preserving food freshness.

    lack of inventory visibility

    It ultimately becomes intangible as food continues its post-harvest travel, making it impossible to recognize what happens to the 5 percent of our global food supply that never reaches shelves due to losses during shipping and storage.

    Addressing the Challenges with a Blockchain Solution

    A blockchain-powered automated food supply chain allows maximum accountability across the food industry so that retailers can provide their customers with fresher choices (with improved shelf life), leading to decreased inventory losses and increased profits.

    • Watch how new food actually is and how long it’s been traveling in real-time, to comfortably understand the available shelf life.
    • In the supply chain, top-to-bottom exposure helps businesses to know precisely where the produce comes from and the circumstances in which it was delivered.
    • Access to reliable transactional data, weather data, inventory, etc. helps the team to make strategic decisions that will optimize and increase supply chain efficiencies based on that knowledge.

    Also, Read | Developing an Online Food Delivery App with Blockchain

    Food Fraud across the Supply Chain

    Food theft continues to flourish, powered by the complexities of today’s global food system: it is a worldwide industry that approaches $10 billion annually. Anything from honey and cocoa to peanuts and liquor is at risk of adulteration, as long as there is a benefit to be gained (and there is). Suppliers are generally responsible for the effects, regardless of the extent of safety risks or where the vulnerability has arisen-but everybody in the food sector suffers. What’s holding alive the food fraud?

    Outdated practices 

    Owing to the lack of oversight, responsibility, and effective controls, food smuggling has risen by 60 percent over the last couple of years. Regulators, however, have increasingly been requesting state-of-the-art procedures and technologies to help get businesses up to date and eventually build a more open food system.

    Complex supply chains  full of blind spots

    Many firms are generally unaware of where and how they are vulnerable to food fraud; however, poor ties can exist through raw materials, ingredients, goods, and packaging with up to 10 percent of the food chain impacted by food fraud.

    Vulnerable regulatory systems 
    Current protocols for preserving enforcement records are vulnerable to 
    inaccuracies, fraud, and deliberate errors caused by manipulation, either on paper oin consolidated archives.

    Also, Read | Blockchain Solutions in the Food Industry | Exploring Potential Use Cases

    Addressing the Challenges with Blockchain

    A collaborative blockchain-powered automated food supply chain facilitates complete accountability by digitizing and preserving transaction documents transparently and permanently, removing possibilities for food chain fraud.

    • Increased monitoring sheds a light on each connexion in the food chain, allowing the culprits of food theft to be tracked in real time-thus establishing transparency.
    • Safe data exchange between players in the food chain reduces the risk of unknowingly transferring fake foods by participants.
    • Improved compliance offers fraudsters fewer chances to access their supply chain, and permanent documents provide greater monitoring of material protection and quality requirements.

    If you are looking to explore blockchain’s potential in the food industry, connect with our blockchain experts for more information.

Leave a Comment

Name is required

Comment is required

Recaptcha is required.

No Comments Yet.

About Author

Mudit Kumar (Writer)

Mudit has been working with Oodles since 2017. He writes about technologies that not only disrupt the digital space but also influence the physical world. Initially, he explored revolutionary technologies like ERP (Enterprise Resource Planning) and AI (Artificial Intelligence). Now, he focuses on unfolding the elements of blockchain technology, given its potential and edge over others.

More From Oodles

Request For Proposal

Cookies are important to the proper functioning of a site. To improve your experience, we use cookies to remember log-in details and provide secure log-in, collect statistics to optimize site functionality, and deliver content tailored to your interests. Click Agree and Proceed to accept cookies and go directly to the site or click on View Cookie Settings to see detailed descriptions of the types of cookies and choose whether to accept certain cookies while on the site.

We would love to hear from you!

Oodles | Blockchain Development Company

Please enter a valid Phone Number

Please remove URL from text

Recaptcha is required.